1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Monica [59]
3 years ago
14

Your sister turned 35 today, and she is planning to save $7,000 per year for retirement, with the first deposit to be made one y

ear from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires

Business
2 answers:
iris [78.8K]3 years ago
8 0

Answer:

She can spend $64,932  each year after she retires

Explanation:

Future Value of deposits = 7000[(1+i)^{30} + (1+i)^{29} + ... + (1+i)^{1}] , where i = 7.5%

= $778,080

The value of her fund at retirement is $778,080.

Let the annual drawing be of amount Z.

The Present Value of drawings should equal the size of fund.

$778,080 = Z[(1+i)^{-0} +(1+i)^{-1} +...+ (1+i)^{-24}] , where i = 7.5%

$778,080 = Z*11.98

Z = $64,932

Mrac [35]3 years ago
5 0

Answer:

$64,932

Explanation:

Calculate the accumulated sum after 30 years by using below formula:

S = R[(1+i)^n - 1]/i  

Where

S = the accumulated sum

R = the yearly deposit

i = the decimal interest rate per year

n = the total count of deposits

This results in a sum accumulation of $723,796.

Now calculate annual payout for a 25-year old annuity by using below formula:

R = Pi/[1 - (1+i)^(-n)]  

This gives the PMT of $64,932.  

You might be interested in
Networking is a key benefit to a college education.which of the following is not an example of a networking benefit
Rufina [12.5K]

Answer:

D. Networking ensures higher-paying jobs.

Explanation:

Networking is the act of interacting and sharing information between a group of people with common interests in various settings, such as the work environment, schools, and other social gatherings. When students attend the same school, they share common interests and goals. Networking among them would pave way for possible help in the future with regards to finding a job. But it would be wrong to assume that networking would be a guarantee for higher-paying jobs.

Networking would also help graduates from college to interact with people who have progressed farther in their career than they have. So, they can learn from their wealth of experience.

4 0
3 years ago
An investment earns 35% the first year, earns 40% the second year, and loses 37% the third year. The total compound return over
svetoff [14.1K]

Answer:

19.07%

Explanation:

The computation of the total compound return over the 3 years is shown below:

= (1 + investment percentage earned in first year) × (1 +  investment percentage earned in second year)  × (1 +  investment percentage loss in second year)

= (1 + 0.35) × (1 + 0.40) × (1 - 0.37)

= 1.35 × 1.40 × 0.63

= 1.1907

= 19.07%

7 0
3 years ago
Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supp
chubhunter [2.5K]

Answer:

D. FreshDirect shares warehouse space with farmers and livestock producers

Explanation:

FreshDirect does not share its own resources with the supplier in order to get a lower rate. If it does that , he would be practicing a business model which has different entities attached to each other to work for greater goal.

Here, this is not the case. FreshDirect tends to look for out of the box ways to lower supplier cost but "FreshDirect shares warehouse space with farmers and livestock producers" is not one of those ways.

8 0
3 years ago
Which economic player did John Maynard Keynes feel was capable of restarting the economy during the Great Depression
Reptile [31]

Answer:

the government

Explanation:

5 0
2 years ago
A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is: Select one:
ivolga24 [154]

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.

<h3>What is a mortgage clause?</h3>

A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.

There are different types of clauses:

  • Acceleration clause
  • Due-On-Sale clause
  • Prepayment Penalty clause
  • Subordination clause
  • Release clause

If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.

Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.

To know more about mortgage clause refer to: brainly.com/question/13964240

#SPJ4

8 0
1 year ago
Other questions:
  • A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for
    9·1 answer
  • Metro Company trades its used machine for a new model at Denver Solutions Inc.
    11·1 answer
  • During the first quarter of the Super Bowl, Chris keeps track of actual game time vs. time devoted to commercials. Game time amo
    12·1 answer
  • Assume taxes increase by $300 and government spending increases by $300. The marginal propensity to consume is 0.75. Calculate t
    6·2 answers
  • Have Americans always shared the same social and economic goals throughout history?
    13·1 answer
  • The management at Burgerjoy, a small restaurant, finds that the lower the price of hamburgers, the more hamburgers are sold. Thi
    6·1 answer
  • At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to m
    12·1 answer
  • A. Macarty Company's records indicate the following information for the year: Merchandise inventory, 1/1 $ 550,000 Purchases 2,2
    12·1 answer
  • 3 things to consider when picking a bank
    14·2 answers
  • What is the coordinating mechanism in a market system?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!