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Sauron [17]
3 years ago
7

n investor has $100,000 invested in an account that earns 5% annually. The investor wishes to withdraw $12,000 per year. If the

investor withdraws $12,000 annually, the account will be fully depleted in:

Business
1 answer:
lawyer [7]3 years ago
3 0

Answer:

11 years

Explanation:

For computing, the number of years or the account will be fully depleted we need to apply the NPER formula i.e to be shown in the attachment below:

Given that,  

Present value = $100,000

Future value = $0

PMT = $12,000

Rate of interest = 5%

The formula is shown below:

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

The present value come in negative

So, after applying the above formula, the number of years in which the account is depleted is 11 years

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According to the Investment Company Act of 1940, the definition of "investment company" could include which of the following
kicyunya [14]

Answer:

Option (B) is the right answer.

Explanation:

According to the investment company Act of 1940, the investment companies are those companies whose main business is to gathers investment capital to invest them in marketable securities.

Hence According to the scenario, the most appropriate answer is option (B).

While the other option is incorrect because of the following reason:

  • Brokers/dealers can not be considered as an investment company because they are not the company.
  • Pooled investments in metals are not an investment company but considered as the commodity pool.
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7 0
3 years ago
First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.9 percent compou
melomori [17]

Answer:

First National EAR 14.48%

First United EAR 14.38%

Explanation:

Calculation to determine Calculate the EAR for First National Bank and First United Bank.

Using this formula

EAR = [1 + (APR / m)]m − 1

Let plug in the formula

First National EAR = [1 + (.136 / 12)]12 − 1

First National EAR= .1448*100

First National EAR=14.48%

First United EAR = [1 + (.139 / 2)]2 − 1

First United EAR = .1438*100

First United EAR = 14.38%

Therefore the EAR for First National Bank and First United Bank will be :

First National EAR 14.48%

First United EAR 14.38%

8 0
3 years ago
The after-tax cost of debt ________ the before-tax cost of debt for a firm that has a positive marginal tax rate.
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Answer:

the correct answer is

A) is always less than

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3 years ago
hen Target sells winter coats, it sends them to stores at different times of the year. This is an example of ________. Group of
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Climate segmentation

Explanation:

Climate segmentation -

It refers to the practice of focusing a particular weather , in order to sell goods and services according to the respective climate , is referred to as Climate segmentation .

In this method potential people are targeted on the basis of the requirement of goods for a particular weather .  

Hence , from the given scenario of the question ,

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Travka [436]

The answer is Bottom-Up estimates.

Bottom-up estimating involves the estimation of work at the lowest possible level of detail.

The estimates so calculated are then aggregated to arrive at summary totals. The probability to meet the estimated amounts improves substantially by building detailed cost and time estimates for a work package.

In other words, bottom-up estimating approximates an overall value by approximating values for smaller items and using the sum of these values as the overall value.

This cost estimation tool is often used when detailed information is available about lower-level activities. It can be especially useful when estimating projects that are similar to ones that were completed in the past.

Hence, a Bottom-Up estimate is a cost estimation tool that involves estimating individual work items or activities and summing them to get a project total.

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