Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 01, 2024

Laura is contemplating purchasing a single premium annuity from an insurance company. The insurance company is promising to pay $619000 after 8 years. They are

Laura is contemplating purchasing a single premium annuity from an insurance company. The insurance company is promising to pay $619000 after 8 years. They are estimating a 12% annual return. What amount should Laura pay the insurance company today? $245813 $619000 $250002 $928500

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

The Essentials Of Machine Learning In Finance And Accounting

The Essentials Of Machine Learning In Finance And Accounting

Authors: Mohammad Zoynul Abedin, M. Kabir Hassan, Petr Hajek, Mohammed Mohi Uddin

1st Edition

0367480816, 978-0367480813

More Books

Students also viewed these Finance questions

Question

★★★★★

Does the intensity of light from a laser fall off as the inverse square of the distance? Explain.

Answered: 1 week ago

Question

★★★★★

A florist is creating 10 centerpieces. Roses cost $2.50 each, lilies cost $4 each, and irises cost $2 each. The customer has a budget of $300 allocated for the centerpieces and wants each centerpiece...

Answered: 1 week ago

Question

★★★★★

When I solved this type of problem before, which visual representation did I use?

Answered: 1 week ago

Question

★★★★★

Identifying product and period costs Required Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost. a. Advertising expense. b. Insurance on...

Answered: 1 week ago

Question

★★★★★

You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.3 B 150,000 1.7 C 400,000 0.65 D 150,000 -0.25 Total investment 1,000,000 The market's...

Answered: 1 week ago

Question

★★★★★

The mean ACT score for the U.S. is 21 with a standard deviation of 5. A Troy statistics wants to know how Alabama students compare to the national average, so he randomly samples 12 students and...

Answered: 1 week ago

Question

★★★★★

Three Company uses a process organized into two service or support departments (Support 1 and Support 2) and two producing departments (Production 1 and Production 2).Budgeted data for the four...

Answered: 1 week ago

Question

★★★★★

Assume that the differences are normally distributed. Complete parts (a) through (d) below. Observation 1 2 3 4 5 6 7 8 X 46.7 46.8 48.7 43.9 47.5 48.1 44.8 48.3 50.9 47.9 51.6 48.3 47.3 51.2 45.9...

Answered: 1 week ago

Question

★★★★★

this is kimon and he designed a new range of sneakers that are made from recyclable materials such as plastic and rubber. he also made sure that the sole is as comfortable as possible and that these...

Answered: 1 week ago

Question

★★★★★

I'm confused by the pictures here Residential Fire Damage Claims, 2010-2020 14,000 12.000 10,000 8,000 Thousands of Dollars 6,000 - 4.000 2,000 2010 2015 2020 Source: Insurance company records ()...

Answered: 1 week ago

Question

★★★★★

5. Suppose that you get the following regression result from a sample of 277 observations: = 4.57 +0.188x1 - 0.22x2 + 0.171x3 0.92x4 (0.25) (0.040) (0.21) (0.055) (0.33) R = 0.353 The numbers in the...

Answered: 1 week ago

Question

★★★★★

Describe recent technology trends and their effects on business communication.

Answered: 1 week ago

Question

★★★★★

Discuss legal and ethical issues related to electronic communication and e-commerce.

Answered: 1 week ago

Question

★★★★★

Identify cultural barriers to communication.

Answered: 1 week ago

Previous Question Next Question