you have a chance to buy an annuity that pays $3,800 at the end of each year for 3 years. you could earn 5.5% on your money in other investments with equal risk. what is the most you should pay for the annuity? question 29 options: a. $8,611.80 b. $10,662.23 c. $11,072.32 d. $7,689.11 e. $10,252.15

Answers

Answer 1

The most you should pay for the annuity that pays $3,800 at the end of each year for 3 years, with an alternative investment earning a 5.5% return, is approximately $10,662.23. This value is calculated by determining the present value of the annuity's cash flows using the given discount rate. The correct answer is option b.

To determine the most you should pay for the annuity, we can calculate the present value of the annuity's cash flows using the given discount rate of 5.5%. The formula for calculating the present value of an annuity is:

PV = CF * [(1 - (1 +\(r)^(-n))\) / r]

PV = Present value

CF = Cash flow per period

r = Discount rate

n = Number of periods

Cash flow per period (CF) = $3,800

Discount rate (r) = 5.5%

Number of periods (n) = 3

Plugging in the values, we can calculate the present value (PV) of the annuity:

PV = $3,800 * [(1 - (1 +\(0.055)^(-3\))) / 0.055]

Calculating the expression above yields the present value of the annuity, which determines the most you should pay for it. Comparing the given options, the closest value to the calculated present value is $10,662.23 (option b).

Therefore, option b, $10,662.23, is the most you should pay for the annuity.

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Related Questions

Discuss the sources and approaches used by McDonald in order to stay abreast of the environmental changes

Answers

McDonald's is a global fast-food chain that operates in over 100 countries.

Market research: McDonald's conducts extensive market research to understand consumer trends, preferences, and behaviors.

Technology: McDonald's uses technology to stay up-to-date with environmental changes. The company also uses digital platforms to collect feedback from customers and monitor online reviews.

Sustainability initiatives: McDonald's has a strong focus on sustainability, and has implemented a range of initiatives to reduce its environmental impact.

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Abbotsford Ltd. receives its annual property tax bill for the
calendar year on May 1, 2021. The bill is for $28,000 and payable
on June 30, 2021. Abbotsford Ltd. paid the bill on June 30, 2021.
The co

Answers

Abbotsford Ltd. made the following journal entries related to property taxes in 2021: an accrual entry on March 31, 2021, for $7,000, an adjusting entry on June 30, 2021, reversing the accrual of $7,000, and a payment entry on June 30, 2021, for $28,000.

To record the property taxes for 2021, Abbotsford Ltd. made three journal entries.

First, on March 31, 2021, an accrual entry was made to record the estimated property taxes for the year. Since the company prepares quarterly financial statements, one-fourth of the estimated taxes ($30,000/4 = $7,500) was accrued as an expense. The journal entry for the accrual would be:

Debit: Property Tax Expense $7,500

Credit: Accrued Property Taxes $7,500

Next, on June 30, 2021, an adjusting entry was made to reverse the accrual since the actual tax bill was received and paid. The journal entry to reverse the accrual would be:

Debit: Accrued Property Taxes $7,500

Credit: Property Tax Expense $7,500

Finally, on June 30, 2021, the payment for the property tax bill was made. The journal entry to record the payment would be:

Debit: Accrued Property Taxes $7,500

Debit: Property Tax Expense $20,500 ($30,000 - $7,500)

Credit: Cash $28,000

These journal entries accurately reflect the accrual, adjustment, and payment of property taxes for Abbotsford Ltd. in 2021.

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Abbotsford Ltd. receives its annual property tax bill for the calendar year on May 1, 2021. The bill is for $28,000 and payable on June 30, 2021. Abbotsford Ltd. paid the bill on June 30, 2021. The company prepares quarterly financial statements and had initially estimated that its 2021 property taxes would be $30,000.

Instructions

Prepare all the required journal entries for 2021 related to the property taxes, including quarterly accruals.

how can a reduction in taxation be used to influence aggregate demand​

Answers

Answer:

shifting the aggregate demand curve to the right.

