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makkiz [27]
3 years ago
13

Suppose you retire at age 70. You expect to live 20 more years and to spend $55,000 a year during your retirement.How much money

do you need to save by age 70 to support this consumption plan? Assume an interest rate of 7 percent.
Business
1 answer:
LenaWriter [7]3 years ago
6 0

Answer:

individual he need save = $582.670

Explanation:

given data

time = 20 year

spend = $55,000

interest rate = 7 percent = 0.07

solution

we get here first  annuity factor that is express as

annuity factor = \frac{1}{rate} -\frac{1}{rate*(1+rate)^{time}}   .........1

put here value

annuity factor = \frac{1}{0.07} -\frac{1}{0.07*(1+0.07)^{20}}

annuity factor =  10.59%  

and here individual he need save will be

individual he need save = $55,000 × 10.59%

individual he need save = $582.670

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For the year ended December 31, 2021, Norstar Industries reported net income of $965,000. At January 1, 2021, the company had 1,
MArishka [77]

Answer:

0.78

Explanation:

The computation of the earning per share is given below;

= $965,000 ÷ 1,239,000

= 0.78

The 1,239,000 comes from

= 1,070,000 × 12 ÷ 12 + 85000 × 8 ÷ 12 + 96,000 × 7 ÷ 12 + (1,070,000 + 56,667) × 5%

= 1,070,000 + 56,667 + 56,000 + 56,333

= 1,239,000

5 0
3 years ago
Ceteris paribus, when the price of tuition increases, fewer people will choose to go to college. What do we mean by ceteris pari
-Dominant- [34]

Answer:

Option "D" is most suitable answer for the question.

Explanation:

Ceteris paribus involves keeping all other variables stable. So in our situation, because we recognize that a rise in tuition fees could result in fewer people deciding to join college, we believe that other causes that we don't realize might affect fewer people choosing to join university will stay.

Therefore Option "D" is the most suitable option for the above type of problem.

8 0
3 years ago
If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___. g
Llana [10]

Answer:

If the reserve requirement is 20 percent, then excess reserves of $800 can increase M1 money supply by ___.

$3,200.

Explanation:

a) Data and Calculations:

Excess reserves = $800

Reserve requirement = 20%

Therefore, M1 money supply = $800/20% = $4,000

The increase in the M1 money supply will be $3,200 ($4,000 - $800)

b) The amount of funds that a bank is required by the central bank to hold in reserve to meet liabilities in case of sudden withdrawals by depositors is called the reserve requirement. It is usually stated as a percentage by the Fed Reserve.  The Fed uses reserve requirement as a tool to increase or decrease money supply in the economy and influence interest rates.  What the Fed does with the reserve requirement, therefore, depends on the monetary policy that it chooses to respond to the money market.

3 0
3 years ago
Some sellers of used cars provide warranties to buyers, with the aim of reassuring buyers that the car is of good quality. These
NISA [10]

Answer:  

Adverse selection

                         

Explanation:

Adverse selection typically refers to such a circumstance when sellers possess knowledge that customers just don't have, about some type of quality of products — in other terms, it is a method of leveraging asymmetric data.

In other words, Asymmetric information, often referred to as intelligence loss, occurs when any group has better knowledge of data than any of the other group.

Thus, we can conclude that the warranty is given to ensure customers that nothing has been hidden from them.

5 0
3 years ago
Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at
Sphinxa [80]

<u>Solution and Explanation:</u>

The correct answer is I, II, III, and IV

The reason behind is that joint cost is always related to the multifarious products.  Joint expense is the assembling cost brought about on a joint creation process which takes regular sources of info however at the same time delivers various items called joint-items, for example, preparing of raw petroleum at the same time yields gas, diesel, stream fuel, greases and different items.  

So, as to apportion expenses to such joint items, bookkeepers need to utilize an appropriate cost portion technique on a predictable premise. The joint cost alludes to that cost which is brought about before the split-off point on the creation or assembling of numerous items, by expending similar data sources or factors of creation.

5 0
3 years ago
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