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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

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Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. T
gladu [14]

Answer:

56.46%

Explanation:

The computation of the gross profit percentage is shown below

Gross profit percentage is

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where,

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And, the cost of goods sold is $344,600

Now placing these values to the above formula

So, the gross profit percentage is

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2 years ago
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REY [17]

Answer:

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8 0
2 years ago
Textbooks, transportation and room and board are all...
Alex777 [14]

Answer:

b. additional costs for attending a college or university.

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6 0
2 years ago
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Reil [10]

6/66

born with

talents

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You might also get to know other people who share your hobby, and this could help you build a career in that field.

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3 years ago
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frutty [35]

Answer:

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