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tresset_1 [31]
3 years ago
9

A. calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity i

s $1.6 million and the annuity earns a guaranteed annual return of 10 percent. the payments are to begin at the end of the current year. (do not round intermediate calculations. round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Leokris [45]3 years ago
3 0
<span>The first step is to multiply the present value by the interest rate. Since the present value is $1.6 million and the interest rate is 10%, this yields. $160,000. This product is then divided by 1 - (1 + the rate)^-term. So it is divided by 1 - (1.1)^-15. That is, the annual payment = $160,000/[1 - 1.1^-15] = $160,000/.760607951= $210,358.04</span>
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Answer:

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Explanation:

The life-cycle theory proposes that the United States boosted worldwide economic trade exporting their products. At first, the products were delivered to other world developed countries. Over time, those developed countries started to study American products to become manufacturers. This implies competition so to spend fewer costs, the developed countries took their operations to developing nations.

After some time, it is believed that those developing countries are likely to become manufacturers as well at even cheaper costs provoking that the United States begin to import products from the developing nations.

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Apple, a company that makes smartphones, is a good illustration of price lining in action. Apple offers its iPhone lineup in a range of price points, with each model differing mainly in the small number of extra features that are added to the more expensive ones. Instead of solely selling expensive iPhones, Apple now offers a variety of models to appeal to customers with varying levels of purchasing power, which helps them grow sales.

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3 years ago
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wariber [46]

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3 0
1 year ago
You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.
Nady [450]

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

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= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

8 0
3 years ago
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