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Bezzdna [24]
3 years ago
10

Your grandparents would like to establish a trust fund that will pay you and your heirs $200,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 3.9 percent, how much must your grandparents deposit today
Business
1 answer:
lara31 [8.8K]3 years ago
8 0

Answer:

PV= $5,128,205.13

Explanation:

Giving the following information:

Annual cash flow= $200,000

Annual rate of return= 3.9% = 0.039

<u>We need to calculate the present value to be invested to obtain a perpetual annuity of $200,000. To determine the initial investment, we need to use the following formula:</u>

PV= Cf / i

PV= 200,000 / 0.039

PV= $5,128,205.13

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Bob Farrell works for a company that manufactures small appliances. Bob is paid $2.00 for each toaster, $4.60 for each microwave
BlackZzzverrR [31]

Answer: total wage per week = $7.56 (assuming he worked for 52 weeks and produced those units in a year)

Explanation:

 no.units wage per unit total wage wage per week

toaster  55 2                    110          2.115384615

microwave 37    4.6                   170.2          3.273076923

blender  73     1.55            113.15         2.175961538

total wage               393.35         7.564423077

8 0
3 years ago
Craig and Kris were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at
Andreas93 [3]

Answer:

does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses

Explanation:

From the question, we are informed about Craig and Kris who were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. This example illustrates the concept of coordination failure and in this case, This idea relates to macroeconomic instability because the economy does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses. Coordination failure can be regarded as failure that takes place as a result of group of firms want to achieve a more desirable equilibrium, but resulted to failure as a result of their decision making not been coordinated

8 0
3 years ago
The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annu
mihalych1998 [28]

Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

4 0
3 years ago
If your BAL is at .04
o-na [289]
It is 4.0 because your question does not make any sence



7 0
3 years ago
Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Cait
Nana76 [90]

Answer:

$94,080

Explanation:

Data provided in the question:

The partnership’s capital balances

Caitlin=  $128,000

Chris = $88,000

Molly = $108,000

Paul's equity = 20%

Amount invested by the Paul = $68,000

Now,

The total value of the capital = ∑ ( capital balances of each partner )

= $128,000 + $88,000 + $108,000 + $68,000

= $392,000

Therefore,

The balance in Paul's capital account immediately after Paul’s admission

= 20% of $392,000

= $78,400

Thus,

Balance in capital account for Caitlin, Chris, and Molly

= total value of the capital  - Balance in Paul's capital

= $392,000 - $78,400

= $313,600

also,

Share of Caitlin = \frac{3}{3+4+3} = 0.3

hence,

balance in Caitlin’s capital account immediately after Paul’s admission

= 0.3 × $313,600

= $94,080

4 0
3 years ago
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