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
Arte-miy333 [17]
3 years ago
13

Your friend offers to pay you an annuity of $2,500 at the end of each year for 3 years in return for cash today. You could earn

5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Business
1 answer:
VladimirAG [237]3 years ago
3 0

Answer:

Annuity per period (A) = $2,500

Interest rate (r) = 5.5% = 0.055

Number of years (n) = 3 years

Present value (PV) = ?

The amount to be paid for the annuity

PV = A<u>(1 + r)</u>n - 1

             r

PV = $2,500<u>(1 + 0.055)</u>3 -  1

                       0.055

PV = $2,500<u>(1.055)3 - 1</u>

                       0.055

PV = $2,500<u>(1.174241375 - 1)</u>

                        0.055

PV = $2,500 x 3.168025

PV = $7,920.06

Explanation:

The present value of an annuity equals annuity per period multiplied by present value of annuity factor at 5.5% for 3 years. In this case, the annuity per period, interest rate and number of years were provided in the question with the exception of present value. The present value becomes the subject of the formula.                  

You might be interested in
50 points !!!!! Please help me!!! This is about Simple path to wealth by JL Collins
Irina18 [472]

Answer:

sorry need koren po ng point kasi mag a ask lang din nmn po ako thnks po:(

6 0
3 years ago
The burial of porky logan is considered the turning point of randy’s character, if not the novel as a whole. why might this be t
svetlana [45]
<span>Logan's burial might be considered a turning point in the novel because it is the point at which the democratic process and reasoning are completely abandoned for the attitude that force matters more than good intentions do.

Porky's burial is the first time that Randy actually has to force people to do the right thing. Porky's body is a menace.... it could cause an epidemic that could affect everyone, and no one wanted to be a part of it.... but Randy got it done, and he had to pull his pistol to do it.

The last sentence is significant in illustrating the road ahead: "The engine started and Randy turned away to face the thousand-year night"</span>
5 0
3 years ago
One advantage of preferred stock over common stock is that preferred stockholders
OleMash [197]
I believe the answer is A
6 0
3 years ago
A tax free municipal bond provides a yield of 3.2%. What is the equivalent taxable yield on the bond given a 35% tax bracket
lutik1710 [3]

Answer:

4.92%

Explanation:

Equivalent taxable yield on the bond = Rate / (1-Tax rate)

= 3.2% / 1 - 0.35

= 0.032 / 0.65

= 0.049230

= 4.9230%

= 4.92%

3 0
3 years ago
Economic growth due to labor force expansion or capital investments will result in?
Hatshy [7]

Economic growth due to labor force expansion or capital investments will result in A rightward shift in long-run aggregate supply.

In general, economic processes occur as a results of increases within the production of products and services. Increased consumer spending, increased international trade, and businesses that increase their investment in capital spending can all impact the amount of production of products and services in an economy.

Because savings and investment increase the stock of capital, more investment in capital results in more economic processes. the quantity and quality of labor: As long as the capital per worker doesn't decrease, more labor results in more production.

A peak occurs when expansion reaches its climax. With an outsized sum of demand for goods, inflation occurs where costs begin to extend. Human capital affects economic processes and might help to develop an economy by expanding the knowledge and skills of its people.

Broadly speaking, there are two main sources of economic growth: growth within the size of the capital investments workforce and growth within the productivity (output per hour worked) of that workforce.

learn more about capital investments: brainly.com/question/1343622

#SPJ4

5 0
2 years ago
Other questions:
  • According to the cost-push theory , what is responsible for inflation?
    7·2 answers
  • A _____ is an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization.
    12·1 answer
  • Cyberhost Corporation's sales were $225 million last year. If sales grow at 6% per year, how large (in millions) will they be 5
    9·1 answer
  • Due to the limited range of input and interaction among participants, few companies believe that a joint application development
    10·2 answers
  • The liquidity trap refers to the
    14·1 answer
  • The government provides _____ to increase competition in the marketplace.
    5·2 answers
  • g Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each
    5·1 answer
  • Amaste manufactures yoga props such as straps and blocks. Straps are sold tocustomers at a price of $15 per strap. The company i
    7·1 answer
  • If $25,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected
    10·1 answer
  • ​_______ is the use of​ online, mobile, and social media to engage​ customers, build stronger customer​ relationships, and augme
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!