An investor wants to purchase an annuity that will pay her £80,000 per year for the next 10 years. If the constant, annual effective interest rate is 2%. How much should she be willing to pay today for the annuity? Answer to the nearest pound.

Answers

Answer 1

Answer:

£718,607

Explanation:

Annuities are investment opportunities that require an initial settlement  and gives  a series of returns of a fixed amount for a specific number of periods.

In simple terms, the question requires us to calculate the amount to be paid today (Present Value) of an annuity that pays £80,000 per year for the next 10 years.

To establish the [Present Value of the Annuity, the future Cash Flows must be discounted to the Present Value using the appropriate discount rate. In our case, we will use the annual effective interest rate of 2%.

Present Value = PMT × [ 1 - 1/(1+r)^n ÷ r ]

Where,

PMT = £80,000

n = 10

r = 2%

Therefore,

Present Value = £80,000 × [ 1 - 1 / (1.02) ^ 10 ÷ 0.02]

                         = £718,606.80 or £718,607

Conclusion :

She be willing to pay £718,607 today for the annuity.


Related Questions

Bravo! You did a great job. I bet you are ready to further evaluate your learning
about the lesson.
This assessment will gauge your mastery on the lesson about staffing.
COMPLETE THE SENTENCES: Choose the correct word or phrase from the box below
to complete each sentence.
MANAGEMENT
UNIVERSAL
STAFFING
SATISFACTION
SUCCESS
OPTIMUM
SELECTION
SKILLS INVENTORY
WORKFORCE
OBJECTIVES​

Answers

Where are the sentences

chose 10 items to take to a deserted island remember you need shelter there is food on the island and you also may need a fire source........yw have fun

Answers

Answer:

a big tent. my friends. a hamic. wepons. a boat. my phone. portabal charger. and my parents

Explanation

Answer:

Box of Matches

Tent

Canteen

Knife

Blanket

Pot

Bug Spray

Cloths

Flashlight

Journal w/ pencil

Explanation:

These are neccasary for survival !

Is being a finance manager is stressful job?​

Answers

Answer:

Yes

Explanation:

because it's job is day and night and also to calculate and solving problems in bank

A change in tastes or fashions can impact..
A. Both Supply and Demand
B. Supply
C. Neither Supply nor Demand

Answers

In my opinion a change in tastes and fashion can impact both supply and demand. This is so because if the consumers doesn’t like the product they would not buy it, this affects the demand of the product. If the suppliers aren’t getting enough demand for the product they won’t supply.

Underwriters have been taking indications of interest for shares of an upcoming new issue. Indications of interest are

Answers

Answer: Indications of interest are underwritten expression that shows a conditional, non-binding interest in buying a security that is currently in registration and awaiting approval

Explanation:

Indications of interest are underwritten expression that shows a conditional, non-binding interest in buying a security that is currently in registration and awaiting approval by the board known as Securities and Exchange commission (SEC). The broker of the investor is required to provide a preliminary prospectus

What are the functions of money?
A. A measure of debt
B. A storehouse of value
C. A form of bartering
D. A unit of account
E. A medium of exchange

Answers

Answer:

E,C, and D, and B

Explanation:

The functions of money are- a measure of debt, a storehouse of value, a unit of account, and a medium of exchange. Thus all the options except C are the functions of money.

What is money?

Money is any item or verifiable record that is widely accepted in a particular country or socio-economic context as payment for goods and services and repayment of debts, such as taxes.

Money serves as a medium of exchange, a unit of account, a store of value, and, in some cases, a standard of deferred payment. Money was historically an emerging market phenomenon with intrinsic commodity value.

Its value is derived as a result of social convention, having been declared legal tender by a government or regulatory entity; that is, it must be accepted as a form of payment within the borders of the country, for "all debts, public and private."

Therefore, options A, B,D, and E are the functions of money.

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Unpredictable policies can result in conflict because employees may ______.
a.
Believe that there is a double standard
b.
Have to guess at what the policies actually are
c.
Give out information that is incorrect
d.
All of the above

Answers

Answer:

All of the above

Explanation:

D.

Answer:

D

Explanation:

Above

Use what you have learned about filing income taxes to complete these sentences.
Citizens file income taxes to ensure that they will receive a Vif they paid too much in taxes throughout the
year.
Employers supply a v to help citizens file their tax returns,
Taxes returns can by filed either by mail or

Answers

Answer:

1) Refund

2) W-2

3) Online

Explanation:

Citizens file income taxes to ensure that they will receive a Refund if they paid too much in taxes throughout the year.

Employers supply a W-2 to help citizens file their tax returns.

Taxes returns can by filed either by mail or Online.

I've completed the following sentences by using what I've learned about filing taxes:

1) People file income taxes so they can get a refund if they paid too much in taxes for the entire year.

2) Companies give employees a W-2 form to aid in the filing of their tax returns.

3) Tax returns can be sent in the mail or submitted online.

What are income taxes?

