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Leno4ka [110]
2 years ago
10

The maybe pay life insurance co. is trying to sell you an investment policy that will pay you and your heirs $39,000 per year fo

rever. if the required return on this investment is 5.8 percent, how much will you pay for the policy? (do not round intermediate calculations. round your answer to 2 decimal places,
e.g., 32.16.)
Mathematics
2 answers:
GenaCL600 [577]2 years ago
7 0

Answer:

Step-by-step explanation:

Given that,

Investment policy pay

PV= $39,000/year

% investment return =5.8%

r= 5.8% =5.8/100 = 0.058

Even though we need to calculate the value for one year, so we need to use one years as the number of periods. To find the FV of a lump sum, we use:

FV=PV/r

FV=39,000/0.058

FV= $672,413.7931

To 2d.p

FV=$672,413.79

Lorico [155]2 years ago
5 0
This cash flow is a perpetuity. To find the present value of perpetuity, we use the equation of
Pv=C÷r
Pv=39,000÷0.058
Pv=672,413.79
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Answer:

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Step-by-step explanation:

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3 years ago
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2 years ago
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3 0
3 years ago
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Based on a​ poll, among adults who regret getting​ tattoos, 12​% say that they were too young when they got their tattoos. Assum
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c. 0. 279

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Using binomial probability distribution

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P (x=0,1) = 0.12 ⁰(0.88)¹⁰10 C0  + 0.12 (0.88)⁹ 10 C1=  1* 0.279 * 1  + 0.12 ( 0.3165) 10 =  0. 279 + 0.3978=  0.6588

b. Probability that exactly one of the selected adults says that he or she was too young to get tattoos is calculated as

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P (x=0) = 0.12 ⁰(0.88)¹⁰10 C0  =  1* 0.279 * 1   =  0. 279

4 0
3 years ago
454 / 762 = ?
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Answer:

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Step-by-step explanation:

6 0
2 years ago
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