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
Lisa [10]
2 years ago
8

In 2009, Harold deposited $50,000 in an account paying 6% annual interest. Harold wants to make five equal annual withdrawals fr

om the account starting with the first withdrawal in 2020. Further, Harold wants to have exactly $100,000 left in the account in 2026. How large can each of the annual withdrawals be
Business
2 answers:
kipiarov [429]2 years ago
8 0

Answer:

Yearly withdrawals: $ 5,796.954

Explanation:

Future value in 2020:

Principal \: (1+ r)^{time} = Amount

Principal 50,000.00

time 11.00

rate 0.06000

50000 \: (1+ 0.06)^{11} = Amount

Amount 94,914.93

Present Value of the 100,000 dollar in 2026 at 2020:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $100,000.00

time  6.00

rate  0.06000

\frac{100000}{(1 + 0.06)^{6} } = PV  

PV   70,496.0540

<u><em>Amount available for the withdrawals:</em></u>

94,914.93 - 70,496.05 = 24.418,88‬

Annuity of 5 years that is possible with the available amount:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 24,418.88

time 5

rate 0.06

24418.88 \div \frac{1-(1+0.06)^{-5} }{0.06} = C\\

C  $ 5,796.954

denpristay [2]2 years ago
5 0

Answer:

Present value (PV) = 50,000

Future value (FV) = X

Rate of Interest (R) = 6%

No. of years (N) = 17

Balance Remain at the end of 17 years is 100,000

Thus, the Computation is as follows

FV = PV*((1+R/100)^N)/(1+R/100)  

FV= 50,000*((1+6/100)^17) / (1+6/100)

FV= 50,000*((1.06)^17) / 1.06

FV= 50000*2.7/1.06

FV= 135,000/1.06

FV = $127,358.49

Amount is required in the account = $ 100,000  

As, the total amount of 5 withdrawals ($127,358.49 - $100,000) = $27,358.49

The equal amount of Annual Withdrawal (Total Withdrawal / 5) = $5,468.82

You might be interested in
Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good r
snow_lady [41]

Answer:

The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.

Explanation:

The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.

As residual income is referred to income that calculated after deducting all debt and expenses occur on the project. ROI is a way to predict the profit of the project while residual income calculates the net income that the organisation generates from the project.

3 0
3 years ago
A. she was born on august? 4, 1950, and lived at 37 gesner street until she was sixteen.
Korolek [52]
??? C ???

whats the question here
4 0
3 years ago
An Internet business prides itself in its ability to fill customer’s orders in six calendar days or less on average. Periodicall
LenaWriter [7]

Answer:

Answer is explained in the attachment.

Explanation:

Download pdf
3 0
3 years ago
In a criminal tax case, Darth Vader was charged with several counts of tax evasion and filing a false income tax return, stemmin
Vitek1552 [10]

Answer:

<em>Darth's response is not adequate as he has systemically illegitimately manipulated the Jedi's assets to evade taxes. Therefore all those funds in question will be taken into account when measuring Jedi's taxable income. </em>

It can be inferred after that that that the Jedi has some existing gain / retained earnings or not.

<em>When Darth considers himself guilty, he shall be liable for charges of fine, reward and prosecution under sec.7201.</em>

<em></em>

7 0
3 years ago
Citibank need to borrow $1 million for 6 months starting in 2 years. Citibank is concerned about the interest rate would like to
Shkiper50 [21]

Answer:

"$ 15,000" is the correct solution.

Explanation:

The given values are:

Agreed fixed rate,

= 0.04

LIBOR rate,

= 0.01

No. of borrowing months,

= 6

National amount,

= 1000000

Now,

The net payment will be:

= National \ principal*(Floating \ rate - Fixed \ rate)\times \frac{No. \ of \ months}{12}

On substituting the above values, we get

= 1000000\times (0.01-0.4)\times \frac{6}{12}

= 1000000\times (-0.03)\times 0.5

= -15,000 ($)

3 0
3 years ago
Other questions:
  • Into what three general categories can food service employees be grouped?
    8·2 answers
  • Managing proactively instead of reactively is an example of which of the following
    12·2 answers
  • Stock price is $150. You see an at-the-money call option trading at $15, and at-the-money put trading at $5. The options have th
    8·1 answer
  • Rendezvous Cafe's suit against Sanitary Waste Services, Inc., the court issues a judgment in Rendezvous's favor. The judgment ca
    12·1 answer
  • In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. W
    8·1 answer
  • Mediocre economists often consider only the immediate apparent effects of a change, whereas a good economist will also consider
    10·1 answer
  • Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variabl
    7·1 answer
  • A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,9
    10·1 answer
  • The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs. at $22.50 Standard: 8,4
    5·1 answer
  • Rizzo Company has debentures ($1,000 par) outstanding that are convertible into the company's common stock at a price of $25. Th
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!