Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at retirement in december, you buy a special type

At retirement in December, you buy a special type of insurance policy called an immediate...

90.2K

Verified Solution

Question

Accounting

At retirement in December, you buy a special type of insurance policy called an immediate term annuity. This policy promises to pay the holder (or the holders heirs) $25,000 per year for the next 25 years. Each payment is at the start of the year. (Hence, the first payment will be very shortly after purchase of the policy.) The appropriate discount rate is 2.01% per year, compounded annually. What is the value of this policy to the policy holder?

Do not round at intermediate steps in your calculation. Report your answer in dollars. Enter your answer without the $ symbol.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The water in a 40-L tank is to be heated from 15°C to 45°C by...

Mechanical Engineering
Q

In what ways can firms using SaaS products dramatically lower costs associated with their information systems? Give...

Mechanical Engineering
Q

Some organisms have features that have different functions but similar structures indicating they may have...

Biology
Q

Determine whether the set B is a basis for the vector space V 14 V...

Algebra
Q

Find the missing side or angle using the Law of Cosines and or Heron s...

Algebra
Q

11x 4 X 1 www The solution is Type your answer in interval notation Use...

Algebra
Q

Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct...

Accounting
Q

In advertising by licensees, the Tennessee Real Estate Commission REQUIRES all of the following EXCEPT...

Accounting
Q

Please explain what e mean by core inflation and the reasons for using this concept...

Accounting
Q

You're supposed to use the data for budget and actual as given in Exhibit 8-12,...

Accounting
Q

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,...

Accounting
Q

What is the depreciable period , in terms of QBI deduction, for non-residential real Estate?...

Accounting