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dedylja [7]
3 years ago
6

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th

e insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money.
1. Which option should you take and why?
A. You should accept the payments because they are worth $209,414 to you today.B. You should accept the payments because they are worth $247,800 to you today.C. You should accept the payments because they are worth $336,000 to you today.D. You should accept the $200,000 because the payments are only worth $189,311 to you today.E. You should accept the $200,000 because the payments are only worth $195,413 to you today.
Business
1 answer:
melamori03 [73]3 years ago
4 0

Answer:

From the given options, Option E is correct

Explanation:

The present value needs to be calculated in this case. As per the information that has been provided, the present value of monthly payments is calculated as follows

Present value of monthly payments =$1,400/(1+06%/12)+$1,400/(1+6%/12)^2 ....+$1,400/(1+06%/12)^240

=$195,413.08

E. You should accept the $200,000 because the payments are only worth $195,413 to you today.

Thus, the option E is correct from the given options

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Discuss the importance of index numbers in business
lesantik [10]

Answer: Index numbers are used to measure changes in the value of money. A study of the rise or fall in the value of money is essential for determining the direction of production and employment to facilitate future payments and to know changes in the real income of different groups of people at different places and times.

Explanation:

6 0
3 years ago
professional university teaches a large range of undergraduate courses. it is interested in determining the cost equation for th
Rufina [12.5K]

The equation for facilities cost (fc) as a function of student credit hours is 350000 + .60 per credit hour

<h3>How are facility costs calculated?</h3>

Ongoing operating expenses for the facility consist of property taxes, utilities, site maintenance and landscaping, insurance, and facility maintenance and repair costs. Add up the total amount spent on each expense category to determine its cost. Breaking down building costs reveals how much it really costs to run a business. More importantly, there's information about potential savings. Examples include building and equipment depreciation, operation and maintenance, administrative assistance, library services, and student services.

The variable cost per student credit hour = change in cost/change in credit hours

= [530000 - 500000] / [300000 - 25000]

= 30000 / 50000= $ .60 per credit hour

Fixed cost at highest activity = 530000 - [300000 * 0.6]

= 530000 - 180000

= 350000 Cost function

= 350000 + .60 per credit hour

To learn more about facility cost, visit: brainly.com/question/28336283

#SPJ4              

8 0
2 years ago
You observe a quotation of the Japnese yen of $0.007. You are, however, interseted in the number of yen per dollar. Thus, you ca
Salsk061 [2.6K]

Answer:

C. indirect; 142.86

Explanation:

Simply put, quotation shows the trading relation between two currencies. There are two basic types of quotation:

- direct quotation represents the value of foreign currency compared to domestic one (in this case a dollar). So, direct quotation represents the value of foreign currency in dollars.

- indirect quotation, on the other hand, does the opposite; it compares domestic currency (a dollar) to a foreign one. Or, indirect quotation represents the number of units of foreign currency per dollar.

So, with this in mind, number of yen per dollar is indirect quotation and its value is calculated when we divide 1 with direct quotation, which is 1/0.007, which equals to 142.86

8 0
3 years ago
The _____ perspective of management emerged several decades before the _____ perspective of management.
KIM [24]

Answer:

humanistic and contingency

You are welcome ;)

3 0
3 years ago
A company that asks candidates to engage in group discussions, business game simulations, presentations, and role play exercises
lina2011 [118]

Answer:

A company that asks candidates to engage in group discussions, business game simulations, presentations, and role play exercises, so that members of management may evaluate their performance capabilities is probably using this method of selection:

  • Assessment Center

Explanation:

  • Assessment Center method is such a method of selection in which the recruiting company measure the performance of the candidates by engaging them in different activities.
  • These activities can include business scenarios, job simulations, psychological tests etc.
  • For example, if a company is recruiting and for evaluation they ask the candidates to consider themselves in a particular role. Then they ask them how will they perform their duties. This is an example of assessment center selection method.
3 0
4 years ago
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