subject
Business, 22.02.2020 05:19 mitalichavez1

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money.
1. Which option should you take and why?
A. You should accept the payments because they are worth $209,414 to you today. B. You should accept the payments because they are worth $247,800 to you today. C. You should accept the payments because they are worth $336,000 to you today. D. You should accept the $200,000 because the payments are only worth $189,311 to you today. E. You should accept the $200,000 because the payments are only worth $195,413 to you today.

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 16:00, idcbrooo
Sarah borrowed $16,500 on may 23 with interest due on september 3. if the interest rate is 9%, find the interest on the loan using exact interest and ordinary interest.
Answers: 2
image
Business, 21.06.2019 16:20, melanie687
Homestead jeans co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. monthly fixed costs are $54,000, and variable costs are $29 per unit. the present selling price is $42 per unit. on november 12 of the current year, the company received an offer from dawkins company for 18,000 units of the product at $32 each. dawkins company will market the units in a foreign country under its own brand name. the additional business is not expected to affect the domestic selling price or quantity of sales of homestead jeans co. a. prepare a differential analysis dated november 12 on whether to reject (alternative 1) or accept (alternative 2) the dawkins order. if an amount is zero, enter zero "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answers: 1
image
Business, 21.06.2019 23:00, AshlynPlayz45
The monthly payment m of a loan of amount p for y years with an interest rate r can be calculated by the formula: m = p(r/12) 1 â’ (1 + r/12)â’12y calculate the monthly payment and the cummulative total payment for a $100,000 loan with an interest rate of 4.85% if taken out for 10 years, for 11 years, etc., up to a 30 year term. display the results in a three-column table where the first column is the number of years, the second is the monthly payment, and the third is the cummulative total payment. note: use format bank; for this problem. also, remember to represent the interest rate as a decimal (e. g. 0.0485) 2. a torus-shaped water tube is designed to have a volume of 8, 000in3 . the volume of the tube, v , and its surface area, s, are given by: v = 1 4 ď€ 2 (a + b)(b â’ a) 2 s = ď€ 2 (b 2 â’ a 2 ) if a = kb, determine s, a, and b for k = 0.2, 0.3, 0.7. display the results in a table
Answers: 1
image
Business, 22.06.2019 06:20, kingyogii
At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58
Answers: 1
You know the right answer?
You are the beneficiary of a life insurance policy. The insurance company informs you that you have...

Questions in other subjects:

Konu
Mathematics, 17.03.2020 20:51