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Ede4ka [16]
3 years ago
14

Your parents will retire in 27 years. They currently have $280,000 saved, and they think they will need $1,900,000 at retirement

. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Business
1 answer:
Ivahew [28]3 years ago
3 0

Answer:

Annual Rate=7.35%

Explanation:

Calculation for the annual interest rate must they earn to reach their goal

Number of years =27

PV =280,000

FV =1,900,000

Using this formula

Annual Rate=(FV/PV)^(1/n)-1

Let plug in the formula

Annual Rate=(1,900,000/280,000)^(1/27)-1

Annual Rate=6.7857^(1/27)-1

Annual Rate=1.07349-1

Annual Rate=0.0735

Annual Rate=7.35%

Therefore the annual interest rate must they earn to reach their goal will be 7.35%

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6 0
1 year ago
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000;
andriy [413]

Answer:

Wilkens' days in inventory for 2017 = 60.833

Explanation:

Given:

Sales = $1,800,000

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Wilkens' days in inventory for 2017 = Number of days in a year / Inventory turnover

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7 0
4 years ago
The intermediate goods are not counted in the calculation of GDP, because: * 2 points A. that involves double-counting. B. these
7nadin3 [17]

Answer:

A. that involves double-counting.

Explanation:

Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.

6 0
3 years ago
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8 0
3 years ago
It can be referred from the text that ...
Contact [7]

This question is incomplete because the text is missing; here is the missing part:

Text 1

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6 0
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