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zimovet [89]
3 years ago
5

Your first baby was born yesterday and is healthy and strong. To guard against your premature death, you want to purchase a life

insurance policy that will replace $58,000 of your annual income until your child is 20 years old. How much life insurance should you purchase, if you assume a 3% inflation rate
Business
1 answer:
jeka57 [31]3 years ago
3 0

Answer:

assuming the  interest rate is = 15% the  life insurance should you should purchase = $497854.0773

Explanation:

Given that :

Annual income receipt = $58000

Assumption:

If we assume that the inflation rate π = 3% = 0.03

Also , let assume that the interest rate is = 15%  = 0.15 since it is not given too

Then the effective interest rate = \dfrac{ (i-\pi)}{(1+\pi)}

the effective interest rate = \dfrac{ (0.15-0.03)}{(1+0.03)}

the effective interest rate = \dfrac{ (0.12)}{(1.03)}

the effective interest rate = 0.1165

the effective interest rate = 11.65%

Since n = \infty

The Principal amount of how much life insurance should you purchase is;

= Annual income receipt/the effective interest rate

= $58000/ 0.1165

= $497854.0773

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Answer:

$27,400 and $59,600

Explanation:

The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:

Depreciation expense is

= (Purchase cost - residual value) × useful life ÷ sum of years

= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)

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And, the book value is

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8 0
3 years ago
The goal of expansionary fiscal policy with respect to output is to: Multiple Choice increase spending and shift aggregate deman
soldier1979 [14.2K]

Answer:

Increase spending and shift aggregate demand to the right in an effort to reach full employment output.

Explanation:

The goal of expansionary fiscal policy with respect to output is to reduce the problem of unemployment. In order to let this work, the government must increase its spending or Decrease the tax rate. This will make the Aggregate Demand Curve to the right which is a proof of increasing real Gross Domestic Product (GDP) as well as gradual reduction of unemployment.

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Peterson Company purchased machinery for $960,000 on January 1, 2014. Straight-line depreciation has been recorded based on a $6
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When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to?
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When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.

This is further explained below.

<h3>What is a firm?</h3>

Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.

In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.

Read more about the firm

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Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce
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Answer:

<h2>The United States has the comparative advantage in car production.</h2>

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