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AfilCa [17]
1 year ago
11

Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month

ly payment that will continue for his life. On the basis of his age, he can expect to receive $312,000. How much of each monthly payment is taxable income to Mr. Fairhold
Business
1 answer:
marusya05 [52]1 year ago
6 0

Answer: $1091.61

Explanation:

From the question, we are told that fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract and that this year, he began receiving a $1,300 monthly payment that will continue for his life and based on his age, he can expect to receive $312,000. The amount of each monthly payment is taxable income to Mr. Fairhold goes thus:

Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:

= $50,000/$312,000

= 0.1603

Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:

= $1,300 × 0.1603

= $208.39

Taxable annuity payment will now be:

= $1300 - $208.39

= $1091.61

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Answer:

How often, on average, receivables are received and collected during the period

Explanation:

An account receivable is an accounting entry that measures the amount which a firm or organization will receive soon that is not paid yet by the customers. Likewise, account receivable turnover measures the average amount received and collected in a particular period. It helps to understand the average receivable amount and what must be changed to improve it.

6 0
1 year ago
A random sample of 81 automobiles traveling on a section of an interstate showed an average speed of 60 mph. The distribution of
rjkz [21]

Answer:

so correct option is c. 1.51

Explanation:

given data

random sample n = 81

average speed x = 60 mph

standard deviation σ = 13.5 mph

interval estimate  μ =  86.9%

to find out

the value of the z

solution

we have given  μ =  86.9%

so we get here z critical value for the confidence level =  86.9 %

we will use here standard normal table

so z value for 86.9% is 1.51

so correct option is c. 1.51

4 0
1 year ago
A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be
mel-nik [20]

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. The residual value is expected to be zero. The truck is driven​ 27,000 miles during the first​ year.

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8 0
1 year ago
Read 2 more answers
Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
Rama09 [41]

Answer:

3. one case of 24 sodas @ $ 18.50

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The question requires that the hosts need to have enough to have two sodas each. The number of guests being 10, the requirement is to have 20 sodas.

Now comparing the various pack sizes available:

1. 20 sodas $ 1.50 per bottle, Total cost $ 30, per serving cost $1.50

2. 4 6 packs @ $ 5 each. Total cost $20, Per serving cost $0.83

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8 0
2 years ago
Nicholas, a longtime hotel manager for Wyndham, was meeting with Sophie, a regional manager, and telling her about his recent de
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Answer:

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Decision-making is fundamentally a choice between different alternatives to solve a problem in the most efficient way possible, but it cannot be taken lightly, so there are several methodologies and several types of decision-making, in this article we will discuss a bit about the "Rational model of decision making".

This model proposed by Herbert Simon is mainly characterized by the use of critical thinking to make decisions within organizations, equally applicable to everyday life. The rational model is simply to evaluate as objectively and sensibly different alternatives, with varied scenarios, causes and future results.

8 0
1 year ago
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