Answer:
b. False
Explanation:
holding period return = [dividends received + (ending value - initial value)] / initial value
9% = [dividends received + (ending value - initial value)] / initial value
dividend yield = dividend / ending value
3% = dividend / ending value
price appreciation = (ending value / initial value) - 1
1.12 = ending value / initial value
ending value = 1.12 initial value ⇒ WE REPLACE IN THE HPR ANN DY FORMULAS
3% = dividend / 0.12 initial value
dividend = 0.36 initial value
9% = [dividends received + (1.12 initial - initial value)] / initial value
9% = dividends received + (0.12 initial value / initial value)
9% = dividends received + 12%
9% = 0.36 initial value + 12%
-3% = 0.36 initial value ⇒ THIS CANNOT BE TRUE, SO THE QUESTION MUST BE FALSE
Answer:
True
Explanation:
Government of Andhra Pradesh have made substantial investments through providing Post-Matric Scholarships to SC students on a Saturation basis. This laudable initiative over the years has encouraged a large number of SC students to complete professional Courses and other Graduate Courses.
Students whose family income is less than Rs.2.00 lakhs per annum from all sources are eligible. Total income from all sources of the employed candidates or his/her parents/guardians, shall not exceed Rs.2.00 lakhs per annum. (Two hundred thousand rupees per annum)
Countries Eligible for Foreign Studies under this scheme
USA, UK, Australia, Canada, and Singapore.
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Answer:
Since the actual performance of the separate account is actually higher than the assumed interest by 1 %, this means that K will be paid 1% more on the value of his/her annuity account.
Explanation:
An annuity account is a policy holder's investment account where the insurance company invests on behalf of the annuitant. The insurance company determine an assumed interest rate that will cover for the insurance company costs and the profit margin that will be paid to the annuitant periodically.
Annuity interest help investors plan for retirement income since the annuitant knows how much they expect to receive upon maturity of the policy. Knowing how to calculate the value of an annuity can also help investors to consider other investment options.
An assumed interest rate that is determined by the insurance company. This is the value of the annuity account and the annuitant should not be paid below the value of this rate. The actual interest rate is the actual performance of the investment in the market. If this rate increases, then the value of payment to be made to the annuitant also increases.
In our case, the actual performance of the separate account is actually higher than the assumed interest by 1 % this means that K will be paid 1% more on the value of his/her annuity account.
The approximate internal rate of return for this investment is $0.054.
<h3><u>
What is rate of return?</u></h3>
- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
- You determine the percentage change from the start of the period to the end when computing the rate of return.
- Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR).
Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets.
We have, (Net Annual cash inflow x PV of an Annuity of 1 at 10%) - Initial Investment = Net present value (find closest to zero))
($17,514 x 4.111) = $72000.054 - $72,000 = $0.054 (closest to zero).
Know more about rate of return with the help of the given link:
brainly.com/question/24232401
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