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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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3 years ago
Breadmakers, inc. produces and supplies fresh sandwich breads to various sandwich businesses. breadmakers has recently decided t
yarga [219]
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5 0
3 years ago
Leno Company sells goods to the Fallon Company for​ $10,000. It offers credit terms of​ 2/10, n/30. If Fallon Company pays the i
Zinaida [17]

Answer:

Leno Company will record a debit to Cash in the amount​ of: D. ​$9,800

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Fallon Company pays the invoice within the discount​ period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.

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Leno Company will record a debit to Cash in the amount​ of $9,800

6 0
3 years ago
how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
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Answer:

The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization.

Explanation:

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3 years ago
Laura is head of ABC Systems. She needs to allocate a fixed amount of funds to various projects. There are two top projects that
TEA [102]

Answer: A. dialectic method

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