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Maslowich
2 years ago
8

C. D. Rom has just given an insurance company $34,500. In return, he will receive an annuity of $4,200 for 20 years. At what rat

e of return must the insurance company invest this $34,500 in order to make the annual payments? (Do not round intermediate calculations)

Business
1 answer:
vivado [14]2 years ago
8 0

Answer:

10.53%

Explanation:

In this question, we use the RATE formula that is shown in the attachment. Kindly find it below:

Data provided  

Present value = $34,500

Future value or Face value = $0

PMT = $4,200

NPER = 11 years × 2 = 22 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative

So, after solving this, the rate of return is 10.53%

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g Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs
scZoUnD [109]

Answer:

$360,000

Explanation:

The total cost would be estimated as the expense anticipated plus the property taxes paid previously.

Now

Total Cost = $240,000 Property Taxes paid      +     $1,200,000 Property repairs anticipated

= $1,440,000

Now we will distribute the annual cost over the four quarters which mean we will divide the total annual cost by 4.

Quarterly Expenses = $1,440,000 / 4     = <u>$360,000</u>

4 0
2 years ago
Suppose that in a month the price of movie rentals decreases from​ $3.25 to​ $3. At the same​ time, the quantity of movie rental
Sergeeva-Olga [200]

Answer:

The correct answer is option a.

Explanation:

The initial price of movie rentals is $3.25.

The initial quantity is 100.

The price falls to $3.

This causes demand to rise to 120.

The price elasticity of demand a ratio of change in quantity demanded to change in price level.

The elasticity is calculated at -2.25, through the process given in images.

The price elasticity of demand here is greater than 1 which means it is elastic.

So, option a is the correct answer.

4 0
2 years ago
TL Lumber is evaluating a project with cash flows of −$12,800, $7,400, $11,600, and −$3,200 for Years 0 to 3, respectively. Give
Eddi Din [679]

Answer:11.82%

Explanation:

Yr C/ flow int Amount

1 7400. 1.08^2 8631.

2 11600. 1.08^1. 12,528

3 -3,200. 1 -3,200

Total reinvested amount

17959

MIRR=modified internal rate of return=

(17,959/12,800)^1/3-1

=1.1182-1=0.1182=11.82%

4 0
3 years ago
Read 2 more answers
Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful
Nastasia [14]

Answer:

Annual depreciation (year 1)= $1,400

Explanation:

Giving the following information:

Buying price= $36,000.

Useful units= 300,000 units of product.

Salvage value= $6,000

During its first year, the machine produces 14,000 units of product.

To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(36,000 - 6,000)/300,000]*14,000

Annual depreciation= 0.1*14,000= $1,400

3 0
2 years ago
Which of the following is NOT a typical revenue model in the digital world? Freemium Subscriptions Channel marketing Licensing A
Ber [7]

Answer:

The correct answer is Channel Marketing.

Explanation:

The marketing channels are the routes through which the products circulate from their origin, the manufacturer, to the final consumer. These channels are formed by companies independent of the manufacturers whose function is to market, sell or help the sale of products created or manufactured by others. Let's say that the marketing channels are the ones that help sell the products of others.

Depending on the type of sales technology they use, we can find different channels:

  1. Traditional channels: those that, as the name implies, do not use advanced technology to achieve their ends.
  2. Automated channels: they use technology in a basic way to channel products towards consumption. For example, product vending machines.
  3. Audiovisual channels: these are the channels that use different media. For example, television to publicize their products, the telephone to contact potential buyers and a transport company to get the product home.
  4. Electronic channels: these are the marketing channels that use the internet as a means to connect with consumers.
5 0
2 years ago
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