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brilliants [131]
3 years ago
6

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre

ntly have no retirement savings but plan to save an equal amount each year for the next 38 years until your retirement. How much do you need to save each year if you can earn 7.5 percent on your savings?Select one:a. $3,333.33b. $2,640.85c. $3,146.32d. $2,889.04e. $3,406.16
Business
1 answer:
Fynjy0 [20]3 years ago
5 0

Answer:

The correct answer is $7,056.46

Explanation:

Giving the following information:

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?

Final value= 55,000*25= 1,375,000

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

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3 years ago
Why would a producer conduct a marginal analysis?
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B to determine whether a price increase

Explanation:

cuz I said

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3 years ago
Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an
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Answer:

(a) 2

(b) 2.25

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Explanation:

To solve this question we need to remember that

Total \, Productivity = \frac{Total\,Ouput}{Total \, Man \, Hours}

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5 0
3 years ago
A call center with access to customer credit reports selling customer data to an outside organized crime organization for the pu
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8 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B
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7 0
3 years ago
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