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
Alexeev081 [22]
2 years ago
6

Sam was injured in an accident, and the insurance company has offered him the choice of $49,000 per year for 15 years, with the

first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity
Business
1 answer:
Eddi Din [679]2 years ago
4 0

Answer:

$464,968.53

Explanation:

Calculation to determine how large must the lump sum be to leave him as well off financially as with the annuity

Using Financial calculator to find the PRESENT VALUE (PV)

N 15 years

I/YR 7.5%

PMT $49,000 per year

FV $0

Hence;

PV= $464,968.53

Therefore how large must the lump sum be to leave him as well off financially as with the annuity is $464,968.53

You might be interested in
Why might one firm have positive cash flows and be headed for financial trouble?
Katena32 [7]
A cash flow statement merely describes the net change in a company's cash flow in investment, operational, and financial activities at a given period in time. As such, a bad debt in the company's portfolio cannot be reflected correctly in the cash flow statement. A company can also result to selling products at a much lower prices than it purchased them. While this is reflected in the cash flow statement, it does not translate into overall profitability of the concerned company.
6 0
3 years ago
\Why is it important to consider scholarships and grants before loans to pay for higher education?
Shalnov [3]

Answer:

Explanation:

Scholarships and grants are monies that are given to the student for education. You DO NOT have to pay them back.

Loans can also be given for education costs but you DO have to pay them back.  So, obviously, you want scholarships and grants before loans.

4 0
2 years ago
Craigmont Company's direct materials costs are $4,200,000, its direct labor costs total $8,080,000, and its factory overhead cos
USPshnik [31]

Answer:

$12,280,000.

Explanation:

All the direct costs involved in the manufacturing of a product except fixed cost is called prime cost e.g direct material, direct labor etc.

Direct Material = $4,200,000

Direct labor = $8,080,000

Total Prime cost = Direct material + Direct labor = $4,200,000 + $8,080,000 = $12,280,000

Overhead costs are not classified as the prime cost because these are indirect costs.

4 0
3 years ago
How does the payment of rent for equipment affect the accounting equation? assets increase; assets decrease assets decrease; sto
djverab [1.8K]
The answer to this question is <span>assets decrease; stockholders' equity decreases 

The journal for this transaction would be

Debit:  Rent expense       xxxxx
Credit:         Cash                                xxxx
 
 Since cash is considered an asset, it will decrease asset if it placed on credit.
 Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit     </span>
6 0
3 years ago
Read 2 more answers
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,600 per month plus $51 per boat. For the month of
Lyrx [107]

Answer:

The Correct answer is $85 U.

Explanation:

Spending change is the contrast among the real and expected (planned) measure of a cost  

Genuine Spending on cleaning equipment and supplies in April = $3,450  

Planned Spending in cleaning equipment and supplies in April = $2600 + $51 × 15 boat = $ 3365  

Difference among Budgeted and Actual is $ 85 for example abundance spending than planned subsequently this difference is Unfavorable  for organization.

7 0
3 years ago
Other questions:
  • A disadvantage of home ownership includes which of the following?
    13·1 answer
  • Ken purchases a box of cereal for $2.89, cheese for $5.04, lettuce for $1.93, and milk for $1.99. he has $15 with him. which est
    5·1 answer
  • Why is it important to use positive language in business messages​
    12·2 answers
  • Jeep launched the new Jeep Liberty several years ago. The Liberty is intended to compete with other moderately-sized SUVs. The m
    5·1 answer
  • "Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quan
    14·1 answer
  • ____________________ was a major reason why the United States changed more towards a mixed market economy.
    11·1 answer
  • A surplus of labor is synonymous with which of the following?
    13·1 answer
  • The process in which a test or battery of tests is administered to a different sample (drawn from the same population) for the p
    14·2 answers
  • Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premi
    13·1 answer
  • Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!