answer.
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
ddd [48]
2 years ago
15

Annuities are a series of constant cash flows that have been received over a certain period of time. However, not all annuities

are created equal. Some annuities adjust the payments based on certain macroeconomic factors. Growing annuities are a series of payments that grow at a rate. You invested in an aggressive growth fund and expect to earn 19.08% annually over the next five years. However, due to strong growth, inflation is expected to be 9.45%. What should be your expected real rate of return
Business
1 answer:
Mademuasel [1]2 years ago
6 0

Answer:

Constant

8.80%

Explanation:

The growing annuities refers to the series of payments that grow at a constant rate

And, the expected real rate of return is

As we know that

Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1

= {( 1 + 19.08%) ÷ ( 1 + 9.45%)} - 1

= (1.1908 ÷ 1.0945) - 1

= 8.80%

Simply we applied the above formula to determine the expected real rate of return

You might be interested in
Maggie called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repair
Sonja [21]

The correct answers are B, E and D

6 0
2 years ago
Read 2 more answers
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are l
just olya [345]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Costs associated with the alternatives are listed below.

Alternative X

Materials costs $ 41,000

Processing costs $ 45,000

Equipment rental $ 17,000

Occupancy costs $ 16,000

Alternative Y

Materials costs $ 59,000

Processing costs $ 45,000

Equipment rental $ 17,000

Occupancy costs $ 24,000

Only Material Costs are relevant because they vary whether you chose Alternative X or Y. Processing costs are the same in both options.

6 0
2 years ago
Tenpenny Tower was built in 1985. However, the building has been constantly maintained and remodeled. In valuation terms, the bu
sattari [20]

Answer: effective age, chronological age

Explanation:

Effective age is the estimate of the age of a particular structure which is typically based on the condition and the utility of such structure.

Chronological age has to do with the amount of time from the day the building was constructed to the present age.

6 0
2 years ago
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franc
IrinaK [193]

Answer:

a.       I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.

b.      I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).

c.       I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.

6 0
2 years ago
Martha, a 30-year-old professional, has lost quite a bit of her invested money in the last three months. What strategy may her f
antiseptic1488 [7]

Answer:

she might want to invest in newer companies

Explanation:

if she sells all her good investments, in the long run she wont get any more revenue

7 0
1 year ago
Other questions:
  • What is the final printed version of the loan application called?
    14·1 answer
  • "researchers usually start their investigation by examining some of the rich variety of low-cost and readily available ________
    12·1 answer
  • Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h
    6·2 answers
  • Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical i
    15·1 answer
  • Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was esti
    5·1 answer
  • Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can
    12·1 answer
  • Dividing an organization’s manufacturing jobs into drill press, milling, heat treat, and assembly areas is an example of groupin
    9·1 answer
  • SI International had a FCFE of $122.1M last year and has 12.43M shares outstanding. SI's required return on equity is 11.3%, and
    11·1 answer
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    13·1 answer
  • Which of the following statements best characterizes how digital Internet-based streaming is trending?
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!