1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NeX [460]
3 years ago
9

Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $43,000 per year forever.

A representative for Curly’s tells you the policy costs $680,000. At what interest rate would this be a fair deal?
Business
1 answer:
evablogger [386]3 years ago
5 0

Answer:

rate = 6.3235%

At a market rate of 6.3235% this will be  a fair deal

Explanation:

under perpetuities the principal is never redeem. the investor receive cash payment for an indefinite period of time

This means:

perpetuities  present value = C/r

where:

C= annual payment

r= rate

680,000 = 43,000/rate

43,000/680,000 = rate

0.06323529 = rate

rate = 6.3235%

You might be interested in
Shelly, a sales manager at Best Computers, has recently moved from Dallas to Hong Kong for an expatriate assignment. Shelly is f
Alecsey [184]

Answer:

culture shock

Explanation:

It seems that Shelly is most likely experiencing culture shock. This is a set of feelings that occurs to most individuals when they move to a location that is very different than their home. Since Shelly moved from the US to China and the culture is completely different, it causes Shelly to not feel comfortable in this new location. Individuals experiencing culture shock experience many distinct feelings but ultimately adjust to the new environment and begin getting comfortable in this new location.

6 0
3 years ago
What significance does a fire’s point of origin have regarding the investigations of a suspected arson fire?
topjm [15]
Because from where they started they will be able to find out what caused the fire
6 0
3 years ago
Read 2 more answers
Responsible consumption requires _____
Leto [7]

Answer:

D. Considering whether a product is a need or a want.

Explanation:

By considering whether a product is a need or a want,we will be able to d prioritize our consumption. Needs are the fundamental survival requirements such as clothing, housing and food. They are indispensable.Wants on the other hand, are things that are not absolutely necessary but we require.

7 0
3 years ago
Discuss briefly how each of the following changes would affect the natural rate of unemployment.
Mariana [72]

Answer:

a. Schools operate for the full year, so no students are looking for summer work.

This will cause that the total labor force decreases, so the natural rate of unemployment will decrease. The natural rate of unemployment includes only structural and frictional unemployment. Since no students will look for summer jobs, then frictional unemployment will decrease, therefore, total natural unemployment will decrease also.

b. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential jobs.

This will help to decrease structural unemployment which will in turn decrease the natural rate of unemployment. Structural unemployment happens when an unemployed individual cannot find a job that fits his/her skills. Internet job postings will make it easier for unemployed people to find jobs that match their skills.

c. People who quit their jobs are drafted into low-wage community-service jobs.

This should reduce frictional unemployment (which reduces the natural rate of unemployment), since frictional unemployment is made up of people that quit their jobs in order to search a better job or are looking for their first job ever. If people realize that quitting their current jobs will result in them being drafted into low wage jobs, less people will quit their jobs. This doesn't mean that they will stop searching for a better, it means that they will continue searching for a better while still employed.

d. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.

This should motivate people to get any available job as quick as possible. Sometimes a person that is fired will not accept possible jobs because they consider that they can get a better job, so they decide to wait until they get the job that they want. If a bonus is given, a lot of people will be motivated to accept any new job that they can find as long as it allows them to collect the bonus. This doesn't mean that they will quit looking for their dram job or the job that they deserve, it means that they will be working while doing so. This should decrease the natural rate of unemployment.

4 0
3 years ago
Macroeconomic policy will be needed to address rising inflation. B There is sufficient aggregate demand to cause inflationary pr
Gala2k [10]

Answer:

The answer is A) Macroeconomic policy will be needed to address rising inflation.

Explanation:

Macroeconomics policy addresses key issues in the economy such as  the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.

The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

In the short term, it focuses on the way the economy performs as a whole and then analyzes how different sectors of the economy relate to one another to understand how the aggregate functions. This includes looking at variables like unemployment Inflation and how it reflect on the Gross Domestic product.

5 0
3 years ago
Other questions:
  • Hollandaise sauce contains mostly
    5·2 answers
  • A candy store sells boxes of candy containing caramels and cremes. Each box sells for $12.50 and hold 30 pieces of candy (all pi
    13·1 answer
  • Pharoah Company on July 15 sells merchandise on account to Sarasota Co. for $3100, terms 2/10, n/30. On July 20 Sarasota Co. ret
    13·1 answer
  • You have just received notification that you have won the $2.12 million first prize in the Centennial Lottery. However, the priz
    10·1 answer
  • Summarize the main points of a wise investment strategy
    15·1 answer
  • What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance acc
    5·1 answer
  • You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list
    15·1 answer
  • Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which
    9·1 answer
  • Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human
    11·1 answer
  • The scenarios each illustrate a principle of economics. classify each scenario according to the principle that best fits it. you
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!