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
United States exports soybean oil to China. However, to protect the Chinese soybean oil market, Chinese government has high tari
solniwko [45]

Answer:

United States can set up plants in China to avoid high tariffs

8 0
3 years ago
Building Big Box is a home improvement store based in Kansas and has been responsible for introducing some of the most innovativ
lara [203]

Answer: Finance

Explanation:

The functional area that will be responsible for securing the necessary funding for the expansion is the finance department.

The finance department refers to the department in an organization which is responsible for funds acquisition, funds management and planning for the expenditures on assets.

Since the company is expanding operations by building another facility in Canada, the finance department will provide the funds.

8 0
3 years ago
Describe external resources useful to entrepreneurs during concept development
marin [14]
The external research that would be useful would be research.
Research could be divided into direct and indirect.
Direct research is being done by directly ask the potential customer what they want (through things like questionnaire)
And indirect research is being done through observation (pay attention to the market trend)
4 0
3 years ago
A Six sigma (6s) approach to quality focuses on preventing defects by using customer feedback to reduce variation and waste. Gro
andre [41]

Answer:

False

Explanation:

Six sigma is a tool used by organizations to improve their processes and reduce defects, to improve quality of their products or services.

<u><em>It focuses on reducing variation in the business processes (from manufacturing, sales, delivery, to customer service), to reduce defects and increase the quality of goods and services</em></u><em>.</em> <em>It also generally improves organizational performance and increases profit.</em>

Six sigma does NOT focus on customers feedback to reduce variation and waste.

3 0
3 years ago
One reason many companies do not organize themselves as an s corporation is that this form of business:
S_A_V [24]

Answer:

S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

Explanation:

There are specific pre-requisites before a company may apply as an S corporation

  • It implies that corporation shareholders must be U.S. residents only who directly own the shares.
  • Maximum 100 shareholders can be part of S corporation.  
  • The stock options are restricted to one class only.

The limited stock options, no foreign investment challenges and limitation of maximum shareholders create a barrier to open S type corporation. So the answer is S type corporation is difficult to register as it has a particular eligibility restriction, which many businesses are unable to meet.

7 0
3 years ago
Other questions:
  • The income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
    15·1 answer
  • Q 2.3: mason corporation purchased a piece of land 5 years ago when the price of land was low. it plans to develop the land into
    6·1 answer
  • Why do economists sometimes offer conflicting advice to policymakers?
    8·1 answer
  • Suppose you are a salesperson for an office supply company. one of your customers left you a message indicating that they were u
    8·1 answer
  • Refer to the demand schedule below.
    9·2 answers
  • Hau Lee​ Furniture, Inc., spends 45​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequa
    10·1 answer
  • Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
    7·2 answers
  • Francis is a busy manager. She needs to quickly let her employees know about shift schedule changes for Wednesday afternoon, so
    5·1 answer
  • On January 1, 2021, Bombay Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for B
    14·1 answer
  • Lamping, Inc., is considering the purchase of a machine that would cost $520,000 and would last for 7 years, at the end of which
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!