Explanation:

What are the process of a business transaction

Answers

Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services. Business transactions can be as simple as a cash purchase or as complex as a long-term service contract .

Explanation:

What is product positioning?

Answers

Answer:

Product positioning is the process of deciding and communicating how you want your market to think and feel about your product.

Explanation:

When a product is positioned, it means that its target market's perception of it has been ascertained and communicated. It entails identifying the special qualities and advantages of the product and differentiating it from rivals.

A strategic exercise called "product positioning" seeks to explain how a product fits into the market and why it is superior to complete products. It aids companies in developing a strong and distinctive market position for their goods, which ultimately promotes client preference and loyalty.

Understanding the customer's issue and demonstrating how your product can address it more effectively than rivals are part of this.

As a result, the significance of the product positioning are the aforementioned.

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AWNSER THIS ASAP PLEASE

a commidity is something with cash value that can be bought ir sold

true
false ​

Answers

Answer:

true so yeah so that is the answer

Answer:

True

Explanation:

In simplest terms, it would mean a useful or valuable thing. And in specific terms, that value cam be bought or sold.

What are some factors that would influence supply? Explain

Answers

Answer:

6 Factors Affecting the Supply of a Commodity (Individual Supply) |

Price of the given Commodity: ADVERTISEMENTS: ...

Prices of Other Goods: ...

Prices of Factors of Production (inputs): ...

State of Technology: ...

Government Policy (Taxation Policy): ...

Goals / Objectives of the firm:

Explanation:

Please mark as brain list

which bond portfolio construction is based on a phase in of purchases in installments over time

Answers

The bond portfolio construction method that is based on a phase-in of purchases in installments over time is called the laddering strategy.

Under the laddering strategy, the bond portfolio is constructed by dividing the investment amount into equal parts and investing those parts in bonds with varying maturities. For example, an investor may divide their investment into five equal parts and purchase bonds with maturities of 1 year, 2 years, 3 years, 4 years, and 5 years, respectively.

As each bond matures, the proceeds are reinvested in a new bond with the longest maturity in the ladder. This allows the investor to maintain a consistent average maturity for the portfolio while also providing liquidity as bonds mature at regular intervals.

The laddering strategy is a popular method for managing bond portfolios because it can help reduce interest rate risk, which is the risk that changes in interest rates will impact the value of the portfolio.

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_____ is an insignificant value per share of capital stock specified in the corporate charter. Multiple choice question. Seasoned value Treasury Stock Par value Additional Paid-in Capital

Answers

The insignificant value per share of capital stock that is been set and introduced in the charter can be regarded as par value.

Par value can be explained as the value of a single common share which is been specified by corporation's charter.

This cannot be been  related to the actual value of the shares.

Therefore, par value is the correct term.

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True or False?
Social workers work at both the state and national level.

Answers

True




Explanation: because true

discuss the economic importance of the tertiary sector

Answers

Answer: sector provides basic services such as hospitals, educational institutions, post and telegraph services, police stations, courts, municipal corporations, defence, banks, insurance etc. ... Thus, tertiary sector is certainly important for the development of other sectors in an economy.

Explanation:

Answer:

studying

Explanation:

good to study economics to know the national income and taxrs

Allison would like to find all records that are in stock. In her database, she has a field named "in stock." When the item is in stock, a "yes" appears. What should Allison do?


Conduct a query and set the criteria as =yes.

Conduct a query and set the criteria to >2.

Locate each record and check each one.

Sort the records in ascending order by item number.

Answers

Answer: she should conduct a query and set the criteria to >2

Explanation:

Don’t know this but I tried I am only in 9th grade

the _____ ratio refers to the ability of the organization to meet its current debt obligation.

Answers

The ratio that refers to an organization's ability to meet its current debt obligation is known as the current ratio.

The current ratio is calculated by dividing the total current assets by the total current liabilities.

If the ratio is less than 1, it indicates that the company may have difficulty in meeting its current debt obligation. On the other hand, if the ratio is greater than 1, it means that the organization has more current assets than current liabilities and is in a better position to pay its debt.

