Question
In: Finance
C. D. Rom has just given an insurance company $44,500. In return, he will receive an...
C. D. Rom has just given an insurance company $44,500. In
return, he will receive an annuity of $6,200 for 20
years.
At what rate of return must the insurance company invest this $44,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Solutions
Expert Solution
PV = 44,500
PMT = -6,200
N = 20
FV = 0
CPT I/Y
I/Y = 12.64
The rate of return = 12.64%
jeff jeffy answered 2 years agoRelated Solutions
C. D. Rom has just given an insurance company $32,500. In return, he will receive an...
C. D. Rom has just given an insurance company $32,500. In
return, he will receive an annuity of $3,800 for 20
years.
At what rate of return must the insurance company invest this
$32,500 in order to make the annual payments? (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.)
Rate of Return ____________ %
D. Rom has just given an insurance company $45,500. In return, he will receive an annuity...
D. Rom has just given an insurance company $45,500. In return,
he will receive an annuity of $6,400 for 20 years.
At what rate of return must the insurance company invest this
$45,500 in order to make the annual payments? Use Appendix D for an
approximate answer, but calculate your final answer using the
financial calculator method. (Do not round intermediate
calculations. Round your final answer to 2 decimal places.)
C. D. Rom has just given an insurance company $33,500. Inreturn, he will receive an...
C. D. Rom has just given an insurance company $33,500. In
return, he will receive an annuity of $4,000 for 20
years. At what rate of return must the insurance company invest this
$33,500 in order to make the annual payments? Use Appendix D for an
approximate answer, but calculate your final answer using the
financial calculator method. (Do not round intermediate
calculations. Round your final answer to 2 decimal places.) Rate of return _______%
Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive...
Scenario: Davis Skaros has recently been
promoted to production manager. He has just started to receive
various managerial reports, including the production cost report
you prepared. It showed his department had 2,000 equivalent units
in ending inventory. His department has had a history of not
keeping enough inventory on hand to meet demand. He has come to
you, very angry, and wants to know why you credited him with only
2,000 units when he knows he had at least twice...
Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive...
Scenario: Davis Skaros has recently been promoted to production
manager. He has just started to receive various managerial reports,
including the production cost report you prepared. It showed his
department had 2,000 equivalent units in ending inventory. His
department has had a history of not keeping enough inventory on
hand to meet demand. He has come to you, very angry, and wants to
know why you credited him with only 2,000 units when he knows he
had at least twice...
Luke just purchased a tractor for the farm. He will receive free maintenance the first year....
Luke just purchased a tractor for the farm. He will receive free
maintenance the first year. After the first year he expects his
maintenance costs to be $250 in the second year and then increase
by $250 each year thereafter (i.e. $500 in year 3, etc.). How much
money should Luke set aside for maintenance costs when he purchases
the tractor? The tractor is expected to last 15 years. Assume 5%
interest.
Which has the highest Zeff for its valence electron? A) He B) Si C) K D)...
Which has the highest Zeff for its valence
electron?
A) He
B) Si
C) K
D) H
And why?
Given A*B*C and A*C*D, prove the corollary to Axion B-4.
Given A*B*C and A*C*D, prove the corollary to Axion B-4.
Given an experimental design with four factors A, B, C and D where each factor has...
Given an experimental design with four factors A, B, C and D
where each factor has two levels. Derive the formula for effect
estimation of main effect of ?, interaction effect of ??, ??? and
????. (please use
(1),a,b,c,d,ab,ac,ad,bc,bd,cd,abc,abd,acd,bcd,abcd to represent the
response)
Consider the following probability distribution for stocks C and D: State Probability Return on Stock C...
Consider the following probability distribution for stocks C and
D:
State
Probability
Return on Stock C
Return on Stock D
1
0.30
7
%
–
9
%
2
0.50
11
%
14
%
3
0.20
–
16
%
26
%
If you invest 25% of your money in C and 75% in D, what would be
your portfolio's expected rate of return and standard
deviation?
Select one:
a. 9.891%; 8.70%
b. 9.945%; 11.12%
c. 8.225%; 8.70%
d. 10.275%; 11.12%
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An economy has a Cobb–Douglas production function: Y=K^α(LE)^1-α The economy has a capital share of 0.35,...
- Foreman company issued $800,000 of 10%, 20-year bonds on January 1, 2011. The market rate at...
- Array with Pointers Find Continuous Sub-Array C++ Problem: Given an unsorted array A of size N...
- A 30-year maturity bond making annual coupon payments with a coupon rate of 8% has duration...
- Create an example of what a form in a database could look like. The form should...
- Exercise 3 – Strings Using a function Write a program that prompts the user to enter...
- In deciding whether to pursue a global strategy (central management of a coherent marketing message) or...
ADVERTISEMENT