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Alborosie
4 years ago
14

Marie is putting together a retirement plan and is scheduled to retire in 40 years. She is planning to open a retirement account

and invest an equal amount each month into the retirement account. If she expects to earn 10.5% per year in the account and is planning to have $3,000,000 in the account at retirement, what is the amount of the monthly investment?
Business
1 answer:
kap26 [50]4 years ago
6 0

Answer:

R=407.11$

Explanation:

Since the Marie wants to contribute equal amount per month in order to get the $3,000,000 after 40 years, therefore the future value of annuity formula shall be applied to the given question to solve the problem.

Future value of annuity=R[((1+i)^n-1)/i]

R=monthly investment to be made=?

n=number of payments involved=40*12=480

i= interest rate=10.5%/12=0.875%

Future value of annuity=$3,000,000

$3,000,000=R[((1+0.875%)^480-1)/0.875%]

R=407.11$

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Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. S
stira [4]

The question is incomplete:

Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.

-Good guy-bad guy routine

-Browbeating

-Red herring

-Trial balloon

-Lowballing

Answer:

-Red herring

Explanation:

-Goog buy-bad guy routine is a strategy in which one person appears to be on your side and when you get to an agreement, this person goes to the bad guy for approval who will renegotiate.

-Browbeating is a strategy in which the buyer tries to affect the saleperson atittude by saying unflattering things.

-Red herring is a strategy in which one of the parties tries to distract the other one from certain isues to get an advantage.

-Trial balloon is an strategy in which one of the parties says something to the other one to get information about its position in the negotiation.

-Lowballing is an strategy in which the buyer makes a really low offer to test the seller.

According to the definitions, the answer is that the win-lose strategy used by the salesperson is red herring because Clara didn't consider the information related to the delivery when purchasing the units as she was probably distracted by other aspects and didn't consider this.

5 0
3 years ago
______, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with h
Anika [276]

With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.

<h3>What is homemade leverage?</h3>

Generally,  When an investment in a firm that does not use leverage is converted into the impact that leverage has on investment by using personal borrowing, this is an example of homemade leverage.

In conclusion, By utilizing borrowed money plus her own finances to acquire shares in a firm, an investor might "do her own leverage," or mimic the capital structure of a publicly traded company.

Read more about homemade leverage

brainly.com/question/15083730

#SPJ1

6 0
2 years ago
Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&amp;D typically utilize a
Triss [41]

Answer:

c.long-range time horizon.

Explanation:

Forecasts consider long-range time horizon to improve accuracy and provide more authenticity.

3 0
3 years ago
A company is evaluating an investment which has an initial investment of $4,000. Annual net cash flows is expected to be $2,000
uysha [10]

Answer:

The NPV of the project is $974.

Explanation:

The net present value is the today's value of a stream of cash flows. The net present value will be the sum of all the expected future cash flows from a project less the initial investment required for the project and it is used to evaluate the investment decisions.

The net present value of an investment project will be:

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial investment

or

If the cash flows are constant or of same amount through out, occur after the same interval of time and are for a defined period of time, they become an annuity and the NPV of such a project can be calculated by,

NPV = (Cash flow per period * Present value of Annuity factor) - Initial cost

The NPV of this project will be = (2000 * 2.4869) - 4000 = 973.8 rounded off to $974

4 0
3 years ago
Explain (with theories support) the elements that can affect an individual behavior
Fynjy0 [20]

Answer:

wow who has theory support THAT MENAS YOU HAVE wow but none of them has it

8 0
3 years ago
Read 2 more answers
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