Business, 30.03.2021 02:20 bankzdown

You are an actuary for ABC Insurance Company. You currently have an annuity product that will pay a level $1,000 per year at the end of each year for 20 years. You are considering adding a second annuity that is identical to the first, but it has a cost of living adjustment (COLA) of 4% per year starting in the second year. A COLA is an increase in payments that is used to compensate for the loss in purchasing power of money due to inflation. What is the difference in the cost to your company of the COLA annuity compared to the level annuity assuming an annual effective rate of interest of 5.00%

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 09:50

Beck company had the following accounts and balances at the end of the year. what is net income or net loss for the year? cash $ 74 comma 000 accounts payable $12,000 common stock $21,000 dividends $12,000 operating expenses $ 13 comma 000 accounts receivable $ 49 comma 000 inventory $ 47 comma 000 longminusterm notes payable $33,000 revenues $ 91 comma 000 salaries payable $ 30 comma 000

Answers: 1

Answer

Business, 22.06.2019 13:30

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Answers: 3

Answer

Business, 22.06.2019 16:10

Answer the following questions using the banker’s algorithm: a. illustrate that the system is in a safe state by demonstrating an order in which the processes may complete. b. if a request from process p1 arrives for (1, 1, 0, 0), can the request be granted immediately? c. if a request from process p

Answers: 1

Answer

Business, 22.06.2019 18:00

David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?

Answers: 1

Answer

You know the right answer?

You are an actuary for ABC Insurance Company. You currently have an annuity product that will pay a...

Questions