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MissTica
2 years ago
11

You are the beneficiary of a life insurance policy. the insurance company informs you that you have two options for receiving th

e insurance proceeds. you can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. you can earn 6 percent on your money. which option should you take and why
Business
1 answer:
lesantik [10]2 years ago
7 0

So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.

Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25

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Joshua is a highly accomplished soccer player and a successful coach. he is often hired by other coaches to run soccer clinics a
irina [24]

The area of law that he would need to be aware of with regard to the stock sales would be <u>"securities law."</u>


A security can be a: stock, which speaks to part responsibility for organization; bond, which resembles an "IOU" from an organization to an individual; or an alternative, which is the privilege to purchase something later on at a foreordained cost. Companies, governments, and people purchase and offer securities as a method for contributing and developing their cash.  

Choosing which sort of security to purchase and from which organization requires a decent arrangement of research and examination.

3 0
3 years ago
If u cause a car accident which type of insurance will require you to pay the least out of pocket?
PilotLPTM [1.2K]
A high deductible plan would work, just in case.
4 0
3 years ago
What are some things you want money can buy
Helen [10]

Answer:

I want a new car and a home.

Explanation:

6 0
2 years ago
A company's corporate code of ethics is a document given to a newly hired employee on the first day of work. Usually he is asked
harina [27]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

A Corporate Code of Ethics represents a set of business principles designed to regulate employee behaviour and to ensure that the mission and objectives of the company do not conflict. The most important ethical codes are listed below:

Integrity is a virtue.

Objectivity is a virtue.

Competence in the field.

Trustworthiness.

Professional conduct.

These are extremely important for us to maintain because they not only mark us as individuals, but also make us responsible employees of any organization that wishes to keep us together in the long run. WE MUST OBEDIENT TO THEM in order to ensure that, regardless of what we say or think, there will be a code of ethics that will help us to change over time and contribute to the progressive nature of things in our environment. This will also identify the IT firm employee, helping us to get a clearer understanding of the situation.

3 0
2 years ago
If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an a
Elan Coil [88]

Answer:

a. Annually equal instalment = Principal x rate x ( (1+rate)n / (1+rate)n -1 )

Explanation:

Accrding to the following formula, we calculate the anually equal instalment.

So, instalment = 56000 x 0.10 x ( (1.10)8 / (1.10)8 -1) = $10496.86498 ~ $10496.86

7 0
3 years ago
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