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Westkost [7]
4 years ago
8

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 $50,000 today or receive payments of $641 a month for ten years. You can earn 6.5% on your money. Which option should you take and why? you should accept the payments because they are worth $56,451.91 today. you should accept the payments because they are worth $56,523.74 today. you should accept the payments because they are worth $56,737.08 today. you should accept the $50,000 because the payments are only worth $47,757.69 today. you should accept the $50,000 because the payments are only worth $47,808.17 today.
Business
1 answer:
Ronch [10]4 years ago
5 0

Answer:

you should accept the payments because they are worth $56,451.91 today

Explanation:

We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn

Then, the value of the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 641.00

time 120 (12 months x 10 years)

rate 0.005416667

641 \times \frac{1-(1+0.00541666666666667)^{-120} }{0.00541666666666667} = PV\\

PV $56,451.9083

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Maksim231197 [3]
I think its D). Philanthropy means the love of mankind. In this case an allowance means you generously giving money to your child because you care about them and their happiness. a paycheck means you care for your employees, and gifts come from the heart.
4 0
3 years ago
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Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest compe
dangina [55]

Answer:

C) The demand for analgesic drugs in the Terranian market is expected to remain stable.

Explanation:

The options were missing:

  • A) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
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  • D) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
  • E) The Terranian market for healthcare products is expanding rapidly.

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3 0
3 years ago
Producing goods only enough to meet the basic needs of the family is called
zepelin [54]

Answer:

Domestic production

Explanation:

  • Domestic production means we make things only to satisfy our household needs of family.
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8 0
3 years ago
Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which of these statements dec
kodGreya [7K]
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5 0
4 years ago
You would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, r
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Answer:

$20,650.00

Explanation:

In the equity market, when shares are being bought there are usually bids submitted that will determine the buying price, so bid price is the price at which a share is bought. In this case it is $103.25.

When selling shares the price at which it is sold is the ask price.

Therefore the price for buying the IBM shares= Bid price* Quantity

= 103.25 * 200= $20,650

5 0
3 years ago
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