The 3 major functions are operating, financing and managing a business organisation
Answer:
The amount I can afford to spend each year is $133,241.15
Explanation:
The amount I can afford to spend each year can be determined using the formula for present value of annuity due which is given below:
PV(Annuity due)=A*(1-(1+r)^-N)/r
PV is the present value of the investment which is $1.5 million
A is the annual spending which is unknown
r is the rate of return on the investment at 8% per year
N is the duration of investment which is 30 years
The formula can be rewritten as
A=PV/(1-(1+r)^-N)/r
(1-(1+r)^-N)/r=1-(1+8%)^-30/8%
=1-(1+0.08)^-30/0.08
=(1-0.099377333
)/0.08
=11.25778334
11.25778334 is known as annuity factor
A=$1500000/11.25778334
A=$133,241.15
Complete Question:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:
Group of answer choices
A) the safety of the principal invested.
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
C) the yield is always higher than mortgage yields.
D) the yield is always higher than bond yields.
Answer:
B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Explanation:
An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.
Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.
Answer:
He would encourage her to cut the cost on her apartment, by choosing a cheaper apartment.
Explanation:
According to the statement in the question, Mariah saved a total of $15,000, and wishes to make a down payment of $10,000 on house alone. $10,000 is approximately 67% of the total savings. From further description of the house, we find out that she has a spare bedroom in her apartment which she will also pay for as part of the house payment but she will not use, and Mariah is single. If $10,000 dollars go into her apartment alone, the balance of $5,000 dollars will be insufficient to pay for the other expense which includes; the cash outflow of $2,800, the contribution to a retirement plan, care and life insurance policies and purchase of furnishings, not to talk of the other bills like groceries, cable, water etc. even with her monthly income of $3,200, she will run into debt. Hence she will be advised to settle in a cheaper apartment.
The decision that a mediator reaches during settlement talks is non-binding.
