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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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Answer:

TRUE

Explanation:

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3 years ago
In her presentation on improving employee morale, Jillian makes this statement: So far, you've heard only about the problems we
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Explanation:

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4 years ago
1. Although a promise to give value in the future is a valid consideration to support a contract, it does not constitute _______
Angelina_Jolie [31]

Answer:

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Explanation:

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3 years ago
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Finger [1]

Answer:

A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money

Explanation:

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Answer:

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Explanation:

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