Answer:
- <em>The annual annuity payment (PMT) will be </em><u>$750.00</u>
Explanation:
The value of a <em>annuity payment</em>, A, is equal to the present value of the future payments.
When the interest rate,r, and the <em>annual annuity payment (PMT) </em>remain constant over the entire life of the annuity, the formula for the value of the annuity is:
![A=PMT\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^{t}}\bigg]](https://tex.z-dn.net/?f=A%3DPMT%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5E%7Bt%7D%7D%5Cbigg%5D)
To caculate PMT substitute:
- A = $3,806.77
- r = 5.00% = 0.05
- t = 6 years
![\$3,806.77=PMT\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{6}}\bigg]](https://tex.z-dn.net/?f=%5C%243%2C806.77%3DPMT%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B6%7D%7D%5Cbigg%5D)
Compute and solve for PMT:
![\$3,806.77=PMT\times \bigg[20-14.9243079\bigg]\\\\\\PMT=\$3,806.77/5.07569207=\$750.00](https://tex.z-dn.net/?f=%5C%243%2C806.77%3DPMT%5Ctimes%20%5Cbigg%5B20-14.9243079%5Cbigg%5D%5C%5C%5C%5C%5C%5CPMT%3D%5C%243%2C806.77%2F5.07569207%3D%5C%24750.00)
Option A
It's attractive to customers, because it covers any losses from damage that occur due to faulty work is true of bonding
<h3><u>
Explanation:</u></h3>
A guarantee of execution needed, unless by regulation or buyer requirement, for many companies, common typically prevailing entrepreneurs, temporary group businesses, janitorial firms and transactions with administration contracts.
Sometimes complicated with insurance, bonding aids guarantee that the job you've been selected to do is done and that the customer is shielded against mishaps from stealing or harm caused by your employees. The contrast between a bond and insurance is that a bonding firm assures your pay by demanding security or endorsement if demand is produced upon you.
Answer:
can I see the options for this question?
