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
katrin [286]
4 years ago
11

Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $37

,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.5%, what is the present value of John's future annual earnings?
Business
1 answer:
Sedaia [141]4 years ago
5 0

Answer:

$506,417.40

Explanation:

Period (N)= 35

Rate (I/Y) = 6.5%

Payment (PMT) = $37,000

Future Value = -

Using the PV Function on Ms Excel

The Present value = PV(N, I/Y, -PMT)

The Present value = PV(35, 6.5%, -37,000)

The Present value = 506,417.3991

The Present value = $506,417.40

Thus, the present value of John's future annual earnings is $506,417.40

You might be interested in
The business earns $700 of consulting revenue. how would these earnings affect the total equity of a business?
son4ous [18]

Answer: An increase in revenue will be an increase in equity.

Explanation:

Consulting Revenue is the total/gross revenue earned by a consulting company in an year. It should exclude the cost of material and sub-contracts.

Suppose we earned consulting revenue of $700. So it will increase the total revenue of the business.

Total equity is gross /total of the investment in the company plus subsequent profit of the company. Along with it we will exclude all subsequent paid out.

Rise in revenue will uplift the net profit. Increase in revenue will result in increase in equity.

To know more about consulting revenue, refer to this link:

brainly.com/question/14811584

6 0
2 years ago
Read 2 more answers
JeMarcus is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to
Butoxors [25]

Answer:

Place is the correct answer.

Explanation:

8 0
3 years ago
The government sometimes creates an excess demand for a product by setting a maximum price at which the product may be sold to c
nignag [31]
This is sometimes called a "price floor"
8 0
3 years ago
If ZipCar engaged in all the activities discussed in the video, but then sold customer data to a third party in a contradiction
Naya [18.7K]

Answer:

The correct option is: both socially responsible and ethical.

Explanation:

To begin with, the fact that the company sold customer data to a third party, even thought that it engaged in all the other activities as promised, it will make it to be both socially responsible and ethical and that is because in a court the judge will be in favour of the more weak party, that is the customer whose date was sold without his approval to a third party, and therefore that in social terms the company will be guilty. Also, that action will affect the company in terms of ethical because once that it is all known by the customers whose date was sold then they will start a campaign in order to destroy the company's ethical image by the public and that will cause a huge decrease in the sales.

5 0
3 years ago
Napoleon owns Napoleon's Construction. He agrees to renovate Mrs. Cernan's bathroom. According to Internal Revenue Service (IRS)
VMariaS [17]

<em><u>a</u></em><em><u>m</u></em><em><u>m</u></em><em><u>i</u></em><em><u> </u></em><em><u>s</u></em><em><u> </u></em><em><u>f</u></em><em><u>a</u></em><em><u>v</u></em><em><u>o</u></em><em><u>r</u></em><em><u>i</u></em><em><u>t</u></em><em><u>e</u></em><em><u> </u></em><em><u>s</u></em><em><u>p</u></em><em><u>o</u></em><em><u>r</u></em><em><u>t</u></em><em><u> </u></em><em><u>i</u></em><em><u>s</u></em>

<em><u>a</u></em><em><u>_</u></em>

8 0
3 years ago
Other questions:
  • Some goods can be produced at low cost only if they are produced in large quantities. this phenomenon is called
    7·1 answer
  • Runaround Corporation sells running shoes and during January they ran production machines for 23,000 hours total and incurred $
    6·1 answer
  • An American-style call option with six months to maturity has a strike price of $35. The underlying stock now sells for $43. The
    11·1 answer
  • Which of the following is NOT true? A. The financial statement which reports information helpful in calculating the current rati
    5·1 answer
  • What would happen if people decide to hold less money as currency and more as checking deposits
    12·1 answer
  • Meili's employer distributes checks at the end of each quarter, representing an equitable portion of 5 percent of the company's
    15·1 answer
  • The financial statements of the Bramble Corp. report net sales of $473850 and accounts receivable of $56000 and $25000 at the be
    12·1 answer
  • How good are we in business?
    10·2 answers
  • Ralph is leasing a $32,000 car for 36 months. The terms of his lease include an 8. 5% interest rate (money factor of 0. 00354) a
    12·1 answer
  • What is a dollar vote
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!