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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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Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N O Unit sal
Xelga [282]

Answer:

Madison Corporation

The contribution margin per composite unit for the current sales mix is:

= $26.

Explanation:

a) Data and Calculations:

Products                    M            N            O

Current sales mix      3             1             2

Unit sales price      $16         $11          $13

Unit variable costs   10            9            10

Unit contribution    $6          $2           $3

Contribution margin per

composite unit    $18          $2           $6

=                      ($6 * 3)   ($2 * 1)    ($3 * 2)

b) The contribution margin per composite unit is computed as the addition of the contribution margin per composite unit for each product.  Each product's contribution margin per composite unit is calculated as the contribution per unit multiplied by the sales mix for each product.

5 0
2 years ago
A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the _____ distr
crimeas [40]

A symmetric, bell-shaped frequency distribution that is completely defined by its mean and standard deviation is the<u> normal distribution.</u>

A symmetrical distribution about the mean, such as the normal or Gaussian distribution, indicates that data points closer to the mean occur more frequently than data points further from the mean.

The normal distribution is represented graphically by a bell curve. A bell curve of probabilities is more properly known as the normal distribution. The standard deviation is one and the mean is zero in a normal distribution. Its kurtosis is 3, and its skewness is 0. Not all symmetrical distributions are normal, but all normal distributions are symmetrical. The normal distribution can be thought of as a rough approximation of many naturally occurring events. However, most price distributions in finance are not normally distributed.

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To know more about normal distribution refer to:

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6 0
1 year ago
Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign
Alika [10]

Answer:

The statement is true, as it is an example of foreign direct investment.

Explanation:

Foreign direct investment is the direct investment by individuals or legal persons in production or business operations abroad. In this context, investments include both acquisition of foreign operations and expansion of own operations.  

Foreign direct investment does not include the purchase of either shares or bonds per se. More specifically, the IMF has restricted direct investment on acquisitions to cases where the foreign investor owns 10% or more of the shares that give administrative rights in the business. Investment funds that can be classified as foreign direct investments therefore include equity deposits, reinvestments of dividends from the business, as well as the allocation of short-term and long-term loans between parent companies and subsidiaries.  

3 0
2 years ago
You recently sold 100 shares of Microsoft stock to your brother at a family reunion. At the reunion your brother gave you a chec
Hoochie [10]

Answer:

Option E                  

Explanation:

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In simple terms, cash loans exist when a company sells its shares in return for money specifically to the savers. There is no financial institution involved in this procedure. Small firms typically use direct transfers, so very less money is generated during this phase.

6 0
3 years ago
Check My Work Dressed to a Tee received a promissory note of $8,000 for 10 months at 6% simple interest from one of its customer
nikklg [1K]

Answer:

$8,120

Explanation:

<em>To calculate the proceeds, the gross proceed  less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>

Gross proceed= P + (P×R×T)

P- 8,000 R- 6%, T- 10/12

Gross proceed = (8,000 + 8,000× 6%× 10/12)

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Discount charges = Gross proceed × discount rate × time to maturity

Time to maturity = 10 - 5 = 5 months

Discount rate - 8%, Time- 5/12

Discount charges =  8400× 5/12× 8% = $280

Proceeds to be received = $8,400 - $280

                 = $8,120

5 0
3 years ago
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