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Molodets [167]
3 years ago
14

"kirk started saving for retirement at age 50 with plans to retire at age 70. he invested an average of $300 per month in variou

s securities, with an average annual return of 4% adjusted for inflation. assuming monthly compounding, how much has kirk saved at the start of retirement?"
Business
2 answers:
rusak2 [61]3 years ago
8 0
Saving period = 70 - 50 = 20 years
Number savings, n = 20*12 = 240 months
Monthly savings, P = $300
Annual interest rate = 4% = 0.04
Monthly interest rate, r = 0.04/12

If FV is the amount saved at the time of retirement,

FV = P{(1+r)^n-1)/r} = 300{(1+0.04/12)^240-1)/0.04/12} = $110,032.39
Gala2k [10]3 years ago
5 0

Answer:

The answer is FV = $110,032.39

Explanation:

Monthly Savings, P = $300

Saving period = 70 - 50 = 20 years

Number of months of savings, n = 20 * 12 = 240 Months

Annual interest rate = 4% = 0.04

Monthly interest rate, r = 0.04/12 = 0.0033

The formula for finding FV is as follows. Just by putting data in it, we can find the answer.

FV = P { (1+r) ^ n-1) / r }

FV = 300 { (1+0.04/12) ^ 240-1) / 0.04/12 }  

FV = $110,032.39

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Answer:

The correct answer is 2) Inseparability.

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There is the talk of inseparability when a product is sold to a customer for use, and the customer generates the relationship between the sales and consumption processes to qualify the service or product as good or bad. Since for the customer the way they treat it while buying the product or making use of it, it is relevant to take into account the quality of the product.

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4 0
3 years ago
Although most people want maximum attainment of every economic goal, there is the operating reality of ________________________
bixtya [17]

Although most people want to maximum attainment of every economic goals, there is the operating reality of opportunity cost that causes us to give up some of one thing if we want more of another.

<h3>What is Opportunity Cost?</h3>

Opportunity cost is a concept in economics and it refers to the cost of something that has to be given up to enjoy something better. This can be for example the benefits of second best alternatives (when the first best is chosen) or alternative use of something, which is not decided on (the cost of not using land for farming and using it for building a house instead).

It is the amount or benefits an individual or organization get when they choose a particular products over another one.

The advantage could be monetary benefits.

Therefore, we can conclude that Although most people want to maximum attainment of every economic goals, there is the operating reality of opportunity cost that causes us to give up some of one thing if we want more of another.

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8 0
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The perpetual equivalent annual cost is - $35013

<h3 /><h3>The perpetual annual cost calculation</h3>

interest i = 10%

Period = n = 7 years

Formula

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= 0.1054

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