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bixtya [17]
3 years ago
8

You believe you will spend $47,000 a year for 13 years once you retire in 26 years. If the interest rate is 7% per year, how muc

h must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) g
Business
1 answer:
nika2105 [10]3 years ago
4 0

Answer:

Annual deposit= $8,896.79

Explanation:

Giving the following information:

You believe you will spend $47,000 a year for 13 years once you retire in 26 years.

The interest rate is 7% per year.

<u>First, we need to calculate the total amount required:</u>

FV= 47,000*13= $611,000

<u>Now, using the following formula, we can determine the annual deposit:</u>

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

A= annual deposit

Isolating A:

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

A= (611,000*0.07) / [(1.07^26) - 1]

A= $8,896.79

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Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 6% on your investments
AURORKA [14]

Answer:

$12,015 approx.

Explanation:

To calculate present value of a future amount, the future amount is discounted at the rate of interest for the period of investment, which reveals present value as on today. The technique is referred to as discounting technique.

Suppose P denote the amount invested today, which when matured after period of two years yields $13500. Following formula is used for calculating the money invested:

A =\ P (1\ +\ \frac{R}{100}) ^{n}

wherein, A = Amount

              P = Principal

              R = Rate of interest

               n = number of years

13500 =\ P (1\ +\ \frac{6}{100}) ^{2}

13,500 = 1.1236 P

⇒ P = 12,015 Approx.

Thus, $12015 is required to be deposited today so as to yield $13,500 after 2 years compounded at 6% per annum rate of interest.

5 0
3 years ago
Read 2 more answers
Developing effective marketing communications starts with​ __________.
AlexFokin [52]
Developing effective marketing communications starts with​ analyzing and understanding the current clients and why they chose those products or services. In the first step from the marketing communication the company should get insights into when, where, why and how people purchase the products.T<span>he main focus of the marketing communication strategy is to gain awareness.</span>
8 0
3 years ago
Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerical Bank.
exis [7]

The total decrease in deposits in the banking system is $250,000.

<h3>What is total decrease in deposits?</h3>

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves.

Decrease in deposits = amount withdrawn / required reserve ratio

$25,000 / 0.1 = $250,000

To learn more about reserve ratio, please check: brainly.com/question/6831267

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4 0
2 years ago
Blue Spruce Corp. had the following transactions.
tatuchka [14]

Answer:

1. Dr Cash $10,300

Cr Land $8,240

Cr Gain on Sale of Land $2,060

2. Dr Cash $21,200

Cr Common Stock $21,200

3. Dr Depreciation Expense $12,400

Cr Accumulated Depreciation - Building $12,400

4. Dr Salaries Expense $7,200

Cr Cash $7,200

5. Dr Equipment $8,100

Cr Common Stock $1,200

Cr Additional Paid-in Capital $6,900

6 Dr Cash $1,296

Dr Loss on Sale of Equipment $1,944

Dr Accumulaed Depreciation -Equipment $7,560

Cr Equipment $10,800

Explanation:

Preparation of the journal entry.

1. Dr Cash $10,300

Cr Land $8,240

Cr Gain on Sale of Land $2,060

($10,300-$8,240)

2. Dr Cash $21,200

Cr Common Stock $21,200

3. Dr Depreciation Expense $12,400

Cr Accumulated Depreciation - Building $12,400

4. Dr Salaries Expense $7,200

Cr Cash $7,200

5. Dr Equipment $8,100

Cr Common Stock $1,200

(1,200*$1)

Cr Additional Paid-in Capital $6,900

($8,100-$1,200)

6 Dr Cash $1,296

Dr Loss on Sale of Equipment $1,944

($10,800-$7,560-$1,296)

Dr Accumulaed Depreciation -Equipment $7,560

Cr Equipment $10,800

5 0
3 years ago
SmartSC purchases from Supplier A are priced at $30 each and used at the rate of 600 units per month. Components purchased from
artcher [175]

Answer:

SmartSC

The economic order quantity (EOQ) for Supplier A is:

= c) 253

Explanation:

a) Data and Calculations:

                               Supplier A       Supplier B

Price per unit                $30                 $6

Annual unit demand 7,200            3,000

Annual holding cost      $9                 $1.80 ($6 * 30%)

Ordering cost              $40

Economic order quantity for Supplier A = square root of (2 * D * S)/H

where D = Annual demand in units

S = Ordering cost per order

H = Holding cost per unit

= square root of  (2 * 7,200 * $40)/$9

= square root of 64,000

= 253

7 0
3 years ago
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