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
Darina [25.2K]
3 years ago
6

Your Aunt Elsa has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each ye

ar, starting immediately. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative?
Business
1 answer:
Ksju [112]3 years ago
7 0

Answer:

22.85

Explanation:

Present value (PV): $500,000

Rate: 6.5% per annual

Payment (PMT) : $40,000 per year

We can use excel to calculate the maximum number of whole payments that can be withdrawn before the account is exhausted

=NPER(rate, PMT, -PV,,1) = NPER (6.5%,40000,-500000,,1) = 22.85

Download xlsx
You might be interested in
Labor unions want _____ wages for employees, but producers could earn more profits by offering _____ wages.
andrew-mc [135]
Labor unions want higher wages for employees, but producers can earn more profits by offering lower wages.
4 0
3 years ago
Read 2 more answers
A(n) _________ is a yearly published statement of the financial condition, progress and expectations of an organization.
Anika [276]

Answer: Annual Report

Explanation:

Completing the question with right answer:

An annual report is a yearly published statement of the financial condition, progress and expectations of an organization.

The financial report is normally targeted at the stakeholders and other individuals who have interest in the organization.

4 0
3 years ago
The expected average rate of return for a proposed investment of $500,000 in a fixed asset, with a useful life of four years, st
Natalka [10]

Answer: 48%

Explanation:

Based on the information given, the average rate of return will be:

= (Average return) / (Average Investment) x 100

where, average return will be:

= ($240000 × 4)/4

= $240000

Then, annual averay rate of return will be:

= $240000/$500000 × 100

= 48%

6 0
3 years ago
After learning about inflation and some of its history, what would be the inflation target that is most advisable for an economy
Talja [164]

Answer:

1-2%

Explanation:

In simple words, every nation in the world have some kind of central authority that works to control and keep the inflation as low as possible. However, too low inflation can also lead to recession which brings problems way worse than inflation.

Thus, keeping in mind about all the information we have studied, it is advisable to keep inflation at 1% or 2% band, so that economy can grow moderately along with no price pressure on consumers.

8 0
2 years ago
Planning goals is a large part of self-management.
Paladinen [302]

Answer:

True.

Explanation:

Planning can be defined as the process of developing individual or organizational aims, goals and objectives and translating them into action plans or courses of action.

Goals generally refers to the outcome statements that describe what an individual is hoping to achieve (accomplish), where he or she hopes to be in the nearest future, and the purpose for an action plan.

Planning goals is a large part of self-management because it sets the direction an individual should follow to achieve his or her objectives, mission or plans.

3 0
3 years ago
Other questions:
  • Wanda is the Chief Executive Officer of Pink corporation, a publicly traded, calendar year C corporation. For the current year,
    13·1 answer
  • Delta airlines prices its tickets so that it is less expensive to travel between midnight and 5:00
    9·1 answer
  • A chemist is studying the effect of acid rain on the steel in bridges. why would she most likely use rate laws in this study?
    5·1 answer
  • The following data has been provided for a compan most recent year of operations:
    11·1 answer
  • Suppose you operate a coal power plant and is considering upgrading the flue gas desulphurisation (FGD) facility (or "scrubbers"
    15·1 answer
  • The Foreign Corrupt Practices Act (FCPA) has been criticized for:
    7·1 answer
  • If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 bi
    15·1 answer
  • Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2019 when Park's book value was $560,000. The Royce stock was no
    10·1 answer
  • The Financials section of the Business Model Template consists of three boxes. The boxes are titled ________.
    6·1 answer
  • How is marginal analysis used
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!