Considering buying a perpetual annuity

Assignment Help Business Economics
Reference no: EM131007713

You are considering buying a perpetual annuity which cost $10,000 now upfront. you could instead invest in a cd and earn 4% your discount rate. what is minimum yearly payout you require to buy this annuity?

Reference no: EM131007713

Questions Cloud

Devastating impact on our national economy : In 2009 the American auto industry was in a dire economic state. Chrysler was in Chapter 11, GM was on the brink of bankruptcy, and Ford’s future was at best uncertain. The demise of the U.S. auto industry would have a devastating impact on our natio..
What is the value of lerner index at profit-maximizing price : Rick sells hamburgers, facing no competition the demand for his burgers is: Q=1000-2P, where Q is the quantity of burgers sold per week and P is the price of a given hamburger. Suppose Rick’s monthly cost is given by: TC= 1000+100Q. What is the value..
Discuss all of the lawsuits and the parties contentions : Taylor, a securities lawyer for a major Wall Street law firm, worked on numerous successful takeover bids of companies listed on the New York Stock Exchange. Rogers and Price defend that they were merely acting on stock market tips received from a pe..
Describe the five international environmental forces : Define and describe the five international environmental forces that impact international business. Associate a company in our marketplace that utilizies each individual environmental force
Considering buying a perpetual annuity : You are considering buying a perpetual annuity which cost $10,000 now upfront. you could instead invest in a cd and earn 4% your discount rate. what is minimum yearly payout you require to buy this annuity?
Stick to utilitarian basis for redistribution of wealth : When we stick to a utilitarian basis for redistribution of wealth, it fails analytically because
When we say utility is the determinant of exchange value : When we say utility is the determinant of exchange value, we mean that
Determine the range of annual volume : A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Determine the range of annual volume for which each of the alter..
?re?ghters is raising money to erect a permanent : A patriotic group of ?re?ghters is raising money to erect a permanent (i.e., in?nite life) monument in New York City to honor those killed in the line of duty. The initial cost of the monument will be $150,000, and the annual maintenance will cost $5..

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what did classical economists assumes

Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession. Illustrate what disagreements did Keynes ..

  A demand function is given by the equation

A demand function is given by the equation q=120-2p, suppose the price is P=10. Must find three things: When the price is P=10, what is the quantity? The total revenue at this point is? The price elasticity of demand at this point is?

  History around efforts to enact national health insurance

What lessons can we infer from history around the efforts to enact National Health Insurance and/or Health Reform? What are the economic rationales for different types of government intervention in health care?

  Initially in a perfectly competitive equilibrium

Assume that the dairy industry is initially in a perfectly competitive equilibrium. Assume that, in the long run, the technology is such that average cost is constant at all levels of output. Suppose that producers agree to form an association and be..

  Emergency and crise management

Emergency/Crise Management, how this problem would be solve in terms of who has the problem and how they are affected, why this is a problem, what you can do to solve this problem using information technology and when this might be accomplished

  Illustrate what happens if the consumer faces a borrowing

Illustrate what happens if the consumer faces a borrowing constraint that prevents her from borrowing.

  When an incumbent maintains a price below the monopoly price

When an incumbent maintains a price below the monopoly price in order to prevent entry. The act of charging a low price initially upon entering a market to gain market share.

  Market for a new refrigerator for your companys lounge

the market for a new refrigerator for your company's lounge also You've narrowed down the search to two models.

  Q1 illustrate what are the reasons for differences in price

q1. illustrate what are the reasons for differences in price elasticity of demand between different products? explicate

  The demand for the product of a business

The demand for the product of a business is given by q = 50 - 2p. If the price of the product is p = 10 dollars, the revenue is

  Why is the equilibrium stable

Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why dont the rms raise prices to the level that maximizes joint prots? What is the DWL in this model?

  Information is given to determine alternative is preferred

If the IRR of Alternative A is 16.91%, the IRR of Alternative B is 14.91%, and MARR is 10.91%, which of the following is correct? alternative B is preferred over alternative A. neither alternative A nor alternative B is acceptable. alternative A is p..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd