Homework Answers
Ans An equity-indexed annuity
Annuities have a variety of features and benefits.An equity-indexed annuity allows for investment returns that are exposed to the stock market but has a minimum rate of return
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Annuities have a variety of features and benefits. Which of the following types of annuities allows...
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has...
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
Term Answer Description A. This is the fund available to the purchaser's beneficiaries. Single premium annuity...
Term Answer Description A. This is the fund available to the purchaser's beneficiaries. Single premium annuity contract Immediate annuity 0 This annuity's monthly income varies as a function of the insurer's actual investment experience. 0 C. Installment premium annuity contract The insurance company safeguards the principal and agrees to a minimum interest rate over the life of the contract. Survivorship benefit 0 Often purchased by individuals, this annuity allows periodic payments made over time. This type of contract allows cash...
7. Future value of annuities There are two categories of cash flows: single cash flows, referred...
7. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. O Ordinary annuities make fixed payments at the beginning of each period for a certain time period. An annuity is a series of equal payments made at fixed intervals for a specified number of periods....
I need help answering questions 17-25 please! 17. At the age of 68, Seth elected a...
I need help answering questions 17-25 please!
17. At the age of 68, Seth elected a life and 10-year term certain option for the payout of his $100,000 annuity. All of the following statements are true EXCEPT: a. The annuity will make income payments for a minimum of 10 years. b. Seth will receive an income stream for as long as he lives. C. At Seth's death, his beneficiary will receive a minimum of $100,000. d. If Seth were to...
Which of the following statements is false? a.) Federal law does not require those selling a...
Which of the following statements is false? a.) Federal law does not require those selling a group annuity contract with multiple investment choices including equity funds to have a securities license or to provide a prospectus if it is sold to a qualified plan. b.) If you are licensed to sell life insurance and fixed annuities in your own state, you can sell those same products in all states except New York without additional licensing. c.) In almost all states,...
Which of the following statements about annuities are t rue ? Check all that apply A...
Which of the following statements about annuities are t rue ? Check all that apply A When equal payments are made at the end of each period for a certain time period, they are treated as ordinary annuities. B An ordinary annuity of equal time earns less interest than an annuity due. C When equal payments are made at the end of each period for a certain time period, they are treated as an annuity due. D A perpetuity is...
7. Present value of annuities and annuity payments The present value of an annuity is the...
7. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year...
Question 1 (1 point) John is evaluating which investment would be best for his company. He...
Question 1 (1 point) John is evaluating which investment would be best for his company. He wants to determine the future value of a certain investment that has the following information: PV = $200 INT = 0.1 or 10% N = 1 (years) According to this information, what would be the future value of this investment? $110.67 $200.50 $220 None of the above Question 2 (1 point) Which of the following is a key component of discounted cash flows? Periods...
11. John purchased a variable annuity with a premium deposit of $30,000. He allocated these funds...
11. John purchased a variable annuity with a premium deposit of $30,000. He allocated these funds equally among three of the contract's investment options: a domestic stock account fund, a long-term bond account fund, and the fixed account fund. How much of John's original investment will the insurer guarantee? (Search Chapter 2) a. $10,000 b. $20,000 c. $30,000 d. $0 · 12. With respect to the current interest rates that are declared and credited to traditional fixed annuities, which of...
When firms consider issuing equity, or 'stock', which is a share in the ownership in the...
When firms consider issuing equity, or 'stock', which is a share in the ownership in the firm, the cost can be estimated by using a number of approaches. The most frequently used today is the capital asset pricing model (CAPM). This model says that the market-required return on any capital asset (equity or stock being examples of 'capital assets') can be estimated by considering the risk-free rate of return, because investing means that consumption must be delayed, plus an adjustment...
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
Term Answer Description A. This is the fund available to the purchaser's beneficiaries. Single premium annuity contract Immediate annuity 0 This annuity's monthly income varies as a function of the insurer's actual investment experience. 0 C. Installment premium annuity contract The insurance company safeguards the principal and agrees to a minimum interest rate over the life of the contract. Survivorship benefit 0 Often purchased by individuals, this annuity allows periodic payments made over time. This type of contract allows cash...
7. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. O Ordinary annuities make fixed payments at the beginning of each period for a certain time period. An annuity is a series of equal payments made at fixed intervals for a specified number of periods....
I need help answering questions 17-25 please!
17. At the age of 68, Seth elected a life and 10-year term certain option for the payout of his $100,000 annuity. All of the following statements are true EXCEPT: a. The annuity will make income payments for a minimum of 10 years. b. Seth will receive an income stream for as long as he lives. C. At Seth's death, his beneficiary will receive a minimum of $100,000. d. If Seth were to...
Question 1 (1 point) John is evaluating which investment would be best for his company. He wants to determine the future value of a certain investment that has the following information: PV = $200 INT = 0.1 or 10% N = 1 (years) According to this information, what would be the future value of this investment? $110.67 $200.50 $220 None of the above Question 2 (1 point) Which of the following is a key component of discounted cash flows? Periods...
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Caculate the PH THANK YOU!
[OH−] = 1.9×10−7 M
[OH−] = 1.6×10−8 M
[OH−] = 7.2×10−11...
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