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.
1. The economic system that is most indicative of Capitalism is known as a: 1 point
a. Command Economy
b. Free Market
c. Mixed Economy
d. Fascism
Answer:
b
Explanation:
The difference in income between the richest and poorest citizens is called a command economy. unemployment. private property. the wealth gap.
Answer:
the wealth gap.
Explanation:
The difference in income between the richest and poorest citizens is called the wealth gap.
This ultimately implies that, the wealth gap is the difference between the richest and poorest citizens living in a geographical location based on the level of their assets and net worth i.e assets minus their debts.
Hence, the information generated by the government based on the wealth gap of its citizens is typically used for formulating economic policies, plan and financial budgets.
The difference in income between the richest and poorest citizens is called the wealth gap.
What is wealth gap?Wealth gap can be defined as the difference in the income earned by the richest and the poorest citizen.
When a rich person earn more than a poor person this indicate a disparity in wealth distribution between the rich and the poor.
This tend to lead to what is called wealth gap based on the fact that their is no equality as the rich earn more than the poor.
Inconclusion the difference in income between the richest and poorest citizens is called the wealth gap.
Learn more about wealth gap here:https://brainly.com/question/4517769
1. The supplies of the materials are abundant and can suffice the demand of
the consumers.
In the United States, people are sorted into different tax brackets so that they pay differing amounts of taxes based on their income level. Which type of tax system does this BEST demonstrate?
A. regressive
B. progressive
C. proportional
D. flat
Answer:
B. progressive
Explanation:
In a progressive tax system, the tax rate imposed on individuals and firms is based on their income levels. A low tax rate is applied to low-income earners. As income levels increases, the tax rate also increases. This means that the poor are taxed using lower tax rates compared to the wealthy.
A progressive tax system promotes equity and fair distribution of wealth. The poor have little; hence pay low taxes while the rich pay higher amounts.
Answer:
Progressive
Explanation:
Got it right on the test nun to worry about.