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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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harina [27]

Answer:

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3 0
3 years ago
Which of the following statements is true?
nadezda [96]

Answer:

Correct option is (c)

Explanation:

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It is a computer based software that enables retrieving past data, analyse present data and predict future data, thereby simplifying decision making process. As such, it can be said that MIS contributes or enables business success and innovation.

3 0
3 years ago
Your analyst team has received a request for system development that focuses on moving the current system into a new operating e
LenaWriter [7]

The key source of the development requests likely to be generated to  Information system managers. Therefore the correct option is (D).

<h3>What is Information System Management? </h3>

The Information system of Management refers to the management of the data, facts, figures or information of the system in the computer by the organizations.

According to the above scenario, The system development team is focusing on the adopting the operating environment system which is adopted by the Information system managers

Therefore the correct option is (D).

Learn more about Information system managers here:

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8 0
1 year ago
1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .
horsena [70]

Answer:

1. Discount rate.

2. Increase.

Explanation:

A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).

Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;

1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.

3. Regulating banking activities: it has the power to supervise and regulate banks.

The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.

<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>

5 0
3 years ago
In order to solve​ abb's problem, the company needed a new technology that could​ ______
IrinaK [193]

In order to solve​ abb's problem, the company needed a new technology that could​ change the companies organizational culture. In many cases, changing how an organization runs and treats their employees gives them advantages to tailor ideas to what fits their employees best. When the culture of an organization aligns their values with the employees there is better work and ideas forming.

4 0
2 years ago
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