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jekas [21]
3 years ago
10

Athlete Kalen wishes to retire at age forty-five and receive annual birthday payments of $40,000 beginning on his forty-fifth bi

rthday. After his death, the payments on the anniversary of his birth should go to his heirs. In order for Kalen to be able to carry out his plan, he makes contributions to a savings account with a guaranteed annual effective interest rate of 4%. How much money will Kalen need to have accumulated at age forty-five, just prior to his first $40,000 birthday payment
Business
1 answer:
wolverine [178]3 years ago
0 0

Answer:

1,040,000

Explanation:

We can calculate the money will Kalen need to have accumulated at age forty-five by dividing the annual birthday payments by the effective interest.

DATA

Annual birthday payments = A = $40,000

Effective interest = i = 4%

Calculation

Value at age 45 = A / i + Co

Value at age 45 = (40000 / .04) + 40000

Value at age 45 = 1,040,000

Kalen will need to have accumulated money of 1,040,000 at age forty-five, just prior to his first $40,000 birthday payment.

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Which statement best describes the difference between a market and traditional economy
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Whether a firm has growth or value and how this firm characteristic affects an estimate of the cost of equity is called the ____
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3 years ago
The current sections of Whispering Winds Corp.’s balance sheets at December 31, 2019 and 2020, are presented here. Whispering Wi
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Explanation:

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Answer:

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3 years ago
Read 2 more answers
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