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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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Economic integration is a process of eliminating restrictions on international trade, payments, and factor mobility. Economic in
valina [46]

Answer:

True

Explanation:

Economic integration refers to an agreement between countries to eliminate trade barriers and coordinate their monetary policies. The integration allows to reduce trade costs, more employment opportunities as there is mobility and market expansion. Usually, this is considered a regional trading arrangement as it tends to be between neighboring countries. An example of a economic integration is the European Union. According to  this, the statement is true.

4 0
3 years ago
Which part of the business plan is an analysis of your competition and the strategies you will use to earn and maintain a compet
gizmo_the_mogwai [7]

A competitive analysis.

A competitive analysis examines the strengths and weaknesses of your competition in relation you your business.

5 0
3 years ago
Use the information below to answer the following question. The following lots of a particular commodity were available for sale
Andreas93 [3]

Answer:

$1,510

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

The business had a total of 40 inventories.

The inventories sold = 40 - 20 = 20

The cost of the goods sold would first be alloted to the 3rd purchased inventory = 10 x $77 = $770

The remaining cost of goods sold would be allocated to the 2nd purchase of inventory = 10 x $74 = $740

Total = $740 + $770 = $1,510

I hope my answer helps you

8 0
3 years ago
When can interest be included in the acquisition cost of a plant asset?
hammer [34]

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

7 0
4 years ago
Porter’s competitive strategies of cost leadership and differentiation focus on ____ markets, while the cost-focus and focused-d
Artyom0805 [142]

Answer:

WIDE

NARROW

Porter’s competitive strategies of cost leadership and differentiation focus on WIDE markets, while the cost-focus and focused-differentiation strategies focus on NARROW markets.

Explanation:

Porter’s competitive strategies of cost leadership and differentiation focus on WIDE markets, while the cost-focus and focused-differentiation strategies focus on NARROW markets.

Differentiation refers to a firm's ability to create a good or service that is distinct from other product. This strategy leads to having or creating brand image, which allows the organization to sell its products or services at a premium

Cost leadership relates to a firm's ability to create economies of scale by producing a large volume of goods or service.

6 0
3 years ago
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