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mixas84 [53]
3 years ago
10

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo

rever. Suppose a sales associate told you the policy costs $476,000. At what interest rate would this be a fair deal?
Business
1 answer:
Whitepunk [10]3 years ago
3 0

Answer: 6.51%

Explanation:

To get the interest rate at which the deal will be fair

Annual payment per year/ cost × 100

Perpetuity = D/r

476000 = 31000/r

r = 31000÷ 476000

r = 0.06512

r = 0.06512 × 100

r = 6.512%

Where D is the dividend

r is the rate

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One possible reason as to why consumers respond to sales is that by displaying a "high" regular price and a "low" sale price, sa
Olenka [21]

Answer:

True

Explanation:

Experiments regarding consumer behavior have shown that consumers usually expect a product to have a certain price that serves as a reference price that they use to determine if a retailer's price is high (more expensive than the reference price) or low (cheaper than the reference price).

It is normal (but unethical) that some retailers increase their prices a little before starting a sales campaign, since a higher reference price will make consumers believe that the offer is even better.  

8 0
3 years ago
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs
pychu [463]

Answer:

Increase in income= $2,965.6

Explanation:

Giving the following information:

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is:

Materials $ 12,036

Labor 35,400

Variable overhead 23,128

Fixed overhead 47,200

Total $117,764

McGee Corporation offers Gruden $4.91 per disc for 4,930 discs. If Gruden accepts the offer, its fixed overhead will increase from $47,200 to $53,700 due to the purchase of a new imprinting machine.

Total variable cost= (12,036 + 35,400 + 23,128)= 70,564

Unitary variable cost= 70,564/23,600= $2.99

Increase in fixed costs= $6,500

Increase in income= (4930*4.91) - (4930*2.99) - 6500= $2,965.6

8 0
3 years ago
The ​short-run effect of consumers becoming more pessimistic will be for the
Bogdan [553]

Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.  

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.  

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

7 0
3 years ago
Which of the following are required by the Sarbanes-Oxley Act?
Taya2010 [7]

Answer:

a. a report on internal control

Explanation:

the sarbanes-oxley act was passed in 2002. This law serves to help protect investors and the public from fraud while giving financial reports by corporations. It was sponsored by Senator Paul Sarbanes and Representative Michael Oxley. This legislation is to help improve the reliability of corporations financial reporting as well as to help improve the confidence of shareholders and investors.

<u>This</u><u> </u><u>act</u><u> </u><u>requires</u><u> </u><u>a</u><u> </u><u>repo</u><u>rt</u><u> </u><u>on</u><u> </u><u>interna</u><u>l</u><u> </u><u>control</u><u>.</u>

5 0
3 years ago
(a) Explain the quantity theory and<br>(b) how does the theory explains the cause of inflation​
n200080 [17]
The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

It assumes an increase in money supply creates inflation and vice versa.
5 0
3 years ago
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