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
klasskru [66]
3 years ago
6

The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte

rest rate of 5 percent.The balance at the end of seven years is paid to the beneficiary in 120 equal monthly payments of X, with the first payment made immediately. During the payout period, interest is credited at an annual effective interest rate of 3 percent.Calculate X.
Business
1 answer:
11111nata11111 [884]3 years ago
5 0

Answer: $135

Explanation:

First find the future value of the proceeds.

= 10,000 * (1 + 5%)⁷

= $14,071

The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.

Convert the interest rate into monthly figure:

= 3%/12

= 0.25%

Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)

14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)

14,071 = Annuity * 103.82

Annuity = 14,071 / 103.82

= $135.53

= $135

You might be interested in
Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books so
Westkost [7]

Answer:

539,000.00  

Explanation:

As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.

For Etuck327,

The selling price is $39

Variable expense is $28

Break-even in units is 49,000 books.

Contribution margin per unit = selling price - variable costs

=$39- $28

=$11

if Break-even = fixed cost/ contribution margin per unit, then

49,000= fixed cost / 11

fixed costs = 11 x 49000

Fixed costs = 539,000.00    

                   

5 0
3 years ago
You earn $50,000 per year, and paid 10 percent in taxes this year. The government increased the tax rate to 20 percent for next
AleksAgata [21]

Answer:

D. $10,000

Explanation:

The answer is D because as you earn $50,000 every year, and for the next year the tax rate is 20%, 20% of $50,000 is $10,000. Hope it helps!

8 0
3 years ago
"The nature and purpose of the public sector result in a unique organizational characteristics". Discuss
alex41 [277]

The correct answer to this open question is the following.

Although the question is incomplete because it does not provide the location, country, or any other further reference, we can say the following.

The nature and purpose of the public sector result in unique organizational characteristics, basically in the formation of bureaucracies that are a form of governmental and administrative organizations with many employees and hierarchies that more that improve management and operations, complicate it and make it slow due to the fact that the number of people working is numerous.

Experts say that this is not the more efficient and effective form of managing governmental offices. On the contrary, it is slow and inefficient.

3 0
3 years ago
A new competitor enters the industry and competes with a second​ firm, which had been a monopolist. the second firm finds that a
olganol [36]
The second firm finds that though demand is not perfectly elastic, it is now comparatively more elastic. The second firm marginal revenue will be more elastic and its profit maximizing price will be lower. A monopolist probably also considers in policies that indulgence monopolies since it gives them greater power. A monopolist has slight incentive to progress their product because customers have no replacements. Instead, the motivation is dedicated on defending the monopoly.
3 0
3 years ago
Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The nego
Assoli18 [71]

Answer:

Land $434,696

Land improvements $108,609

Building $1,720,600

   To Cash $2,263,905

(Being the amount paid in cash is recorded)

Explanation:

The journal entry is shown below:

Land $434,696

Land improvements $108,609

Building $1,720,600

   To Cash $2,263,905

(Being the amount paid in cash is recorded)

The land, land improvements and the building increases the assets so it is debited while the cash is credited as the cash is paid

The computation of the land is shown below:

= Purchase price of the land + purchase price for the old building + paid amount for tear down the old building + cost to fill and level the lot

= $224,000 + $119,000 + $37,000 + $54,696

= $434,696

7 0
3 years ago
Other questions:
  • "________ is an area that allows member states to freely move components of production such as capital and labor across borders"
    15·1 answer
  • "PDQ Corporation has declared a rights offering to stockholders of record. The company has 5,000,000 shares outstanding and is s
    6·1 answer
  • On October 25, 1989, Mina Loy sent a letter to Carl Van Vechten which said, "I hereby offer to hire you to paint my house for $4
    11·1 answer
  • on January 31,2009,Village Bank had 500000 shares of $2 par value common stock outstanding. On that date the company declared a
    14·1 answer
  • Suppose that there are significant costs associated with coordinating a subsidiary with the parent organization and assessing th
    8·2 answers
  • Assume that the plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his inj
    7·1 answer
  • at the end of the year, the walt disney company has a profit of $920 million. this profit belongs to which of the following grou
    15·1 answer
  • Barney decides to quit his job as a corporate accountant, which pays $10 890 a month, and goes into business for himself as a ce
    12·2 answers
  • Jim and Allison both scored in the bottom 20% of IQ tests; however, Jim went on to complete a 4-year college degree, whereas Ali
    11·1 answer
  • Sandhill Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 11 paid vacatio
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!