Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. how did you get 2.39% for the real rate of interes

how did you get 2.39% for the real rate of interest? when I do the...

70.2K

Verified Solution

Question

Finance

how did you get 2.39% for the real rate of interest? when I do the equation I keep getting 5.27%image

Using the "Desired Income" method, how much insurance would be needed if you want to provide your survisors with a real annual income of $55,000 at the beginning of each year? (Assume a before-tax rate of return of 7%, a marginal tax rate of 22%, and annual inflation rate of 3% per year) Expert Answer o bjmailster answered this 2,703 answers Was this answer helpful? 2 After tax return- Real rate of interest: Life Insurance needed: 5.46%-0.07*(1-022) 2.39%-((100%+C3)/(100%+3%)-1 4 55000/C4 5 2302846

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

Finance
1.2K views

Provide recommendations for strategies that will position hospitals for viabilty and future value creation with Value...

Physics
1.2K views

An RLC series circuit has a 2.60 Ω resistor, a 200 µH inductor, and an 82.0...

Accounting
1.2K views

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...

Biology
1.2K views

When Marianne Moore says (Lines 14-16 of "Poetry") that "we do not admire what we...

Basic Math
1.2K views

Write the equation of the ellipse that has a center at 1 6 a focus...

Statistics
1.2K views

A firm uses a serial assembly system and needs answers to the following a An...

Calculus
1.2K views

Evaluate the following integral x 4 1 x 2 TIT 000 x 4 1 2...

Calculus
1.2K views

Use the Definition to find an expression for the area under the graph of f...

Algebra
1.2K views

Dilate the figure by the scale factor Then enter the new coordinates K 7 A...

Algebra
1.2K views

An orange has a diameter of 3 1/2 inches. What is the approximate volume of...

Accounting
1.2K views

Assets are defined as resources that are owned by a business and that possess the...

Accounting
1.2K views

26 Oulo Corporation has tswo products in its ending inventory, each asconumted for as the...