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yarga [219]
3 years ago
14

We Pay Insurance Co. will pay you $1,050 each quarter for 22 years. You want to earn a minimum interest rate of .83 percent per

quarter. What is the most you are willing to pay today for these payments
Business
1 answer:
Yuki888 [10]3 years ago
8 0

Answer:

The answer is $65,382.03

Explanation:

The payment is quarterly, meaning, the interest will be paid 4 times in a year

N(Number of periods) = 88 times ( 22years x 4)

Interest rate = 0.83percent

PV(present value or market price) = ?

Annuity = $1,050

We are using a Financial calculator for this.

N= 88; I/Y = 0.83; PMT = 1.050; CPT PV= -65,382.03

Therefore, the market price of the bond is $65,382.03

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A family spends $40,000 on living expenses. With an annual inflation rate of 6 percent, they can expect to spend approximately _
il63 [147K]

Answer: $42,400

Explanation:

The family currently spends $40,000 on living expenses.

Inflation is expected to be 6% and as Inflation is used to refer to the general rise in prices, this means that the family will be spending 6% more in one year.

They will therefore be spending;

= 40,000 * (1 + 6%)

= $42,400

7 0
3 years ago
Which financial activity helps a company based in another country?
AlekseyPX
The financial activity that helps a company based in another country is : A. Foreign direct investment

Foreign direct investment is a type of investment in the form of ownership of a business entity by an entity in another country. For example : Berkshire Hathaway ownership of a an entity in Indonesia
7 0
3 years ago
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Which one of the following firms would be described as having below-average sensitivity to the state of the economy?
Wewaii [24]

Answer: A) A defensive firm

Explanation:

Defensive firms have a below-average sensitivity to the state of the Economy which is shown by them maintaining stable returns regardless of if the Economy is in boom or in a recession.

Because of this their stock are highly sough after in Recessions as opposed to Booms because in Recessions they offer better returns than other types of firms but in Booms they will offer lower.

Examples of such firms include those that supply human necessities such as electricity and water.

4 0
3 years ago
In the context of organizational behavior, _____ stressed the value of participative management. henri fayol peter drucker adam
Ray Of Light [21]
Henri Fayol stressed the value of participative management<span>. Henri Fayol's administration hypothesis is a straightforward model of how administration communicates with the work force. Fayol's administration hypothesis covers ideas extensively, so any business can apply his hypothesis of administration. Today the business group considers Fayol's established administration hypothesis as a significant manual for profitably overseeing staff.

</span>
7 0
3 years ago
If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged?
maxonik [38]

Answer:

demand curve shift right means price intersects lower and quantity is increased

Explanation:

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7 0
2 years ago
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