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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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Which financial statement would best display a company's plant, property, and equipmnt used everyday
yuradex [85]

Answer:

Balance sheet

Explanation:

Balance sheet is referred to as the statement of assets and liabilities. Property plant and equipment are shown in balance sheet with a schedule of addition, deletion and depreciation is attached to it. Hence, the financial statement that would best display a company's plant, property and equipment used everyday is the Balance sheet.

4 0
3 years ago
A+piece+of+land+produces+an+income+that+grows+by+5%+per+annum. +if+the+first+year’s+income+is+$10,000,+what+is+the+value+of+the+
Aleonysh [2.5K]

If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

<h3>Present value of the land</h3>

Using this formula

Present value=Income/Rate per annum

Let plug in  the formula

Present value=$10,000/0.05

Present value=$200,000

Therefore If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.

Learn more about Present value of land here:brainly.com/question/14958247

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6 0
2 years ago
Tonya contributes $150,000 to Swan, Inc., for 80% of the stock. In addition, she loans Swan $600,000. The maturity date on the l
USPshnik [31]

Answer:

A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.

Explanation:

Loans received under $385 should not be reclassified as equity.

Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.

Therefore,

Interest expenses = 600000 x 3%

                              = $18000

8 0
3 years ago
The daily profit p in dollars of a company making tables is described by the function upper p left parenthesis x right parenthes
Assoli18 [71]

The following equation of parabola is given:

p(x)= - 5 x^2 + 240 x - 2475

where p(x) = y

This is a standard form of the parabola. We need to convert this into vertex form of equation. The equation must be in the form:

y – k = a (x – h)^2

Where h and k are the vertex of the parabola. Therefore,

y = - 5 x^2 + 240 x - 2475

y = -5 (x^2 – 48 x + 495)

Completing the square:

y = -5 (x^2 - 48 x + 495 + _) - (-5)* _

Where the value in the blank _ is = -b/2

Since b = -48        therefore,

y = -5 (x^2 – 48 x + 495 + 81) + 405

y – 405 = -5 (x^2 – 48 x + 576)

y – 405 = -5 (x – 24)^2

Therefore the vertex is at points (24, 405).

The company should make 24 tables per day to attain maximum profit.

4 0
3 years ago
Apple is considering increasing the amount of money it spends on product development.
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7 0
3 years ago
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