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Westkost [7]
3 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]3 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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Answer: The correct answer is "Deployment".

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7 0
2 years ago
Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
lakkis [162]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Partnership

b) C Corporation

c) S Corporation

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e) Limited Liability Partnership

And the correct answer is the option D: Limited Liability Company.

Explanation:

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7 0
3 years ago
Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started
MAVERICK [17]

Answer:

$500 gain and $185 tax

Explanation:

Sale of share = No. of  NQOs × No. of shares  × Selling price per share

                      = 10 × 10 × $20

                      = $2,000

Basis = No. of  NQOs × No. of shares  × share price @$15

         = 10 × 10 × $15

         = $1,500

Gain realised = Sale of share - Basis

                      = $2,000 - $1,500

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The tax is calculated as follows:

= Gain realised × marginal tax rate

= $500 × 37%

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4 0
3 years ago
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3 years ago
Antoine recently received an email from a fraudulent organization that sought his personal financial account information. Recogn
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Answer:

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