Income taxes are taxes that individuals and businesses are required to pay on their income, which is the money they earn from various sources, such as salaries, wages, investments, and business profits. The purpose of income taxes is to fund government programs and services, such as education, infrastructure, and social welfare programs.

In most countries, income taxes are collected by the government through a system of tax returns, where individuals and businesses report their income and calculate the amount of tax they owe based on a set of tax rates and deductions. The tax rates and deductions vary depending on the country and the income level of the taxpayer.

Some countries have a progressive tax system, where the tax rate increases as the income level increases. This means that higher-income individuals and businesses pay a larger share of their income in taxes. Other countries have a flat tax system, where everyone pays the same tax rate regardless of their income level.

Income taxes can be a significant expense for individuals and businesses, and tax laws can be complex and subject to change. It is important to stay informed and seek the advice of a tax professional to ensure compliance with tax laws and minimize tax liability.

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If an investor purchases 500 shares of an aggressive growth stock, which strategy would limit his downside risk

Answers

Answer:

B)Buying 5 puts on the stock

Explanation:

The put provides the investor right to sell the stock at a strike price or set price for a time period and protect against the losses that lies below the strike price.

Also buying calls would protect the short position of the stock. Now in the case when the customer has the long stock so the call purchase on that security would rise the leverage and risk. Now if the put option is written so it develops a liability to purchase more stock at the set price that increased the down side risk

Therefore the correct option is B

Why fresh graduates consider working in a Call Center?​

Answers

Answer:

They have the opportunity to grow

They can earn an incredibly useful experience

They can enjoy high salaries and fun working environments

Call Centers Represent a Growing Industry

Call Centers Represent a Growing Industry

Explanation:

these are the reasons why fresh graduates consider working in call center. Don't worry if it is your first time i'm sure that you will have a nice experience

i hope this helps

If a harmful substance is used in a workplace, the company must provide what informational document to employees?
A.

Material safety data sheet
B.

Ergonomics checklist
C.

Guarantee
D.

Warranty

20 POINTS HURRY PLZZZ

Answers

Answer:

i would say B

Explanation:

ABC Book Company has $1 million in cash, $8 million worth of property, and $50,000 worth of equipment and furniture. What is the total value of ABC Book Company’s assets?

Select One:
a. $9,050,000
b. $1,000,000
c. $9,000,000
d. $50,000

Answers

Answer:

a. $9,050,000

Explanation:

You just need to add that all together

The percentage change in prices over time. This is a key indicator of the cost of
O Growth
O Recession
O Inflation Rate
O Unemployment Rate

Answers

ANSWER: Inflation Rate


I would say the third one

If the company issues common stock of $5,000 and pay dividends of $40,900, how much is net income (loss)?

Answers

Answer:

1.  $13,000

2. $34,000

3. $52,200

4. $28,100

5. $13,700

6. ($18,500)

Explanation:

Hi, I have attached the full question as pdf below

The Accounting equation is stated as :

Assets = Equity + Liabilities

also stated as,

Equity = Assets - Liabilities

therefore,

1.  Equity = $29,000 - $16,000 = $13,000

2. Equity = $63,000 - $29,000 = $34,000

now

Beginning Equity + Common Stock Issue + Net Income - Dividends = Ending Equity

where,

Beginning Equity = $13,000 (calculated)

Ending Equity = $34,000 (calculated)

therefore,

3. Net Income = $34,000 +$36,700-$13,000-$5,500 = $52,200

4. Common Stock = $34,000 + $8,100 - $13,000 - 1,000 = $28,100

5. Dividends = $13,000 + $16,700 + $18,000 - $34,000 = $13,700

6. Net (Ioss) = $34,000 - $13,000 - $41,100 + $1,600 = ($18,500)

Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand is unitary elastic? b. Over what range of output demand is elastic? c. Over what ranges of the output of demand are inelastic?

Answers

Answer:

So unit elastic at q = 5

inelastic above 5

and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

p = 40 - 4q

total revenue(TR)  =  quantity times price

q x (40 - 4q) = -4q^2 +40q

marginal revenue TR(q)/d(q)  = -8q + 40

Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

It will be inelastic below zero and elastic above zero

MR will be zero when q = 5

-8(5) + 40 = 0

As quantity increases the demand will be inelastic

while

Explain the typical shapes of the marginal-benefit and marginal-cost curves. The marginal-benefit curve is

Answers

Answer: The marginal benefit curve is downward.

The marginal cost curve is upward

Explanation:

Unlike the marginal cost curve, whose slope is often upwards, the marginal profit curve is generally known by its downward slope.

The optimum allocation of resources to a given product will take place when these curves are used. MB = MC always.

If an employee had the responsibility of both writing checks and making deposits to a bank, they would have

Answers

Answer:

2. Perceived opportunity

Explanation:

In the case when the employee had the responsibility with respect to the checks and deposit made in the bank so there is a capability to conceal regarding the fraud also he can easily escape from punsihment as he is bestowed

So this represents the opportunity as he can easily do the fraud in the organization

Therefore the option 2 is correct

And, the rest of the options are wrong

Help ASAP!!!! What is the most-possible answer?

