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agasfer [191]
3 years ago
15

Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,

with the first payment coming immediately. The going rate on such annuities is 5.15%. How much would it cost him to buy the annuity today
Business
1 answer:
Elena L [17]3 years ago
4 0

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

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World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per yea
3241004551 [841]

Answer:

b.Increases in the global population

c.Services such as web conferencing and teleconferencing that facilitate international meetings.

d.International trade agreements such as the North American Free Trade Agreement (NAFTA).

Explanation:

As the countries increase their trade with free trade agreement like NAFTA or the Eurozone which enables to a higher transactions of factors between countries like labor, capital and goods.

Also better communications method facilitate to build trust between parties thus, making trade more feasible.

More population enables more people willing to trade as well.

7 0
3 years ago
Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $.306 an
alexdok [17]

Answer:

B. $1,639 ​

Explanation:

To do arbitraje we will ask at Bank A for $0.305

and then bid in Bank B at $0.306

As the transactions has no cost we are doing a profit by using the exchange as they allowed. Doing this procedure will at some point eliminate the difference in exchange rate for these bank as the purchase will rise the ask rate for Bank A and the sale will decrease the bid rate.

500,000 \times \frac{0.306}{0.305}

Total: 501639,3442622951

The profit will be for: 501,639.34 - 500,000 = 1,639.34

7 0
3 years ago
Kennedy, Inc. reported the following data:
Degger [83]

Answer:

The cash flows from operating activities section of the statement of cash flows using the indirect method is $172,475.

Explanation:

Kennedy, Inc.

Statement of cash flows (extract)

Net income                                                 $179,562

Add: Depreciation expense                            15,511

        Loss on disposal of equipment             11,046

Less: Gain on sale of building                      (21,801)

         Increase in accounts receivable         (8,734)

         Decrease in accounts payable            (3,109)

Cash flows from operating activities     $172,475

4 0
3 years ago
The amount by which government expenditures exceed revenues during a particular year is the:A. public debt.B. budget deficit.C.
slava [35]

Answer:

The correct answer is

B. budget deficit

good luck

4 0
3 years ago
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand,
Alla [95]

Answer:

$10,200,000.

Explanation:

End inventory + Sales - Begin inventory = # of units that need to be produced

# of units that need to be produced @  $30 per = Your answer

4 0
3 years ago
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