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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 What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative?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We can use excel to calculate the maximum number of whole payments that can be withdrawn before the account is exhausted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
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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
lina2011 [118]

Answer:

Nelson Company

a. Adjusting Journal Entries:

Debit Supplies Expense $2,700

Credit Supplies $2,700

To record supplies expense.

Debit Insurance Expense $1,650

Credit Prepaid Insurance $1,650

To record insurance expense.

Debit Depreciation Expense $1,625

Credit Accumulated Depreciation $1,625

To record depreciation expense.

b. Multi-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales returns and allowances                               2,000

Net Sales                                                             112,550

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700                 41,700

Gross profit                                                       $70,850

Depreciation expense- Store    1,625

Sales discounts                          1,850

Salaries expense                     13,600  

Rent expense                           6,000

Store supplies expense           2,700

Advertising expense                9,700

Total selling expenses                         $35,475

Administrative Expenses:

Salaries expense                    13,600

Insurance expense                   1,650

Rent expense                          6,000

Total administrative expenses           $21,250   $56,725

Net Income                                                            $14,125

c. Single-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200  

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Insurance expense                   1,650               $100,425

Net Income                                                           $14,125

d. Current Ratio = Current Assets/Current Liabilities

= $22,700/$16,000

= 1.42

Acid-test ratio = (Current assets - Inventory)/Current Liabilities

= ($22,700 -10,800)/$16,000

= 0.74

Gross margin ratio = Gross profit/Net Sales = $70,850/112,550 * 100

= 63%

Explanation:

a) Data and Calculations:

NELSON COMPANY Unadjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             14,500

Store supplies                             5,500

Prepaid insurance                       2,600

Store equipment                       42,800

Accumulated depreciation -Store equipment $17,850

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                 38,000

Depreciation expense- Store equipment 0

Salaries expense                    27,200

Insurance expense                   0

Rent expense                         12,000

Store supplies expense          2,700

Advertising expense               9,700

Totals                                 $166,400              $166,400

Adjustments:

Supplies Expense $2,700 Supplies $2,700

Insurance Expense $1,650 Prepaid Insurance $1,650

Depreciation Expense $1,625 Accumulated Depreciation $1,625

NELSON COMPANY

Adjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                          950

Store equipment                       42,800

Accumulated depreciation -Store equipment $19,475

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                           1,850

Sales returns and allowances   2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200

Insurance expense                    1,650

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Totals                                  $168,025              $168,025

Current Assets:

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                         950

Total current assets =             $22,700

Current Liabilities:

Accounts payable                   16,000

7 0
2 years ago
High levels of both job involvement and psychological empowerment are positively related to ________.A) withdrawal behaviorB) po
Annette [7]

Answer:

The correct answer is letter "C": organizational citizenship.

Explanation:

Organizational citizenship refers to the set of actions employees perform that are not part of their duties but help improve the working environment. These behaviors are usually referred to as the "plus" workers give to their performance even if their paychecks will not see an increase.  

<em>Employees who are committed to their roles and who were empowered by direct supervisors are more likely to show organizational citizenship behaviors.</em>

6 0
2 years ago
A carpenter sells _______ , whereas an automobile manufacturer sells _______.
Scorpion4ik [409]

Basic Answer

a carpenter sells furniture, whereas an automobile manufacturer sells cars.


Bussiness Answer

a carpenter sells style , whereas an automobile manufacturer sells mobility.

5 0
2 years ago
________________ represent a series of thick and thin vertical linesreadable by computerized optical scanners that represent num
amm1812

Answer: Bar codes

Explanation:

A barcode is a way of representing data in a machine-readable and visual form. In the past, barcodes illustrated data by placing the parallel lines at intervals and altering the widths. Nowadays, barcodes known as one-dimensional (1D) or linear are scanned by optical scanners. Also, the two-dimensional (2D) barcodes were manufactured using dots, rectangles, hexagons and some geometric patterns, known as matrix barcodes. Barcodes are used for the tracking of products.

3 0
3 years ago
If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmer's elastici
Ymorist [56]

Answer:

The correct answer is option C.

Explanation:

A perfectly competitive firm faces a perfectly elastic demand curve. In a perfectly competitive market, there is a large number of buyers and sellers, such that no single firm is able to affects the price or output level. The demand curve faced by a single firm is a horizontal line.  

The market demand curve, on the other hand, is downward sloping. So whatever be the market elasticity of demand, the elasticity of individual firm will be infinite.

5 0
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