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
To avoid potential liability for misconduct in corporate operations, directors can refrain from reasonable supervision of work d
Ber [7]

Answer:

c. corporate officers.

Explanation:

In the case when the potential obligation is to be avoided for any misconduct while having operations in the corporate so the directors could refrain from the supervision of the delegated work to the corporate officers so that the work could not harm that result in help in attains the goals & objectives

Therefore the option c is correct

4 0
3 years ago
Breyer's introduced for sale a new line of ice cream flavors in elegant black containers. This was done on a limited scale to de
Archy [21]

Answer: market testing      

                                     

Explanation: In simple words, market testing refers to the process in which a product is tested in real situation with actual potential customers before introducing it to the market. Market testing is usually done for the purpose of detecting problem so that appropriate changes could be made in the product.

In the given case, the company introduced its ice cream to only few numbers of customers to evaluate their reactions.

Hence that were at market testing stage

7 0
3 years ago
Job-Order Cost Sheets, Balance in Work in Process and Finished Goods Prull Company, a job-order costing firm, worked on three jo
vladimir1956 [14]

Answer:

Attached is the solution.

5 0
3 years ago
In two to three sentences, give examples of ways employees can take initiative.
yawa3891 [41]
In order for employees to take initiative is to give them something to work for. For example, you can offer a reward for all his/hers hard work. Another example would be the employee of tge month benefits, and dont just give them a better parking spot. One of the best ways for employees to take intiative is just by showing them some respect and showing you care about them.
8 0
3 years ago
Read 2 more answers
You are a senior manager at a U.S. automobile company investing in production facilities in China, Russia, or Germany. These fac
Dvinal [7]

Answer:

In general, China, Russia and Germany are three big countries; the automobile company will get benefits if it chooses any of the three countries, but it also faces some challenges. It is well known in Germany that the automobile industry is very powerful. If the company chooses to invest in Germany, it will face numerous competitors. Also, in Russia, the trade barriers will be obstacles for the entry of the automobile company. However, with China's low cost labor and large potential domestic market make it an attractive destination for the direct foreign investment.

Explanation:

4 0
3 years ago
Other questions:
  • Uli produces stereo speakers. The selling price per pair of speakers is $1,930. There is no beginning inventory. Costs involved
    10·1 answer
  • Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig
    12·2 answers
  • An organization's mission statement is described as not ruling out any opportunity management might wish to pursue. This mission
    8·1 answer
  • The web organizes information by using _____, meaning documents that include embedded references to audio, text, images, video,
    6·1 answer
  • Which of the following is an example of a shortage?
    10·1 answer
  • What are some items that you like to buy or wish you could buy?
    14·2 answers
  • On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the
    13·1 answer
  • The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,
    9·1 answer
  • Tony borrows $1400 at an annual interest rate of 6.0%. He receives the loan on the first day of the current month and will make
    12·1 answer
  • When workers perceive they are being treated fairly on the job, they are most likely to.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!