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fredd [130]
3 years ago
15

You have a chance to buy an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on your mone

y in other investments with equal risk. What is the most you should pay for the annuity?
Business
1 answer:
katen-ka-za [31]3 years ago
8 0

Answer:

$6,972.70

Explanation:

The computation of the annuity paying amount is shown below:

= Buying amount of annuity × annuity rate for 3 years at 5.5%

= $2,450 × 2.846

= $6,972.70

Refer to the annuity table

Simply we multiplied the buying amount with its annuity rate for 3 years at 5.5% so that the accurate amount can come i.e annuity paying amount

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quilibrium in the money market exists when a. excess demand for money is equal to the quantity demanded of money at a given inte
Elanso [62]

Answer: b. excess supply of money is equal to the quantity demanded of money at a given interest rate.

Explanation:

Equilibrium in the money market takes is usually achieved when the quantity of money demanded is equal to the quantity supplied. The demand curve for money is used to illustrate the quantity of money demanded at a given interest rate. The demand curve for money usually sloped downward, what this tells us is that people would want to hold less of their wealth in the form of physical cash ( money ). When the interest rates on bonds and other alternative investments are way higher.

3 0
3 years ago
Consider the case of the Henderson Company.
sashaice [31]

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

7 0
3 years ago
Read 2 more answers
The chart shows a sample paycheck stub. The chart shows that federal and state taxes are added to employee pay. Withheld from em
skelet666 [1.2K]

Answer:

Withheld from employee pay.

Explanation:

Your paycheck stub should show the following withholdings:

1) The Federal Insurance Contributions Act (FICA) taxes include:

  • Social security tax rate for employees is 6.2% (for all income up to $132,900)
  • Medicare tax rate for employees is 1.45% (for all income up to $200,000, above that an extra 0.9% is collected)

2) Federal income taxes (depends on income bracket)

3) State income taxes (depends on state taxes and income brackets, not all states collect them)

4) any other local or city taxes

6 0
3 years ago
Read 2 more answers
In december 1994 a man in ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (his deposi
Yakvenalex [24]
<span>If in December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years, then his transactions deposits will be $8,000,000, his total reserves will be all in all 8 million pennies.</span>
4 0
2 years ago
Sarah Gray wants to invest a certain sum of money at the end of each year for five years. The investment will earn 4% compounded
guajiro [1.7K]

Answer:

How should she compute her required annual investment?

$ 36.987  

Explanation:

With the present value formula we can calculate how she has to invest today to get $45,000 at the end of the 5 years, with a compounded rate of 4%.

Principal Present Value  =  F /  (1 + r)^t  

In this case we have the future value and we need to find the present value that we have to invest to get the money expected.

Principal Present Value  =  45,000 /  (1 + 4%)^5 = $36,987  

If we invest today $36,987, with a compounded interest rate of 4% we get at the end of the period, 5 years, the total sum of $45,000.

5 0
3 years ago
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