Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

33. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000,

33. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.8%, what is the present value of John's future annual earnings? (Round your answer to the nearest cent.) 2. Rounding up to the next $50,000, how much life insurance should he buy? (Round your original answer to the nearest $50,000.)

34. A MasterCard statement shows a balance of $540 at 13.9% compounded monthly. What monthly payment will pay off this debt in 1 year 9 months? (Round your answer to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AQA AS Accounting Unit 1 Introduction To Financial Accounting

Authors: Brendan Casey

1st Edition

1499789653, 978-1499789652

More Books

Students also viewed these Finance questions

Question

=+d) Indicate which is used to calculate the confidence interval.

Answered: 1 week ago