The current ratio is particularly important for companies that have short-term liabilities, such as accounts payable, and need to maintain a certain level of cash to ensure their continued operations. Therefore, it is important for organizations to have a strong current ratio to maintain their financial stability and reputation.

Overall, the current ratio is a useful metric that helps stakeholders assess the short-term liquidity of a company. However, it is important to note that a high current ratio may also indicate that the organization is holding too much inventory or cash, which can affect its long-term profitability.

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A social audit is a systematic assessment of employee happiness within a company.

Answers

Answer:

Yes

Explanation:

It will allow the company to understand key areas of improvement to make the work environment the best it can be for the people who work there.

After one year, a worker gets a 1% raise. The inflation rate for that year was 2%. Did the worker's real income increase, decrease, or remain the same?

Answers

Due to the 2% inflation, the prices of goods and services increased by 2%. This means that the cost of living increased to $1020. Therefore, the worker's real income (purchasing power) decreased from $1000 to $990.

The worker's real income decreased. Let's break it down step-by-step:
1. The worker received a 1% raise after one year. This means that their salary increased by 1% compared to what it was before.
2. However, the inflation rate for that year was 2%. Inflation refers to the increase in the general price level of goods and services over time.
3. Because the inflation rate is higher than the worker's raise, the prices of goods and services increased by a greater percentage (2%) compared to the increase in the worker's salary (1%).
4. As a result, the purchasing power of the worker's income decreased. In other words, even though the worker received a raise, the increase in prices due to inflation eroded the value of their income.
To illustrate this, let's say the worker's salary before the raise was $1000. After the 1% raise, their new salary would be $1010. However, due to the 2% inflation, the prices of goods and services increased by 2%. This means that the cost of living increased to $1020. Therefore, the worker's real income (purchasing power) decreased from $1000 to $990.
In conclusion, the worker's real income decreased due to the combination of a 1% raise and a 2% inflation rate.

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Last year, Dr. Lopez quit his $100,000 job at the MegaMall Dental Clinic and opened his own dental practice. His revenue for the first year was $400,000. He paid $80,000 in rent for the dental office, $60,000 for his office manager’s salary, $25,000 for the dental hygienist, $150,000 for insurance, and $10,000 for other miscellaneous expenses. Based on this information, which of these statements is correct?

Answers

Answer: D) All of the above are correct.

Explanation:

Implicit costs are the opportunity costs which refers to the value of the next best alternative to the current decision path. As Dr. Lopez quit a job that was paying $100,000 in order to open this practice, that would be his implicit costs.

His accounting profit is;

= Revenue - expenses

= 400,000 - 80,000 - 60,000 - 25,000 - 150,000 - 10,000

= $75,000

His economic profit;

= Accounting profit - Implicit costs

= 75,000 - 100,000

= -$25,000

The cyclical deficit rises during economic expansions. True or false

Answers

Answer:

false

Explanation:

Historically, the deficit has been highly countercyclical, meaning that it rises during economic slowdowns and falls during expansions. This countercyclicality is driven by both the spending side and revenue side and by both discretionary or “activist” policies and automatic or “passive” policies

Answer:

False

Explanation:

Annalise received financial aid offers from two universities.
Financial Analysis for Option A
Costs per Year
Financial Aid Package per Year
Tuition & Fees
Scholarships & Grants
$10,000
$7,000
Room & Board
Work-Study
$11,500
$4,000

Financial Analysis for Option B
Costs per Year
Financial Aid Package per Year
Tuition & Fees
Scholarships & Grants
$28,000
$18,000
Room & Board
Work-Study
$9,000
$4,000

Which statement about the costs per year is true?
Option A will save her $4,500.
Option B will save her $7,000.
Option B will save her $11,000.
Option A will save her $15,500.

