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Karolina [17]
3 years ago
14

You are planning to save $1,000,000 for retirement over the next 30 years. If you are earning interest at the rate of 6% and you

spend all the money in 20 years after retirement, what annual level of living expenses will those savings support?
Business
1 answer:
WARRIOR [948]3 years ago
6 0

Answer:

The retirement fund will provide 87,148.56 dollars per year during 20 years

Explanation:

The plan is to achieve 1,000,000 in 30 years.

Then we will spend them equally during a period of 20 years

We want to knwo how much will the retirement account provide.

So, we need to calculate the cuota of an annuity of 20 years with a presenet vale of 1,000,000 dollars at 6% discount rate:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $1,000,000.00

time 20 years

rate 6% = 6/100 = 0.06

1000000 \times \frac{1-(1+0.06)^{-20} }{0.06} = C\\

C  $ 87,184.56

The retirement fund will provide 87,148.56 dollars per year during 20 years

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The correct answer is the letter a. Standardized services are more efficient and cost less than personalized services.

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The personalized services are those provided according to the characteristics of each person, that is, we seek to individualize the service to meet customer needs. Standardized services refer to services provided equally to all customers, not seeking individualization. In this respect, standardized services are more efficient and cost less, as the individual cost of service does not change, leading to lower costs as the quantity of services sold increases.

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Market Testing Stage

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How do you determine retained earnings at year end
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Hope it helped u if yes mark me BRAINLIEST

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A) horizontal

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