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Lelechka [254]
3 years ago
12

Sophia purchased a variable annuity contract with a purchase payment of $70,000. Surrender charges begin with 9 percent in the f

irst year and decline by 1 percent each year. In addition, Sophia can withdraw 12 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $13,700. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay
Business
1 answer:
Flura [38]3 years ago
4 0

Answer:

$477

Explanation:

Calculation to determine the surrender charge Sophia had to pay

Using this formula

Surrender charge = [Withdraw all amount - (Free withdraw all % x Account value)] x Surrender charge

Let plug in the formula

Surrender charge= [$13,700 - (0.12 x $70,000)] x 0.09

Surrender charge= ($13,700-$8,400)×0.09

Surrender charge=$5,300×0.09

Surrender charge=$477

Therefore the surrender charge Sophia had to pay is $477

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5 0
3 years ago
A firm claims on its website that it has been in the same location for over 50 years and has lower overhead than other firms bec
aliina [53]

Answer:

Lower overhead leads to lower prices and higher profit margins. However, fixed costs of acquiring the land are just one of the components of total overhead.

Explanation:

Overhead costs are costs that are not directly associated with running a business, like accounting or legal costs or in this case costs of acquiring land. Since these indirect costs vary and are not the same in every period, they are supposed to be measured monthly. However, small overhead definitely places a business in better position than the competition, as it can charge fewer price for its products and could lead to increase of profit margin. Bought land is just one of the factors that is included in these indirect costs, however if total overhead is really lower, than the firm's claims can be perceived as true.

3 0
4 years ago
Ravi has a business developing smartphone apps. Which of these answers the economic question How to produce?Spend a week working
lukranit [14]

Answer:

Select four new phones for app placement

Explanation:

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3 0
3 years ago
In a firm's income statement, interest payments on debt are deducted Blank______ corporate taxes are calculated, which Blank____
seropon [69]

<em>In a firm's income statement, interest payments on debt are deducted </em><em>before </em><em>corporate taxes are calculated, which</em><em> reduces</em><em> the firm's tax liability.</em>

<h3>Income statement: What is it?</h3>

An overview of the company's operations for a specific time period is provided in the income statement. The revenue (gross and net sales), cost of products sold, operational expenditures (selling and general and administrative expenses), taxes, and net profit or loss are the statement's primary components.

<h3>What is displayed on a firm's income statement?</h3>

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6 0
2 years ago
Landon is a senior manager for the firm Anderssen Inc. Because of his experience, he has been appointed to the board of EEC Inc.
Lapatulllka [165]

Answer:

Executive Director, Non Executive Director

Explanation:

Landon is a senior manager for the firm Anderssen Inc. Because of his experience, he has been appointed to the board of EEC Inc., even though he doesn't work for this firm. He also serves on the boards of several other companies. Landon is an Executive Director for Anderssen and a Non Executive Director for EEC.

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Operational refers to the daily running of a business.

8 0
4 years ago
Read 2 more answers
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