Answers

Answer:

Option A will save her $4,500

Explanation:

Calculation to determine Which statement about the costs per year is true

First step is to calculate OPTION A cost per year

Option A Costs per Year

Work-Study $4,000

Tuition & Fees $10,000

Scholarship & Grants $7,000

Room & Board $11,500

Total $18,500

Second step is to calculate OPTION B cost per year

Option B Costs per Year

Work-study $4,000

Tuition & Fees $28,000

Scholarship & Grants $18,000

Room & Board $9,000

Total $23,000

Now let determine Which statement about the costs per year is true

Costs per year= $23,000-$18,500

Cost per year=$4,500

Therefore the statement about the costs per year that is true will be: Option A will save her $4,500 because the cost per year for OPTION A is LESS COSTLY than that of option B by $4,500.

Removing workplace barriers for women and accommodating employees who are physically challenged are ways a business can contribute to (a)environmental protection (b) job safety © workplace diversity (d) employee wellness

Answers

Answer:

workplace diversity

Explanation:

Workplace diversity is the term used to describe a workplace whose employees are composed of varying characteristics, such as gender, age-group, race, ethnicity, sexual orientation, and other attributes. Workplace diversity is achieved through the employer’s deliberate actions to incorporate people from diverse backgrounds.

Workplace diversity improves a company’s reputation and brings on board various perspectives in decision making. It also adds creativity and problem-solving skills to the company.  

If you take out a loan that costs $321.62 over eight years at an interest rate of 2%, how much was the loan for

Answers

Answer:

the amount of the loan is $2,010.13

Explanation:

The computation of the amount of the loan is shown below:

As we know that

Simple interest = Principal × rate × time period

$321.62 = Principal × 2% × 8

$321.62 = Principal × 16%

SO, the principal is

= $321.62 ÷ 16%

= $2,010.13

Hence, the amount of the loan is $2,010.13

The above formula should be applied for the same

During a job interview, Pam Thompson is offered a salary of $32,000. The company gives annual raises of 4 percent. What would be Pam's salary DURING her fifth year on the job? (You may need to round to the nearest answer)

Answers

Answer:

$38,933

Explanation:

A=P( 1 + r/100)^n

A= amount

r= rate(4%)

n=period (5)

A=32,000 ( 1 + 4/100)⁵

A=32,000 (1.04)⁵

A=38,932.89

A=$38,933( nearest whole number)

During a job interview, Pam Thompson is offered a salary of $32,000. Pam's salary during her fifth year on the job is $ 37435.474.

What do you mean by the annual raise of salary?

A worker's salary increase is expressed as a percentage of their total base pay. Typically, it represents a portion of the employee's yearly compensation. Employers may utilize increments to raise or lower basic pay as well as to provide incentives.

The yearly increase % calculates the average annual percentage rate of salary increases.

Here,

Current salary= 32000

First increment will occur at the beginning of 2nd year = 32000 × (1+4%)

Second increment will occur at the beginning of 3rd year = 32000 × (1+4%) × (1+4%)

Third increment will occur at the beginning of 4th year =  32000 × (1+4%) × (1+4%) × (1+4%)

Fourth increment will occur at the beginning of 5th year

= 32000 × (1+4%) × (1+4%) × (1+4%) × (1+4%)

= 32000 × (1+4%)^4

= 32000 × (1.04)^4

= 32000 × 1.1698586

= $ 37435.474

Therefore, during a job interview, Pam Thompson is offered a salary of $32,000. Pam's salary during her fifth year on the job is $ 37435.474.

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are good places to look to find your current expenses when building your budget.

A) Online research websites

B )Banks and credit unions

C)Bank and credit statements

D)Grocery stores and concerts

Answers

Answer:

C)Bank and credit statements

Explanation:

The good places to look to find your current expenses when building your budget is "Bank and Credit Statements"

This is because the credit statement is a document showing a list of transactions or money spent on goods or expenses made. This credit statement can be gotten from a bank of the person whose credit statement is under analysis or credit union.

Hence, in this case, the correct answer is Bank and credit statement.

how are wages determined in a free market?

Answers

Answer:

Classical economists argue that wages—the price of labor—are determined (like all prices) by supply and demand. They call this the market theory of wage determination. ... Long story short: the price of labor is determined in the free market just like every other price, by the intersection of supply and demand.

