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Zepler [3.9K]
3 years ago
10

An investor has $25,000 that he can invest today. In addition to this amount, he can also invest $12,000 per year for 30 years (

beginning one year from now) at which time he will retire. He plans on living for 25 years after he retires. If interest rates are 8 percent, what size annual annuity payment can he obtain for his retirement years? (All annuity payments are at year-end. Round your answer to the nearest dollar.)ÿÿ
Business
1 answer:
TiliK225 [7]3 years ago
6 0

Answer:

Explanation:

First, find the Future Value (FV) of the annuity deposits and the one time payment. You can do that using a financial calculator with the following inputs;

N = 30

I/Y = 8%

PV = -25,000

PMT = 12,000

then compute the future value ; CPT FV = $1,610,964.96

Next, the $1,610,964.96 the amount the investor will have at the beginning of retirement in order to make annual withdrawals. Therefore, that would be the new PV you will use to find the annuity amount as follows;

N = 25

I/Y = 8%

PV = -1,610,964.96

FV = 0

then compute annual deposits; CPT PMT = $150,913

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Answer:

Earnings per share

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P/E ratio = <u>Market price per share</u>

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15   = <u>Market price per share</u>

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Market price per share = 15 x $1.50

                                      = $22.50

Explanation:

In this question, there is need to calculate earnings per share by dividing net income by number of common stocks outstanding. Thereafter, we will apply P/E ratio formula, where P/E ratio and earnings per share are known. We will make market price per share the subject of the formula.

7 0
3 years ago
Past behavior of demand is indicative of its future behavior, therefore past demand data can be used to construct demand forecas
Elden [556K]

This statement is the underlying principle of the __time series analysis___ method.

Time series analysis method is a statistical technique that is often employed to determine how a variable changes over a series of time.

Time series analysis has been used in sciences, economics, and mathematics to determine changes of a given data variable over time and in relation to other variables in the same time period.

The wide application of the time series analysis method in various fields is dictated by the need to construct forecasts and make predictions, that is, using past realities to guess future realities.

Thus, this statement that the underlying principle of time series analysis method is based on the fact that past behavior of demand is indicative of its future behavior is widely accepted.

Learn more about time series analysis here: brainly.com/question/19485270

5 0
3 years ago
Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common sto
nikklg [1K]

Answer:

The appropriate solution is "$130,000".

Explanation:

The given values are:

No. of common shares outstanding

= 50,000

Dividend per share

= $1.80

No. of preferred shares outstanding

= 8,000

Dividend per share

= $5

Now,

The total dividend on common shares will be:

=  No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share

On substituting the values, we get

=  50,000\times  1.80

=  90,000 ($)

The total dividend on preferred stock will be:

=  No. \  of \ preferred \ shares \ outstanding\times Divided \ per \ share

On substituting the values, we get

=  8,000\times 5

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Hence,

The total dividend paid by company will be:

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Thus the above is the correct answer.

4 0
3 years ago
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Answer:

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