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scoundrel [369]
3 years ago
11

How long would it take for Nico to save an adequate amount for retirement if he deposits​ $40,000 per year into an account begin

ning one year from today that pays 12 percent per year if he wishes to have a total of​ $1,000,000 at​ retirement?
Business
2 answers:
Maslowich3 years ago
7 0

Answer:

12.29 years

Explanation:

to determine the number of years (n) we can use the future value formula for an annuity:

future value of an annuity = payment x [(1 + r)ⁿ - 1] / r

  • r = 12%
  • payment = 40,000
  • future value = 1,000,000

1,000,000 = 40,000 x [(1 + 12%)ⁿ - 1] / 12% = 40,000 x (1.12ⁿ - 1) / 12%

(1.12ⁿ - 1) = 1,000,000 x 12% / 40,000

(1.12ⁿ - 1) = 3

1.12ⁿ = 3 + 1 = 4

nlog1.12 = log4

n = log4 / log1.12 = 0.602 / 0.049 = 12.29 years

dalvyx [7]3 years ago
6 0

Answer: It will take Nico approximately 12 years

Explanation:

Payments = $40000

r = 12%

Future Value = 1000 000

Future Value annuity = Payments((1 + r)^n - 1)/r

1000000 = 40000((1 + 0.12)^n - 1)/0.12

40000((1.12)^n - 1) = 1000000 x 0.12

(1.12)^n -1 = 120000/40000

(1.12)^n = 3 + 1

nlog(1.12) = log(4)

n = log(1.12)/log(4) = 12.232510748

n ≈ 12 years

It will take Nico approximately 12 years

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Answer:

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Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

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3 years ago
If workers are more educated, then short-run aggregate supply ___________.
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Answer:

O will increase and output and price level will increase as well.

Explanation:

If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.

5 0
3 years ago
A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency im
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Answer:

Small

Explanation:

Fixed costs are the costs that do not change when output level changes, while variable costs are costs that change as output quantity changes.

When a production process is capacity constrained, it implies that there is a factor that does not allow it to produce more output. Examples of such factors are minor bottlenecks, constrained designs and resources, and others.

A process is said to be efficient when it can avoid waste of resources in producing desired output.

Efficiency improvement therefore occurs when more output can be produced with less resources.

In the question, given that the process is currently capacity-constrained, efficiency improvement will result in producing more output at higher costs because of high variable costs despite that the process has low fixed costs.

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3 0
3 years ago
At December 31, 2012 and 2013, Plank Corp. had outstanding 3,000 shares of $100 par value 8% cumulative preferred stock and 15,0
zalisa [80]

Answer:

Preference shareholders = $36,000

Equity shareholders = $9,000

Explanation:

As provided the outstanding preference dividend at end of 2012 = $12,000

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Thus, when dividends will be paid in 2013 then firstly they will be used for payment to preference shareholders.

Thus, the company shall pay:

$12,000 + $24,000 = $36,000 to preference shareholders.

Further the balance will be paid to equity shareholders.

= $45,000 - $36,000 = $9,000

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Almost positive the answer would be <span>concept that people may decide what agreements they want to enter into</span>
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