Explanation:

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A company's assets include cash of $6,000; accounts receivable of $10,000; inventories of $56,000; and plant assets of $28,000, totaling $100,000. Its liabilities include accounts payable of $25,000 and bonds payable of $45,000, totaling $70,000. Its stockholders' equity includes $10,000 of capital stock and $20,000 of retained earnings, totaling $30,000. What is the company's current ratio

Answers

Answer:

6,000

Explanation:

What system did merchants in early centuries use to make commercial transactions easier

Answers

In the early centuries, merchants made use of the Mercantilism system for commercial transactions.

What is Mercantilism?

In simple terms, it is an economic theory and practice known as "mercantilism," which was prevalent in Europe from the 16th to the 18th century.

Mercantilism advocated governmental regulation of a country's economy with the goal of enhancing state power at the expense of competing for national powers.

According to the theory, a strong nation should have a sizable population because a sizable population would offer a supply of labor, a market, and soldiers.

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write short notes by Napier bone ​

Answers

Answer:

Napier's bones is a manually-operated calculating device created by John Napier of Merchiston, Scotland for the calculation of products and quotients of numbers. The method was based on lattice multiplication, and also called 'rabdology', a word invented by Napier. Napier published his version in 1617.

what is home trade businness​

Answers

Answer:

Home trade is the buying and selling of goods (with the aim of making profit) among people of the same country.

Explanation:

Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail. ... Retail trade is concerned with the sale of goods in small quantities to consumers.

when segmenting a broad product-market, it is especially important that marketers create segments

Answers

When segmenting a broad product-market, it is especially important that marketers create segments that are operational.

The ability of the company to use a market segment to discover customers and modify the marketing mix is the key criterion for a successful market segment. Market segmentation, or breaking your audience up into groups based on traits in common, aids firms in developing more effective marketing plans. Targeted advertising campaigns, increased brand loyalty, improved product development, and the ability to increase profit margins are all advantages of market segmentation. Go to the root of your clients' purchasing motivations by segmenting your market to better satisfy their individual demands. This will help you get the most out of your marketing budget.

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what potential ethical issues arise with a b2b transaction as opposed to a b2c transaction?

Answers

The potential ethical issues that arise with a B2B (Business-to-Business) transaction as opposed to a B2C (Business-to-Consumer) transaction are conflicts of Interest, misrepresentation, unfair competition, privacy concerns, and lack of transparency.

The issues can be described as follows:

1. Conflicts of Interest: In a B2B transaction, there is a higher likelihood of conflicts of interest arising between the parties involved. This is because both parties are businesses, and may have competing interests or agendas.

2. Misrepresentation: B2B transactions often involve complex contracts and negotiations, which can create opportunities for misrepresentation or fraudulent behavior.

3. Unfair Competition: B2B transactions can also give rise to issues of unfair competition, particularly if one party has a dominant market position or engages in anti-competitive practices.

4. Privacy Concerns: B2B transactions may involve the sharing of sensitive or confidential information, which can raise privacy concerns and the potential for misuse of this information.

5. Lack of Transparency: B2B transactions can also be less transparent than B2C transactions, making it more difficult to detect unethical behavior or hold parties accountable for their actions.

In conclusion, B2B transactions can raise a number of potential ethical issues, including conflicts of interest, misrepresentation, unfair competition, privacy concerns, and a lack of transparency. It is important for businesses to be aware of these issues and to take steps to address them in order to maintain ethical standards and build trust with their business partners.

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through the 1960s, which country dominated world foreign direct investment?

Answers

Through the 1960s, United States of America was the country dominated world foreign direct investment.

Foreign direct investment refers to when a company or individual invests money in a business or property located in a different country. Foreign Direct Investment (FDI) is an investment made by a company or individual in one country into a business located in another country.

This investment can take various forms, including the acquisition of shares in a foreign company, the establishment of a new foreign enterprise, or the purchase of real estate or other physical assets in the foreign country.

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