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satela [25.4K]
2 years ago
6

John would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%. How much

does he need to invest each year to achieve his goal?
Business
1 answer:
leonid [27]2 years ago
3 0

Answer:

he need to invest $13,241 each year to achieve his goal

Explanation:

Target Saving Amount = Future value = F = $1,500,000

Number of years = n = 30 years

Inyterest rate = r = 8% = 0.08

Invetment to be made = P = ?

Use following formula to calculate Invetment amount

F = P x ([1 + r]^n - 1 )/r

P = F / ([1 + r]^n - 1 )/r

P = 1,500,000 / ([1 + 0.08]^30 - 1 )/0.08

P = 1,500,000 / 113.2832

P = 13241.15

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Explanation:

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Management of a close corporation often resembles that of a______, but a corporation must meet the statutory requirements to rem
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Answer:

Explanation:

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Splish Corporation has retained earnings of $707,000 at January 1, 2020. Net income during 2020 was $1,428,500, and cash dividen
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Explanation:

Statement of retained earning represent the changes in retained earning balance during the year and accumulated beginning balance of the period and Ending balance as well. It deals with all the adjustment in retained earning like net income transfer  fro the year, dividend paid during the year etc.

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