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
Nitella [24]
3 years ago
8

Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You nee

d money today to start a new business, and your uncle offers to give you $156,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment
Business
1 answer:
sleet_krkn [62]3 years ago
7 0

Answer: 2.72%

Explanation:

An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.

Number of payment period (NPER) = 12 years

Payment per period (PMT) = $15000

Amount needed, PV = $156000

The formula for an annuity is calculated as:

P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)

= Rate(12,15000,-156000,1)

Rate = 2.72%

You might be interested in
Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade
Airida [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

8 0
3 years ago
Theory x in business
scoray [572]
Motivation. Theory X<span> assumes that people dislike work; they want to avoid it and do not want to take responsibility.</span>Theory<span> Y assumes that people are self-motivated, and thrive on responsibility.</span>
4 0
3 years ago
Firms in every market structure: make long-run economic profits. are in competition with many other firms. leave the market as s
aliya0001 [1]

Answer:

b. False

Explanation:

Firms are not in competition with many other firms in every market structure. Some market structures such as monopolies or oligopolies feature either one single firm, or only a few firms, that frequently collude instead of competing.

Not all firms leave the market as soon as they lose profits. Some do, but others stay. A monopoly can survive decades without increasing its profits.

Not all firms will try to maximize profits, some will try to maximize market share instead, especially in perfectly-competitive market structures.

Not all firms face a horizontal demand curve. In some market structures, demand can be very dynamic, either sloping upwards (increasing) or downwards (decreasing).

4 0
3 years ago
Duane has a small woodworking business and saves the money for college. He stores his tools in his apartment. Duane would like t
klasskru [66]

Answer:

First option is the right choice.

Explanation:

He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.

Visit: gotit-pro.com for fastest, top-notch and impeccable homework and exams help in a range of subjects and ace your academics.

Thanks and Best Regards: Your Friendly Study Co-Pilot

8 0
3 years ago
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 2
Dovator [93]

Answer: $413.81

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

Price of bond = Present value of annuity + Present value of face value

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

8 0
3 years ago
Other questions:
  • Fixed financial charges include ________. stock repurchase expense common stock dividends and bond interest expense common stock
    11·1 answer
  • Arden has designed an artistic design to complement his product's name to assist customers in identifying his product. these are
    8·2 answers
  • What can effective and efficient supply chain management systems enable an organization to accomplish?what can effective and eff
    7·1 answer
  • What is consumer vigilance? Select the best answer from the choices provided. A. being aware of risks to consumers B. being fear
    12·1 answer
  • Which of the following is an advantage of using the Clipboard task pane?
    12·2 answers
  • When Americans buy goods produced in Canada, Canadians earn income from American expenditures. Does the value of this Canadian o
    14·1 answer
  • Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for develop
    5·1 answer
  • Relationship between public and private sector in mixed economy?​
    14·1 answer
  • During its first year of operations, Mack's Plumbing Supply Co. had sales of $580,000, wrote off $9,300 of accounts as uncollect
    13·1 answer
  • Bond P is a premium bond with a coupon rate of 8.2 percent. Bond D is a discount bond with a coupon rate of 4.2 percent. Both bo
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!