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Sindrei [870]
3 years ago
5

An insurance annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of 6.5 percent, com

pounded quarterly, what is the most you are willing to pay as a lump sum today to obtain this annuity
Business
1 answer:
bekas [8.4K]3 years ago
8 0

Answer:

the amount that willing to pay is $44,591.11

Explanation:

The computation of the amount that willing to pay is as follows:

The Present Value of an Ordinary Annuity is

= Amount × [{1 - (1 ÷ (1 + rate of interest)^n} ÷ rate of interest]

= $1,000 × [{1 - (1 / (1 + 0.065 ÷ 4)^100} ÷ 0.065 ÷ 4]

= $44,591.11

Hence, the amount that willing to pay is $44,591.11

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Answer: <em>Internal consistency</em>

Explanation:

In discipline such as research and statistics, internal consistency is referred to as or known as typically or usually a measure that is based on correlations in between different variable and items particularly on a same test or maybe on sub-scale on the larger test. It tends to measure whether variables and items that measure same construct do produce the similar scores.

6 0
3 years ago
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Mr.​ Seider, a shareholder in the Greenfield​ Corporation, owns 9 comma 000 shares of their common​ stock, which represents 32​%
sladkih [1.3K]

Answer:

32%

Explanation:

Since the question, it is mentioned that Mr. Seider owns 32% of the outstanding common stock of Greenfield Corporation. And, he also received the stock dividend of 10%.

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3 years ago
A government has a single-employer defined benefit pension plan for the employees of its Electric Utility Enterprise Fund. On De
Natasha_Volkova [10]

AnswerEnterprise Fund Dr. 1,300,000

Pension Fund CR. 1,300,000

Narration recognition of outstanding pension fund.

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To provide for the deficit

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4 years ago
Which of the scenarios is an example of co-branding?
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4 0
3 years ago
Mariah Company has inventory at the end of the year with a historical cost of $ 74 comma 000. Mariah Company uses the perpetual
Ostrovityanka [42]

Answer: Debit: Cost of goods sold $1400

Credit: Inventory $1400

Explanation: The lower of cost or LCM rule indicates that a company needs to value it's inventory at the end of the year at whatever cost is lower, between the actual cost of the inventory or its market price currently. This is in accordance with US GAAP.

In Mariah Company the historical cost, which is the actual cost of the inventory and thus what it is valued at in the books, is $74000. Replacement cost, which is how much it would cost to replace an asset based on market rates, is only $72600. The replacement cost is thus lower. Since the inventory is still valued at historical cost in the books, it will have to been written down to the replacement cost value. To do this the difference between both costs will need to be deduced. Difference is thus: $74000 - $72600 =$1400.

When write down occurs, this is expensed to cost of goods sold. This is because there is a decrease in closing inventories. If there is a decrease in this figure then it will lead to a subsequent increase in cost of goods sold, leading to it being debited to show this increase (remember the formula to calculate cost of goods sold). Inventory is credited as the value of this inventory has decreased, and inventories decrease on the credit side.

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