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nadezda [96]
3 years ago
7

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minim

um interest is set at 3%. During an economic downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its policyholders?
a. 3% regardless of what the investment draws since that's the guaranteed rate
b. 2.5%
c. 3%
d. 3% this payment. The over payment this time will be subtracted from the next time the rate exceeds the 3%
Business
1 answer:
tatyana61 [14]3 years ago
3 0

Answer: c. 3%

Explanation:

The Insurance company guaranteed that the minimum rate that they will pay their policyholders as 3%. Just because the investments are now drawing only 2.5% due to the economic downtown does not absolve them of this agreement.

They must therefore still pay their policy holders the minimum return guaranteed which is 3%.

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Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be repor
Mazyrski [523]

Answer:

The answer is E. In financing activities as a use of funds.

Explanation:

In cash flow, to be a source of fund means there is cash inflow i.e cash is coming in to the business and to be a use of fund means there is cash outflow i.e cash is going out of the business the business.

Also in cash flow, we have three sections - operation, investing and financing sections.

For cash flow from operating activities, use of fund or source of fund about how a business carries its normal activities are important here.

Cash flow from investing activities is about long term Investment the company is engaging on e.g sale or Purchase of machinery.

Cash flow from financing activities is about how the company is funding the business or how the firm is repaying its shareholders for using their fund e.g payment of dividends(use of fund i.e cash outflow)

4 0
3 years ago
Lupe made a down payment of $2200 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a
BlackZzzverrR [31]

Answer:

Cash price of the car

= Down payment + A(1 - <u>(1+r/m)</u>-nm

                                            r/m

= $2,200 + $200(1-<u>(1+0.11/12</u>)-4x12

                                  0.11/12

= $2,200 + $200(1-<u>(1+0.0091666667</u>)-48

                                0.0091666667

= $2,200 + $200(1-(<u>1.009166666667</u>)-48

                               0.0091666667

= $2,200 + `$200(38.691421)

= $9,938

Explanation:

The cash price of the car is equal to the down payment plus the present value of the monthly installment.  The present value of the monthly installment is obtained by using present value of annuity formula.

7 0
3 years ago
One method used by some analysts to estimate the future value of a stock is the dividend growth model. This model would probably
Ray Of Light [21]

Answer:

I am sure that it is D. a large cap stock

Explanation:

Large cap stocks already have a positive growth sentiment and

based on how much dividends are paid out they can estimate the future

value of a stock.

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If Country A is an agricultural country and Country B has many cities and factories, it would make sense for
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Country A to specialize in growing corn while country B specializes in making cars

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Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new
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The implied quality weight is 6/10 = 0.6. A year lived with chpitis scars is only 60% as satisfying as living a year in full health.
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