1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stepladder [879]
1 year ago
10

melissa wants to retire with $40,000 per month. she needs $4,000,000 in principal at the time she retires in order to generate t

his amount of monthly income if the interest rate is 12%. if melissa has 25 years before retirement and has $80,000 to invest today, what simple interest rate does she need to achieve the necessary amount of principal?
Business
1 answer:
Contact [7]1 year ago
5 0

190 % of simple interest rate does she need to achieve the necessary amount of principal.

we know that

The simple interest formula is equal to

A=P(1+rt)

where

A = Final Investment amount

P = Principal amount of money

r = rate of interest  

t = Number of Time Periods

in this problem we have

t= 25 years

P= $80,000

A= $4,000,000

r=?

substitute in the formula above

4,000,000 = 80,000(1+25r)

50 = 1+25r

50-1=25r

49=25r

r=1.96

Convert to percentage

r = 1.9 * 100

  = 190 %

The simple interest rate is 190%

learn more about simple interest here

brainly.com/question/25845758

#SPJ4

You might be interested in
Jess, Frank, and Ted are coworkers at Crossroad Inc. Having worked at CI for five years now, the three are discussing their care
Papessa [141]

Answer:

c. affective commitment.

Explanation:

Based on the information provided within the question it can be said that in this scenario Ted is exhibiting affective commitment. This refers to the level of degree in which a person "wants" to continue working at the company in which they currently work. For Ted, he wants to continue working at CI because of the relaxed atmosphere and his friends. He does not feel a sense of debt to the company or believes he "needs" to stay, but instead decides he "wants" to stay everyday.

8 0
3 years ago
Suppose that $ 5 000 is invested at 3.9 % annual interest​ rate, compounded monthly. How much money will be in the account in​ (
BlackZzzverrR [31]

Answer:

(A) $5,131.5

(B) $12,729.5

Explanation:

The interest earned on the value of interest earned before is the compounded interest. Compounding is the reinvestment of the amount earned before and take return over it too.

As per given data

Invested amount = $5,000

Interest rate = 3.9%

Interest is compounded monthly

Monthly rate = 3.9% / 12 = 0.325%

Formula for the accumulated amount of investment

A = P ( 1 + r )^n

Accumulated Money when $5,000 is

(A) Invested for 8 months

A =  $5,000 ( 1 + 0.325% ) ^8

A = $5,131.5

(b) Invested for 24 years or 288 months (24 x 12)

A =  $5,000 ( 1 + 0.325% ) ^288

A = $12,729.5

4 0
3 years ago
Read 2 more answers
The main function of – banks is to accept deposits and then to lend the same money (minus –) back out. Banks make a profit by ch
Lynna [10]

Answer:

The main function of COMMERCIAL banks is to accept deposits and then to lend the same money (minus REQUIRED RESERVES) back out. Banks make a profit by charging a higher interest rate on LOANS than the interest rate they pay on DEPOSITS. Through the loan process, banks are actually able to CREATE/MULTIPLY money.

Explanation:

Commercial banks are financial institutions that engages in accepting deposits from the general population and giving back loans for investment in the sole aim of making profits.

Required reserves is the amount of money a bank must hold in order to meet liabilities when there are sudden withdrawals.

Loans are money borrowed out by a financial institution in exchange for the repayment of the loan plus interest.

Deposits are the total amount of money paid into the bank.

Money creation refers to the increase in amount of money supplied from initial deposit.

3 0
3 years ago
In the models that describe population growth, r stands for __________.in the models that describe population growth, r stands f
Julli [10]
<span>In the models that describe population growth, R stands for per capita population growth rate. The per capital growth rate is determined by the number of births and deaths within a city, state or country. In the models, the R will represented these numbers. </span>
4 0
3 years ago
Which of the following is an example of an unsought good? A. Cameron purchases a new bike. B. Jordan buys paper towels. C. Taylo
NikAS [45]

Answer:

D. Riley buys new windshield wipers for her car.

Explanation:

By definition unsought goods are those which are not purchased out of want or desire, but the purchases of which arise due to any of the following circumstances:

  • danger - for example a fire extinguishers sought in the incident of a fire
  • fear - for example the fear of crashing into another car (in this case)
  • unexpected events - for example funeral services sought at the time of death

4 0
3 years ago
Other questions:
  • You are given an investment to analyze. the cash flows from this investment are end of year 1. $19,340 2. $2,280 3. $26,600 4. $
    8·1 answer
  • Ideally, the price established for a transfer of goods or services between two decentralized organizational units within a compa
    5·1 answer
  • The development of a new information system is economically justified if the _____.
    8·1 answer
  • Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $
    5·1 answer
  • Future Clothes Inc., a publicly-traded company, designs and manufactures wearable technology. What approach should Future Clothe
    8·1 answer
  • Timothy Carter went out to eat with his girlfriend at a fancy restaurant. When he tried to pay the bill with his Mastercard cred
    11·1 answer
  • QUESTION 5 of 10: True or False: Corporate bonds generate higher rates of return than U.S. Treasury bonds.
    9·1 answer
  • _____-is the cost of the merchandise that the merchandiser has sold.
    10·2 answers
  • Fundamentally, economics deals with:______.
    8·1 answer
  • Text: "managerial accounting: tools for business decision making " 9th edition, isbn 9781119709589
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!