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olasank [31]
3 years ago
9

You want to buy an annuity that will pay you $1000 per year for 20 years. You find an account that will pay 4% per year, compoun

ded annually. How much must you deposit today in order to fund this annuity?
Business
1 answer:
tresset_1 [31]3 years ago
3 0

Answer:

The amount to be deposited today = $13,590.33

Explanation:

<em>The amount to be paid for the annuity would the sum equal to the present value of the cash flow from the annuity.</em> The present value of an ordinary annuity is determined using the relationship below:

PV of annuity = A× ( (1-(1+r)^(-n) )/r

A- Annual cash flow

r- interest rate per annul

n- Number of years

PV- Present Value of annuity'

DATA

A-1000

r- 4%

n- 20

PV = 1,000 ×( (1 - 1.04^(-20))/0.04 =$13,590.33

The amount to be deposited today = $13,590.33

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P. Jameson Co. sold $500 of merchandise on Master Card credit sales. The net cash receipts from the sale are immediately deposit
Alchen [17]

Answer:

The journal entry would be as follows:

Account                                  Debit           Credit

Cash                                       $480

Sales Revenue                                           $500

Credit Card Expense                                 $20

The Credit Card Expense corresponds to the 4% fee that Master Card charged P. Jameson Co. ($500 x 20% = $20)

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3 years ago
What political reasons Government intervention in markets​
Varvara68 [4.7K]

Answer:

The main reasons for policy intervention by the government are:

To correct for market failures.

To achieve a more equitable distribution of income and wealth.

To improve the performance of the economy.

Explanation:

To correct for market failures: This is achieve by creating regulation institutions for the most important sectors in any given economy e.g. Federal Reserve, Treasury Department

To achieve a more equitable distribution of income and wealth: This is the aim of a develop economy to allocate the resources where needed and for that some countries rely in the government capability to prevent Monopoly creation or to protect its Internal Labor market.

To improve the performance of the economy.: In order to meet the economical agenda of any given government the institutions use variation on the interest rate, the government expenditure or the tax policies.

6 0
3 years ago
Those who make economic policy concerning price controls often do so in order to?
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Answer:

establish a more equitable result based on normative judgements. In the market for personal computers and in the stock market: 1) supply and demand shifts change prices and quantities.

5 0
2 years ago
Imagine that a designer writes content for their online portfolio. To come across as knowledgeable about UX design, they include
denis23 [38]

To improve their written content, the designer can do the following:

  1. Understand the audience he targets.
  2. Incorporate storytelling to capture the interests of his audience.
  3. Make the presentation simple.
  4. Incorporation of text in the User Interface.
  5. Make a good copy to sell your skill.

<h3>Who is a designer?</h3>

A designer is an individual that uses computer-aided software and devices to plan and draw the soft/hard copies of a material.

A User Interface designer designs the screens that users go through while surfing a website.

To improve their written content and improve their portfolio, they can use the numbered steps above.

Learn more about UI Designers here:

brainly.com/question/898119

5 0
2 years ago
Round Hammer is comparing two different capital structures: An all-equity plan (Plan l) and a levered plan (Plan Il). Under Plan
Dominik [7]

Explanation:

A). The computation of price per share is shown below:-

Debt outstanding ÷ (Stock outstanding of Plan 1 - Stock outstanding of

Plan 2)

= $1,730,000 ÷ (205,000 - 125,000)

= $21.63 per share

B a.) Under equity plan the value is

= Debt outstanding × Stock outstanding of Plan 1

= $21.63 × 205,000 shares

= $4,433,125

B b.) under the levered plan the value is

Price per share × Stock outstanding of Plan 2 + Debt outstanding

= $21.63 × 125,000 shares + $1,730,000

= $2,703,125 + $1,730,000

= $4,433,125

6 0
3 years ago
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