Answers

Answer:

Community and junior colleges.

Explanation:

I don't know if im too correct but if i am, mark me brainliest?:)

Answer:

D - Collages

Explanation:

That is the only thing I know that gives degrees

do i have to pay anything when i create an account?

Answers

Answer:

no you don't lol free points thi

Answer:

no

Explanation:

because this app is free

A ({bond} or {stock}) will pay income based on an interest rate, while a ({bond) or (stock)} may give dividends to investors. Both interest income and dividends contribute to the ({cost) or (return) or (risk)} on an investment.

Answers

Answer:

A bond will pay income based on an interest rate, while a stock may give dividends to investors. Both interest income and dividends contribute to the return on an investment.

Explanation:

A bond is a long-term debt tool used by governments and corporations to raise funds. To investors, bonds offer long-term investment opportunities that pay interest based on the prevailing market rates.

A stock is the smallest unit of a company. Owning stock is owning a small portion of the company. Stockholders are entitled to share in the profits of a company; that's why they receive dividends.

An investment is a commercial undertaking that provides the investor with a financial gain. The financial gain or profits may be dividends from shares or interests from deposits.

Answer:

A bond will pay income based on an interest rate, while a stock may give dividends to investors. Both interest income and dividends contribute to the return on an investment.

Explanation:

it just make sense to me

A real estate professional specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the real estate professional may not disclose either party's confidential information to the other. The real estate professional is BEST described as

Answers

Answer:

a transactional broker.

Explanation:

A disclosure is a legally binding agreement between the buyer and seller of a property, wherein the seller highlights all the information or details they know about the property for the purpose of enlightening and informing the buyer. It contains informations such as legal encumbrance, structural flaw, size of property etc.

In this scenario, a real estate professional specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the real estate professional may not disclose either party's confidential information to the other. Thus, the real estate professional is best described as a transactional broker who is licensed to practice within the state.

As a job requirement, training involves which of the following?
A. Granting an individual the right to practice a profession
B. Verifying an individual's qualifications
C. Activities related to improving job performance
D. A formal program of study provided by an educational institution

Answers

Answer: C. Activities related to improving job performance

Explanation:

Training is the act by which a person is taught a particular skill or made to learn some certain things regarding a job which would be useful in improving job performance.

Training is vital as it improves performance and employee retention. Also, training helps in achieving organizational goals.

The more companies you follow on Twitter, the more companies Twitter will recommend to you. True False

Answers

Answer:

true

Explanation:

Answer:

True

Explanation:

A permanent employee works in the same position for his or her entire career.
a. True
b. False

Answers

Answer:

false

Explanation:

Listeners offer prompts to their speaker by___.

Answers

In any duel might be the answer?

Answer:

asking "what happened then"

Explanation:

I took the quiz and got it correct

please i need an urgent answer what is feeding regime​

Answers

Answer: A plan that specifies a diet, amount and schedule of nutritional

What is the name given to a group of individuals working together to achieve shared job-related goals such as higher pay, shorter working hours, greater benefits, or better working conditions

Answers

Answer:

Labor union

Explanation:

The labor union is the individual group that works together to accomplish the company goals or the shared job goals in terms of high pay, less working hours, high benefits, better working conditions

So the given situation represent the labor union

Hence, the same is to be considered and relevent too

2 The link that distributes a product from a supplier to the consumer is afn)
A. supply chain
B. shipping center
C. employee chain.
D. office hub.

Answers

The answer to this question is D

Isabella and Mateo made an incredible amount of money this year, and their tax lawyer was able to use many deductions to reduce their adjusted gross income by millions of dollars. However, despite all of his attempts to get them out of paying as many taxes, they still had to pay some. Which type of tax MOST likely ensured that Isabella and Mateo were required to pay some taxes?

A. withholding tax
B. earned-income tax
C. alternative minimum tax
D. sales tax

Answers

Answer:

C. alternative minimum tax

Explanation:

The correct option is C.

What is an alternative minimum tax in simple words?

AMT is a tax levied on 'adjusted total income' in an FY wherein tax on normal income is lower than AMT on Adjusted total income. So, irrespective of normal tax, AMT has to be paid by taxpayers to whom AMT provisions apply.

Who pays the alternative minimum tax?

The AMT increased taxes for 23.3 percent of households with “expanded cash income” (a broad measure of income) between $200,000 and $500,000, 63.8 percent of those with incomes between $500,000 and $1 million, and 24.2 percent of households with incomes greater than $1 million.

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How many manufacturing companies are in the north Georgia area

Answers

Answer:in addition to being a right-to-work state, with low unionization rates (2.5%), our quality workforce is one reason why companies in automotive, machinery, and plastics industries are experiencing high job growth. Whether you are looking for engineering talent to further innovation in products or processes, or a skilled labor force to work on the plant floor, Georgia has the existing and future workforce to fulfill your hiring needs. Georgia is home to many companies with a history of innovation that has impacted their.

Around 10,000 on average
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