Answer:
$0
Explanation:
Since Harry chose a non qualified tax deferred annuity, upon his death all annuity payments will stop and his beneficiaries wouldn't receive any money.
For Lucile to receive any money after Harry's death, he should have chosen another type of annuity, like an annuity with 10 or 20 years certain.
Answer:
$857
Explanation:
Calculation for the present value
Using this formula
Present value = FV / (1+ r)^ n
Let plug in the formula
Present value= 1,000 / (1+.08)^2
Present value= 1,000 / (1.08)^2
Present value= 857.34
Present value=$857 (Approximately)
Therefore the Present value is $857
The U.S. economic system relies on key economic indicators such as gdp, to measure economic progress. The U.S. economic system predicts how the system will look in the future by past and current market trends. The GDP, gross domestic product, is the total value of goods and services that are provided within a country during a single year. The factors are studied yearly and used for many different predicitors for years to come.
Answer: 13.25%
Explanation:
The expected portfolio return can be calculated as follows:
= (Expected return of stocks * Weight of stocks) + (Expected return of bonds * Weight of bonds)
= (15% * 75%) + (8% * 25%)
= 11.25% + 2%
= 13.25%
Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010