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Virty [35]
3 years ago
15

You have just inherited $560,000. You plan to save this money and continue to live off the money that you are earning in your cu

rrent job. If you can invest the money in a bond that pays 5.46 percent interest annually, how long will it be before your inheritance is worth $1 million? (If you solve this problem with algebra round intermediate calculations to 5 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72.)
Business
1 answer:
suter [353]3 years ago
6 0

Answer:

10.64 years

Explanation:

To find the number of years , use this formula :

FV / PV = (1 + r) ^n

FV = Future value  = $1 million

P = Present value  = $560,000.

R = interest rate  = 5.6%

N = number of years  

$1,000,000 / $560,000 = (1.056)^n

1.785714  = (1.056)^n

Find the In of both sides

n = 10.64 years

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Your client has been given a trust fund valued at $1.07 million. He cannot access the money until he turns 65 years old, which i
slega [8]

Answer:

285 Months

Explanation:

n = 30 years  × 12 = 360

percent rate = 5.0 % divided by 12 = 0.417.

Now recalling the statement of time value for money,

We have future value = present value × ( 1 + rate) ∧ n

future value = 1, 070,000  × ( 1 + 0.417 )  ∧ 360

future value = 3.33065667 E 60

At age 65, the value 3.33065667 E 60 will be the  present monthly withdrawal at $28,500.

present value of ordinary annuity, = annuity ( 1 - (1 + r) ∧ -n ÷ r

= 3.33065667 E 60  = 28500 (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

= 3.33065667 E 60 ÷ 28500  = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

1.168651462 E 56 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

we now introduce logs to determine the value of n

Solving further, we discovered that n= 285.

Therefore, the number of months it will last one he start to withdraw the money is 285 month

6 0
3 years ago
Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If
damaskus [11]

Answer:

$412,500

Explanation:

March

Cash receipts from sales on account for April = $400,000 * 75%

Cash receipts = $300,000

April

Cash receipts from sales on account for April = $450,000 * 25%

Cash receipts = $112,500

Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April

Total Cash receipts = $300,000 + $112,500

Total Cash receipts = $412,500

5 0
3 years ago
Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established
Aleonysh [2.5K]

The most suitable mode of entry for Shiffon Electric into the European market will be through <u>acquisition</u>.

<h3>What is an acquisition?</h3>

This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.

Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.

Read more about acquisition

<em>brainly.com/question/24519774</em>

5 0
2 years ago
When the goods are sold, their costs are transferred from work in process to finished goods.
lara31 [8.8K]
The statement is false. When goods are sold, their cost are transferred from finished goods to sold items.
5 0
3 years ago
Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 140,000 shares of $8 par value common stock
natka813 [3]

Answer:

$728,000

Explanation:

Paid in capital can be described as the payments ac company received in exchange for its stock from investors.

From the question, the total paid in capital can be calculated as follows:

Receipt for 42,000 shares at $10 per share = 42,000 * 10 = $420,000

Receipt for 28,000 shares at $11 per share = 28,000 * 11 = $308,000

By adding the two above together and have:

Total paid-in capital = $420,000 + $308,000 = $728,000.

Therefore, total paid-in capital at the end of 2021 is $728,000.

3 0
3 years ago
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