Market inefficiencies created by government policies are known as

Jenna leigh is an information savvy, 20-something person who is trying to select between two marketing job offers. she can eithe

Veronika [31]

Hiii wanna be besties

3 0

3 years ago

You are planning to save for retirement over the next 25 years. To do this, you will invest $1,000 a month in a stock account an

STALIN [3.7K]

Answer:

Monthly withdraw= $12,452.6

Explanation:

First, we need to calculate the total accumulated at the moment of retirement. We will use the following formula:

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

A= monthly deposit

Stock:

Monthly investment= $1,000

Interest rate= 0.09/12= 0.0075

Number of periods= 25*12= 300 months

FV= {1,000*[(1.0075^300) - 1]} / 0.0075

FV= $1,121,121.94

Bond:

Monthly investment= $700

Interest rate= 0.06/12= 0.005

Number of periods= 25*12= 300 months

FV= {700*[(1.005^300) - 1]} / 0.005

FV= 485,095.77

Total FV= 1,121,121.94 + 485,095.77

Total FV= $1,606,217.71

Now, the annual withdrawal:

Interest rate= 0.07/12= 0.005833

Number of months= 12*20= 240

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,606,217.71*0.005833) / [1 - (1.005833^-240)]

Monthly withdraw= $12,452.6

3 0

3 years ago

If you could create one product that makes your daily life easier, what would that product be? How would that product work? Wher

Dima020 [189]

Answer:

Explanation:

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6 0

3 years ago

Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest pa

yanalaym [24]

Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%

Explanation:

A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

Where C – Interest payment = $90

FV – Face value of the security

= $1000

PV – Present value/curent market value = $960

t – years it takes the security to reach maturity= 10 years

imputing the values and calculating,

yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

= $90 + (1000-960)/10} / 1000 + 960 /2

$90 + 4= $94 /980= 0.0959

therefore Yield to maturity is 9.59%

B) After tax cost of debt = Yield To Maturity x (1 - tax rate)

=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =

9.59 % x 80%=7.672%

4 0

3 years ago

Hal and Gavin are siblings who own a mattress recycling company. Demand has been increasing for their services and the brothers

Yakvenalex [24]

I think it's A. They decide to open a mattress drop off site, downtown, because the marginal, cost of the new location is less than the other projects.

4 0

3 years ago