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Alisiya [41]
3 years ago
5

Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn 7.5% on his invested funds. How

much could he withdraw at the end of each of the next 25 years and end up with zero in the account? Select one: a. $28,843.38 b. $30,361.46 c. $31,959.43 d. $33,641.50 e. $35,323.58

Business
1 answer:
Alex777 [14]3 years ago
5 0

Answer:

d. $33,641.50

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $375,000

Future value = $0

Rate of interest = 7.5%

NPER = 25 years

The formula is shown below:

= -PMT(Rate;NPER;PV;FV;type)

So, after solving this, the answer would be $33,641.50

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Scenario 1: Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximu
ELEN [110]

Answer:

<em>The question is incomplete, complete question is as follows:</em>

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.

Shift the appropriate curve on the graph to reflect this change.

This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.

Explanation:

<em>To decrease.</em>

Saving is the basis of the loanable finance supply.

<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>

The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.

Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.

5 0
4 years ago
Which type of credit is most likely to be unsecured?
joja [24]

The correct answer is B and D.

B. Credit cards.

D. Personal loans.

Unsecured loans are not backed by collateral. Based on the financial history is how the lender decides if someone qualifies for a loan.

If someone defaults on unsecured loan then the lender can not take your property automatically.

Example of unsecured loans include, student loan, personal loan, and credit cards.

The unsecured loan is not good because the APR is higher than the secured one reason being there is no assets which underlines for the creditor to stop if someone does not pay.

6 0
3 years ago
Read 2 more answers
The classified Balance Sheet will subsection the assets section as follows a. Current Assets and Property, Plant, and Equipment
anyanavicka [17]

Answer:

a. Current Assets and Property, Plant, and Equipment

Explanation:

These classify the assets and liabilities in the classified balance sheet into various types Including assets that are divided into Property, Plant, and Equipment, current assets.

Liabilities are similarly divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet that means

Total assets = Total liabilities + shareholder equity

7 0
3 years ago
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bon
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Answer: Campbell will owe $115,858.25 in federal income tax this year computed as follows:

$115,858.25= $45,353.75+ 33% x ($400,000 - $186,350)).

Campbell's average tax rate is 28.96 percent.

Average Tax Rate = TotalTax / TaxableIncome = $115,858.25 / $400,000 = 28.96

Campbell's effective tax rate is 28.82 percent.

Effective tax rate = TotalTax / TotalIncome = $115,858.25 / ($400,000 + $2000) = 28.82

Campbell is currently in the 33 percent tax rate bracket. Her marginal tax rate on deductions up to $213,650 will be 33 percent. However, her marginal tax rate on the next $5,100 of income will be 33%, and income earned over $405,100 will be 35 percent. Income earned in excess of $406,750 will be taxed at 39.6%.

3 0
3 years ago
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
sladkih [1.3K]

Answer:

$143,750

Explanation:

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PV = $200,000 / (1 + 6%)⁵ = $149,451.63

net lease amount = $790,000 - $149,452 = $640,548

PVIF Annuity due, 6%, 5 payments = 4.546

Annual payment = $640,548 / 4.456 = $143,750

3 0
3 years ago
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