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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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Yes it did I’m just tryna get the app bro
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3 years ago
Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company
zavuch27 [327]

Answer:

The current share price is $60.97

Explanation:

The values given are

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Therefore, the current share price is

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8 0
3 years ago
On July 1, 2021, an interest payment date, $153000 of Oriole Company bonds were converted into 3070 shares of Oriole Company com
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Answer:

$17,900

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= ($153,000-$5,900-(3070*45))*2

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3 0
4 years ago
At one time there were many farm cooperatives, but more recently other forms of business ownership have replaced them. true fals
Mashcka [7]

Answer:

The answer is False

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3 0
3 years ago
Read 2 more answers
At December 31, 2017, the available-for-sale debt portfolio for Carla, Inc. is as follows. Security Cost Fair Value Unrealized G
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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
4 years ago
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