1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frozen [14]
3 years ago
13

You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years.

you could earn 5% on your money in other investments with equal risk. what is the most you should pay for the annuity?
Business
1 answer:
Dennis_Churaev [7]3 years ago
4 0
Hi there
Use the formula of the present value of annuity ordinary
The formula is
S=pmt [(1-(1+r)^(-t))÷r)]
S present value?
PMT payment per year 5000
R interest rate 0.05
T time 20

S=5,000×((1−(1+0.05)^(−20))÷(0.05))
S=62,311....answer

Hope it helps
You might be interested in
Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The p
Genrish500 [490]

Answer:

Detailed solution is given below:

7 0
3 years ago
Does wealth make you happy? Yes, No - explain the reason for your response
xz_007 [3.2K]

Answer:

yes it makes.although it doesn't buy love and affection. it fulfills our need which makes us happy.

7 0
3 years ago
Calculate Payroll An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume th
Marrrta [24]

Answer: $1750

Explanation:

Given Data

Earnings = $44/ hr

Overtime Earnings = 1.5 times Of $44

= $66

Hours worked during the week = 55 hrs

Social security tax rate = 6.0%

Medicare tax rate = 1.5%

Federal income tax = $633

Therefore:

Gross pay = Normal pay + overtime pay

Normal pay

= $44 * 40 hrs

= $1760

Overtime pay

= $66 * 15 hrs

= $990

Gross pay = $1760 + $990

= $1750

Social security tax

= 0.06 * $2750

= $165

Medicare tax

= 0.015 * $2750

= $41.25

Total tax

= $633 + $41.25 + $165

= $839.25

Net pay

= $2750 - $839.25

= $1910.75

6 0
3 years ago
What is in dynamic equilibrium ??????? I need it for my physical education exam​
choli [55]

Answer:

A dynamic equilibrium is a chemical equilibrium between a forward reaction and the reverse reaction where the rate of the reactions are equal.

Explanation:

8 0
3 years ago
An agreement to purchase goods and services with a specified percentage of proceeds from an original sale in that country from a
gizmo_the_mogwai [7]

Answer:

B)an offset.

Explanation:

4 0
3 years ago
Other questions:
  • When defining its market segments, the xyz company identifies groups based on characteristics such as age, gender, income, and e
    9·1 answer
  • Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and on
    12·1 answer
  • Tailoring movies slightly to appeal to different markets, such as editing Iron Man 3 for China, best reflects which kind of inte
    14·1 answer
  • Which of the following arguments are inductive, and which are deductive? Just answer "inductive" or "deductive".
    5·1 answer
  • What guidelines will you develop for supervisors to successfully respond to employee questions about unionization? What can your
    15·1 answer
  • In the month of March, Sandhill Salon services 630 clients at an average price of $120. During the month, fixed costs were $26,1
    10·1 answer
  • Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per c
    9·1 answer
  • Community hospital of the west is experiencing changes occurring throughout the facility, many of the employees are concerned ab
    11·1 answer
  • Economic impact of offshore banking in malaysia
    15·1 answer
  • What do it feel like working at footlocker?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!