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BaLLatris [955]
3 years ago
14

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $27,000 per year fo

rever. If the required return on this investment is 6.3 percent, how much will you pay for the policy? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g. 32.16.) Present value $ ________
Business
1 answer:
liberstina [14]3 years ago
5 0

Answer:

Present value = $428571.4286 rounded off to $428571.43

Explanation:

To determine how much should be paid for the policy today, we must calculate the present value of perpetuity. The policy returns are in the form of a perpetuity as they are paid in a constant amount after equal intervals of time and for an indefinite time period. The formula for the present value of perpetuity is,

Present value = Cash flows / r

Where,

  • r is the required rate of return

Present value = 27000 / 0.063

Present value = $428571.4286 rounded off to $428571.43

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________ unemployment is the natural movement of workers into and out of jobs, such as when a person quits one job without first
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The type of employment described above is FRICTIONAL UNEMPLOYMENT. Frictional unemployment is said to occur in an economy when the people move from one job to another. Frictional unemployment is always present in an economy because of temporary changes made by both workers and employers.
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3 years ago
Your parents bought their first car for $5,000. the price level in the year your parents bought their car was 50, while the pric
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3 0
3 years ago
As the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction needs the reaso
igomit [66]

Answer: See explanation

Explanation:

Based on the information given, we are informed that the co-worker has recorded a cash receipt twice and wants the full time bookkeeper to record a correcting entry that will reverse the mistakes.

Before making a decision about the correcting entry, it is necessary to check the entry and cross check the balances for sales and cash. One has to also check the receipts and every other necessary details in order to make sure that the transaction is genuine and not fraudulent.

After the through check, if the person is sure and confident that everything is okay, then the correcting entry can be made.

3 0
3 years ago
In a management information system (MIS), the quality of information is determined by its usefulness to users, and its usefulnes
Tcecarenko [31]

Answer:

The correct answer is True.

Explanation:

The proper functioning, within the normal standards of a GIS, means that the information can reach the hands of the decision makers. The quality of the information that arrives, is based on other procedures and structures that are previously defined in the organizational strategy, and its processing depends on the specialization and differentiation of the positions within the organization; that is, the data selected and analyzed by the human resources department is different from the information selected and analyzed by other departments such as marketing, for example (differentiation is shown); but on the other hand, the level of analysis and depth that is given to the information will be variable depending on the specialists and the hierarchical levels within the same department; for example, the depth in the analysis of the data of who occupies the position of Human Resources Manager, and who occupies the position of human resources practitioner (specialization is revealed), therefore the experience and degree of specialization for the objectives of the department, are filters for data analysis.

------

NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

3 0
3 years ago
Most goods in the economy are _____.(A) a natural monopolies. (B) public goods.(C) common resources. (D) private goods.
Angelina_Jolie [31]

Answer:

(D) private goods.

Explanation:

Goods is a material that, in economic theory, satisfies people's wishes and provides usefulness. Goods and services are different. In economic theory all goods are considered material, but in reality such goods as information (or information) are non-material goods. For example, although Apple is a tangible asset among other commodities, news is related to non-material class goods and can only be perceived through tools such as Computer and Printing. Material goods such as apples differ from non-material goods as information in terms of the impossibility of a person to keep the other physically, while the former occupies a certain physical area. Intangible goods differ from services in the sense that they are transferable or sold. Price elasticity also differentiates the types of goods. Elastic goods are commodities where there are major changes in quantities due to small changes in the price and, therefore, relate to the family of substitute goods; For example, consumers will prefer to buy pencils, such as pencil shields. Intangible goods are few and no substitutes, such as racing tickets, artist's original work, and medical supplies such as insulin. Complementary goods are more elastic than substitutes. It depends on which commodity is substituting or complementary to other goods.

Private goods are both excludable and rival in consumption. Most goods in the economy are private goods. A private commodity or goods is a product to be purchased for consumption and prevents the consumption of another by one person. In other words, when there is competition between people for the sake of good, good is something special or private, and consuming good prevents one from consuming it.

5 0
4 years ago
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