1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning
Ksivusya [100]

Answer:

7,000 units

Explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Current period +Ending inventory - Beginning inventory

Where,

Current period =7,000 units

Ending inventory=400 units

Beginning inventory =400 units

Let make plug in the formula above

Number of units =7,000 units + 400 units-400 units

Number of units =7,000 units

Therefore the Number of units will be 7,000 units

5 0
3 years ago
Physical capital differs from raw materials in the sense that raw materials A. have a longer useful life in production B. are co
Komok [63]

Answer:

D. are used up in production

Explanation:

Raw materials can be seen as the "ingredients" required to produce a good and, thus, are consumable (used up in production). Physical capital refers to lasting goods that are assist the production process like buildings or machinery and are not consumable.

4 0
3 years ago
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then
vaieri [72.5K]

Option C

If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is:  adaptive.

<u>Explanation:</u>

Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.  

If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.

7 0
3 years ago
"You are in the middle of a discussion with an institutional client over the phone, where you recommend that the client buy 100,
docker41 [41]

Answer:

The colleague has committed a violation because your customer's order could move the price of ABC stock

Explanation:

Front running is also called tailgating. It is a prohibited practice where a trader enters into a position security based on non-public information about a large trade that will influence the price of the security.

The trade is initiated to take advantage of the new price that the large trade will cause. The position is entered before the large trade occurs.

In this scenario your neighbour heard you telling your client to but 100,000 share of ABC. Because the transaction will influence the market he also tells his client to buy 10,000.

This is tailgating and it is a violation.

3 0
3 years ago
Gabriel put $6000 in a 2-year CD paying 4% interest, compounded monthly. After 2 years, he withdrew all his money. What was the
NeTakaya
First, we calculate for the effective annual interest given the interest in the scenario. 
                          ieff = (1 + i/m)^m - 1
Substituting the values,
                          ieff = (1 + 0.04/12)^12 - 1 = 0.0407
The effective interest is equal to 4.07%. 

The future amount after 2 years,
                         F = ($6000) x (1.0407)^2 = $6498.86
5 0
3 years ago
Read 2 more answers
Other questions:
  • Marketers are viewing information not only as an input for making better decisions but also as​ a(n) ______________.
    11·1 answer
  • Why do people feel more compelled to work with a leader who demonstrates responsibility
    15·1 answer
  • The focus of what a person or organization ought to do in when faced with a particular situation is referred to as: a. Substanti
    6·1 answer
  • Seema, a creative director at a marketing agency, notices that her team members often perform better while working as a team tha
    10·1 answer
  • Lucky Cow Dairy provided the following expense information for​ May:Assemblyminus−line ​workers' wages​$72,000Caps for milk bott
    15·1 answer
  • Bonita Company is trying to determine the equivalent units for conversion costs with 4500 units of ending work in process at 70%
    7·1 answer
  • uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 un
    8·1 answer
  • What is the first step of creating a federal budget A. Congress votes on requirements for a budget plan. B. Executive agencies s
    13·1 answer
  • Mag bigay programang pampamahalaan sa panahon ng komonweit​
    6·1 answer
  • Julia
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!