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]
4 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]4 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
The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th
sveticcg [70]

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

4 0
3 years ago
Jose, a bank officer, takes the time to fully explain to an applicant why he is being turned down for a loan and does his best t
sineoko [7]

Answer:

Interactional Justice

Explanation:

Interactional Justice is an organizational behavior that deals with how respectfully and dignified people affected by a decision are treated.

As a management or leadership, interactional justice is important as it shows how well managers/leaders can execute their decisions and use their authority with employees/subordinates while being fair, polite and open to them.

Interactional Justice can simply be said to be the fairness and openness with which decisions are made known to the affected individuals.

Cheers.

4 0
3 years ago
Read 2 more answers
The point when the company makes exactly enough money to pay for itself, without making extra as a profit, is the ____________ p
-BARSIC- [3]
The point when the company makes exactly enough money to pay for itself, without making extra as a profit is the C. Break even point

hope this helps
7 0
3 years ago
Read 2 more answers
Why do you think that decorum and business etiquette play as essential components of business ethics and social responsibility
Delicious77 [7]

Proper decorum and good business etiquettes are essential components of business ethics and social responsibility because they:

  1. Create a professional atmosphere
  2. Improve communication
  3. Make a workplace productive
  4. Enhance workers' respect and dignity
  5. Improve customer and suppliers relationships.

<h3>What are business ethics and social responsibility?</h3>

Business ethics deal with the appropriate business policies and practices that ensure the observance of ethical principles.  They ensure that moral or ethical problems do not arise in a business environment.

Social responsibility refers to the cooperation that should exist among individuals and organizations for the benefit of the community.

Thus, Proper decorum and good business etiquettes remain essential components of business ethics and social responsibility.

Learn more about business ethics and social responsibility at brainly.com/question/25704651

4 0
2 years ago
A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all busine
Ann [662]

An enterprise system is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business. And large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations.


3 0
3 years ago
Other questions:
  • The clientele of black &amp; company's audit practice consists primarily of privately-owned small and middle market companies. r
    13·2 answers
  • What type of a goal is graduating from college in four years? (I forgot the attachment from last question)
    12·2 answers
  • Your firm is a supplier to a major chain of discount stores. you have heard rumors that this chain of discount stores is in fina
    14·2 answers
  • Kathy, a fashion model, witnessed a motor vehicle accident but did not stop because she was late for her pedicure and simply did
    9·1 answer
  • What are the effects of an increase in the population on potential​ GDP, the quantity of​ labor, the real wage​ rate, and potent
    8·1 answer
  • During the announcement of the merger between Body Metal and​ Shimmer, the two CEOs neglected to mention that to avoid​ duplicat
    12·1 answer
  • The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in th
    6·1 answer
  • If $1,500 is invested at 3% interest, how much money must be invested at 6% so that the total return for both investments is $19
    13·1 answer
  • The purchaser of a franchise is called the franchisee.A. TrueB. False
    8·1 answer
  • Explain the term economic activity
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!