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Greeley [361]
3 years ago
12

You are saving for retirement. To live​ comfortably, you decide you will need to save $ 2 million by the time you are 65. Today

is your 23 rd ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65 th ​birthday, that you will put the same amount into a savings account. If the interest rate is 5 %​, how much must you set aside each year to make sure that you will have $ 2 million in the account on your 65 th ​birthday?
Business
1 answer:
vichka [17]3 years ago
4 0

Answer:

Annual deposit= $14,789.43

Explanation:

Giving the following information:

You decide you will need to save $ 2 million by the time you are 65.

The interest rate is 5 %​. The number of years until 65 is 42.

We need to use the following Final Value formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (2000000*0.05)/[(1.05^42)-1]= $14,789.43

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the clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the not
pashok25 [27]

The clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the note has been fully paid is <u>defeasance</u>

<u></u>

<h3>What Is Defeasance?</h3>

When the borrower sets aside cash or bonds big enough to pay the obligation, the contract's defeasance clause renders the bond or loan worthless on the balance sheet. The outstanding debt and cash balance on the balance sheet are equal, thus they do not need to be reported because the borrower sets aside funds to pay down the bonds.

Buying commercial real estate is one instance of using defeasance. Due to commitments to bondholders having a stake in the commercial mortgage-backed securities (CMBS) that houses the loan, commercial loans may have hefty prepayment penalties in contrast to home mortgages.

To learn more about defeasance from given link

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5 0
2 years ago
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20
Andrew [12]

Answer:

b. $102

Explanation:

Data provided as per the question below:-

Cost of basket in 2014 = $51

Cost of the basket in base year = $50

The calculation of the value of the CPI is shown below:-

Value of the CPI = (Cost of a basket in 2014 ÷ Cost of a basket in the base year) × 100

($51 ÷ $50) × 100

= $102

Therefore for computing the value of CPI we simply applied the above formula.

7 0
3 years ago
Question 7
Katarina [22]
The correct answer would be A
7 0
3 years ago
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Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resourc
Thepotemich [5.8K]

Answer:

TRUE

Explanation:

Strategic planning is an essential tool for any company, regardless of its size or area of activity, through it the company identifies what its objectives and goals are for a period of time and develops action plans to achieve them. Through strategic planning, the company also seeks to identify its mission, vision, values, policies and procedures that will assist it in reaching its goals.

To be effective, it must be aligned with the organizational identity, be properly implemented and monitored.

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2 years ago
Question Content Area The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system wo
Tanya [424]

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

<h3>What are journal entries?</h3>
  • A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
  • An accounting journal, which shows a company's debit and credit balances, records transactions.
  • The journal entry can be made up of multiple records, each of which is either a debit or a credit.
  • Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.

Inventory purchase journal entry:

  • Say you purchase $1,000 worth of inventory on credit.
  • Debit your Inventory account $1,000 to increase it.
  • Then, credit your Accounts Payable account to show that you owe $1,000.
  • Because your Cash account is also an asset, the credit decreases the account.

Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)

Jan. 1    Inventory                    1,500

                     Cash                                              1,500

Know more about journal entries here:

brainly.com/question/14279491

#SPJ4

The question you are looking for is here:

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

(A) Jan. 1    cash                    1,500

                     Account receivables                    1,500

(B) Jan. 1    Purchases                    1,500

                     Account payable                          1,500


(C) Jan. 1    Inventory                    1,500

                     Office Supplies                             1,500

(D) Jan. 1    Inventory                    1,500

                     Cash                                              1,500

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