1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VladimirAG [237]
3 years ago
12

An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of

$50,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost him to buy such an annuity today?
Business
1 answer:
lions [1.4K]3 years ago
8 0

Answer:

It should cost $605,183.13 today.

Explanation:

Giving the following information:

Cash flow= $50,000

Number of years= 30

Interest rate= 7.25%

To calculate the present value, first, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {50,000*[(1.0725^30)-1]} / 0.0725

FV= $4,940,897.47

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 4,940,897.47/ (1.0725^20)

PV= $605,183.13

You might be interested in
Hawaiian food would be an example of what type of cuisine?
iragen [17]
Nouvelle cuisine



Hope it helps


Pls mark as brainlist
8 0
3 years ago
During the latest month, the company purchased and used 47,000 pounds of direct materials at a price of $1.20 per pound to produ
Nataliya [291]

Answer:

$1400 U

Explanation:

Total direct materials cost variance = (47,000 actual pounds × $1.20 actual cost per pound) − (50,000 standard pounds × $1.10 per pound) = $1,400 unfavorable

5 0
3 years ago
During which phase of the communication process is it most likely that the entire communication process may repeat? A: feedback
Alexandra [31]
The correct option is A.
Feedback refers to the receiver's response to the message he has received. The receiver may have to write the response down and send it to the sender who read it and interpret the message; thus repeating the whole process of communication again.
8 0
3 years ago
A researcher conducts a survey of people who use anxiety medications, recruited through an advertisement in the local paper. the
Darya [45]
<span>The researcher has violated participant confidentiality and has made the validity of the study invalid. The people whose confidentiality was breached should be notified and they should have the right to revoke their information from the study. No one who believes they have participated with confidentiality should be subjected to having others know they were involved if they do not want that.</span><span />
3 0
3 years ago
Transcultural global ethics always maintains the value of human rights. Have Google’s operations been consistent with the value
sp2606 [1]
Many activists and watchdogs argue that Google has not always done enough to promote or even protect human rights around the world. This is usually the result of efforts by Google to market its search engine in nations like China, where the state has an interest in maintaining censorship of search results. The project, known as Dragonfly, was recently abandoned by Google.

In recent years, Google was among the companies that faced criticism for marketing an app that allowed men in Saudi Arabia to track the locations of their wives by using their cell phones. This was seen as an affront to women's rights, and the company withdrew the product after criticism from the media and shareholders. Google's interest in artificial intelligence has also led to criticism about its commitment to ethical practices and to human rights.

At the same time, there is no doubt that Google has expanded people's access to information and to many other online services around the world. It has made several global public statements against censorship. Its most vocal critics, indeed, have pointed to its previous stands for free access to information in pointing out the hypocrisy of Dragonfly and other ventures.
4 0
3 years ago
Other questions:
  • Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard variable overhead cos
    10·1 answer
  • Explain how e-business has created a new type of strategic alliance among companies.
    9·1 answer
  • When a mortgage loan with level periodic payments has been completely repaid by the maturity date, it is said to be?
    6·1 answer
  • Ivanhoe Company has a factory machine with a book value of $88,100 and a remaining useful life of 7 years. It can be sold for $3
    14·1 answer
  • Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of t
    10·1 answer
  • P12-6A. The following data, presented in alphabetical order, are taken from the records of Nieto Corporation.
    9·1 answer
  • Which of the following situations suggests the acceptance of an investment​ proposal? A. The cash inflows are lesser than the in
    9·1 answer
  • Your product Belch has an actual market share of 14.2%, and a potential market share of 17.6%. The most likely scenario to expla
    14·1 answer
  • Jason is shopping at Hollister. Hollister has a sale: spend $100 saves 10%. If Jason buys clothes that costs $100, how much will
    6·1 answer
  • Jordan Freight Company owns a truck that cost $41,000. Currently, the truck’s book value is $24,000, and its expected remaining
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!