Suppose $250,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays $6000 at the end of each quarter. It will take about 120 quarters until the account balance reaches $0.
Amount invested (Present value) = $250000
Quarterly payment (At the end of each quarter) (P) = $4500
Interest Rate (Quarterly) (r) = 6% /4
= 1.5% = 0.015
A number of quarters (n) = ?
Future value at the end = 0
Present value of Annuity formula:
Present value = P × 
250000 = 4500 × 
250000 = 300000 × 
250000 / 300000 = 
0.83333 = 
n = 120
Hence is shall take 120 Quarters until the account balance is $0.
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Answer:
AA-rated revenue bond that is escrowed to maturity.
Explanation:
AA-rated revenue bond that is escrowed to maturity, is the bond recommendation for an individual who seeks income that is free from federal income tax. Escrowed to maturity bond are pre-funded municipal bond and it is backed by the government. The Issuer invests the new bond´s income too high credit securities and also issuer hold proceeds from the new bond issue in a separate escrow account to pay off existing bond when it matures.
Answer: GNP; GDP
Explanation:
<em>The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian </em><em><u>GNP </u></em><em>and the South Korean </em><em><u>GDP</u></em><em>. </em>
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
