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S_A_V [24]
2 years ago
7

You believe you will need to have saved $590,000 by the time you retire in 30 years in order to live comfortably. If the interes

t rate is 6% per year, how much must you save each year to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
2 answers:
FromTheMoon [43]2 years ago
6 0

Answer:

$7462.86

Explanation:

Given

FV= $590000

r =6%

n = 30

C =? period payments

So the future value of annuity is appropriate to use

FV = C × {(1+r)^t-1/r}

Then substitute in formula and solve for Annual savings (C)

590000 = C × {(1+0.06)^30-1/0.06}

590000 = C × 79.0582

C = 590000/79.0582

C = $7462.86

evablogger [386]2 years ago
3 0

Answer:

The amount of money you must save each year to meet your retirement goal is $7,462.86

Explanation:

Acording to the data, we have the following:

Future value =$590,000 , N = 30 years and I = 6%

Therefore, to calculate the amount of money you must save each year to meet your retirement goal you have to use the formula of the future value.

Future value = yearly deposit * FVIFA (N,i)

$590,000 = deposit * FVIFA (30 , 6%)

Deposit = $590,000 / 79.0582 = $7,462.86 . Money to save each year.

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Drupady [299]
2940 would be 420 per week
4 0
3 years ago
g Product #1 Product #2 Historical cost $26 $51 Replacement cost 16 28 Estimated cost to dispose 23 25 Estimated selling price 5
Darya [45]

Answer:Product 1 will be valued at $16,  Product 2 will be valued at $29

Explanation:

Lower of Cost or Market

Lower of Cost or Market is a Method for Valuing inventory which stipulates  that inventory must be valued at the lower of cost or market price. Market price is defined as the replacement cost of inventory. There is however a Criteria to be followed when using Replacement costs

The replacement cost should not exceed or should not be greater than the Net Realizable Value, Net Realizable Value is the net amount we would receive from the sale of inventory after settling cost of selling inventory. If Replacement Cost is greater than Net relizable value, Net Realizable Value will be compared to historical cost in determining the value of inventory

The Replacement Cost Should also not be less than Net relizable value minus Ordinary profit, if it is less , Net relizable value minus Ordinary profit will be compare to historical costs in determining the value of inventory.

Replacement costs will be used if they are lower than Net realizable value and Higher than Net relizable value minus Ordinary profit

Product 1

Historical cost = $26

Net Realizable Value = $52 - 23 = $29

Net realizable Value minus Ordinary Profit = $29 - ( 52 -26) = $3

Replacement Cost $16

Replacement costs ($16) are less than Net realizable value ($29) But they are higher than Net realizable value minus Ordinary Profit ($3),. Product 1 will be valued at the lower of cost $26 or $16

Product 1 will be valued at $16

Product 2

Historical cost = $51

Net Realizable Value = $80 - 25 = $55

Net realizable Value minus Ordinary Profit = $29 - ( $80 -51) = $29

Replacement Cost $28

Replacement costs ($28) are less than Net realizable value ($55). They are also lower than Net realizable value minus Ordinary Profit ($29). Product 2 will be valued at the lower of cost $51 or $29

Product 2 will be valued at $29

5 0
3 years ago
Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-
JulijaS [17]

Answer:

$19,790

Explanation:

A taxpayer’s tax base for computing a self-employed taxpayer’s self-employment tax (i.e., net earnings from self-employment) is the taxpayer’s net business profit from Schedule C multiplied by 92.35%.

So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.

Alice will owe $15,773 ($127,200 maximum amount x 12.4%) in Social Security taxes and $4,017 ($138,525 x 2.9%) for the Medicare component of FICA taxes.

Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).

She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.

4 0
3 years ago
Read 2 more answers
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales
padilas [110]

Answer:

Net income = $169.2

Growth in dividend = 76.25%

Explanation:

The projected figures are as below:

Sales = $700 x (1 + 15%) = $805 <em>(15% increase in sales)</em>

Operating costs including depreciation = $805 x 60% = $483 <em>(60% of sales)</em>

Interest expense = 40 <em>(remain constant)</em>

EBIT = Sales - Operating costs including depreciation = $805 - $483 = $322

EBT = EBIT - Interest expense = $322 - $40 = $282

Net income = EBT x (1 - Tax rate) = $282 x (1 - 40$) = $169.2

Dividend = Net income x Dividend payout ratio = $169.2 x (32/96) = $56.4

Growth in dividend = $56.4/$32 = 76.25%

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4 0
3 years ago
Real GDP refers to _____. rev: 04_09_2018 Multiple Choice GDP data that embodies changes in the price level but not changes in p
pochemuha

Answer: GDP data that has been adjusted for changes in the price level

Explanation:

Real GDP refers to the Nominal GDP adjusted for inflation. Nominal GDP calculates the value of final goods and services in the Economy by using the price levels of that year so if inflation has occurred, comparing it to previous years would be inaccurate.  

The Real GDP would use the price levels of a base year to calculate the GDP of the current year so that the effect of inflation may be negated and the real growth of the economy can be seen.

5 0
2 years ago
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