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Gnom [1K]
3 years ago
10

You have $400,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out Chegg Solution eac

h month, if you want to be able to take withdrawals for 20 years?
Business
1 answer:
MatroZZZ [7]3 years ago
6 0

Answer:

$2,639.91

Explanation:

In this case, you expect to make 240 monthly withdrawals. Calculating this is similar to calculating the payments for paying a credit.

  • principal = $400,000
  • interest rate = 0.05/12 = 0.004167
  • n = 240

payment = principal x rate x [(1 + r)ⁿ] / [(1 + r)ⁿ - 1]

payment = $400,000 x 0.004167 x [(1 + 0.004167)²⁴⁰] / [(1 + 0.004167)²⁴⁰ - 1] =  $400,000 x 0.004167 x (2.712864 / 1.712864) = $2,639.91

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The expected average rate of return for a proposed investment of $5,490,000 in a fixed asset, using straight-line depreciation,
Taya2010 [7]

Answer:

10%

Explanation:

Since there is no residual value, the full amount invested should be used to calculate the average rate of return. The average rate of return is determined as the average income divided by the invested amount.

If the total income was $10,980,000 over 20 years, the average income is:

I_{avg} =\frac{\$10,980,000}{20}=\$549,000

If the invested amount was $5,490,000, the average rate of return is:

r_{avg} = \frac{\$549,000}{\$5,490,000}=0.10 = 10\%

3 0
3 years ago
Mechelle has a life estate in a property in rural Maine. Mechelle has allowed people to camp and park in the backwoods of the pr
Reika [66]

The scenario that's illustrated regarding the property in this case is improper dominion.

<h3>What is dominion?</h3>

It should be noted that in law, dominion simply means the right to control the ownership of a a property.

In this case, since Mechelle has allowed people to camp and park in the backwoods of the property, leaving piles of trash everywhere and thereby diminishing the value of the property, this illustrates improper dominion.

Learn more about property on:

brainly.com/question/2475734

3 0
3 years ago
When using an rss feed within hootsuite, you can limit the amount of content being automatically pushed out to your followers by
Solnce55 [7]

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5 0
4 years ago
Chobani launched a campaign, called "the break you make," in 2015 to increase awareness of the chobani flip, an afternoon snack
Andreas93 [3]
Research determined that the campaign was very successful
5 0
3 years ago
​Timothy's gross pay for this month is​ $8,950. His gross​ year-to-date pay, prior to this​ month, totaled​ $110,500. What is th
const2013 [10]

Answer:

The amount of FICA tax withheld is $532.78

Explanation:

Earnings subject to tax = $117,000

Earnings for current month = $110,500

Therefore, the money subject to tax = Earnings subject to tax - Earnings for current month = $117,000 - $110,500 = $6500

Gross pay for current month =​ $8,950

Tax rate OASDI =  OASDI rate × money subject to tax = 6.2% × $6500 = 0.062 × $6500 = $403

Tax rate Medicare = Gross pay for current month  × Medicare rate = $8950 × 1.45% = $8950 × 0.0145 = $129.775

The amount of FICA tax withheld = Tax rate OASDI + Tax rate Medicare =  $403 + $129.775 = $532.78

The amount of FICA tax withheld is $532.78

5 0
3 years ago
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