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Ivanshal [37]
3 years ago
5

You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4500 per mont

h. You have access to an account that pays an APR of 7.2% compounded monthly. What size nest egg do you need to achieve the desired monthly yield?
What montly deposits are required to achieve the desired monthly yield at retirement?
Business
1 answer:
Triss [41]3 years ago
4 0

Answer:

623,459.79 and 224.51

Explanation:

first lets consider the first part of the problem and is how mucho do i need to accumulate for having an annuity for 25 years. this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the present value of future payments affected by an interest rate.by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

a_{25*12} =4,500*\frac{1-(1+0.006)^{-25*12} }{0.006}

look at the value 25*12 because the problem tells us is during 25 years but the payment is monthly, and look at the 0.006 and it is comming from the APR/12 and we must do that because this rate is componded Monthly:

a_{25*12} =623,459.79

so for the second part we must calculate the second part we must calculate the acumulated value at 40 years of work:

s_{n} =P*\frac{(1+i)^{n}-1 }{i}

where s_{n} is the future value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

623,459.79 =P*\frac{(1+0.006)^{40*12}-1 }{0.006}

solving for P we have:

P=224.51

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Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unempl
nikitadnepr [17]

Answer:

Not enough information

Explanation:

from this question, this mayor has only given us the estimated proportion of the rate of unemployment  for these months. In order to know if it is significant or not, we have to carry out other tests such as the hypothesis testing for the population proportion. But here we do not have any sample data or population data with which we can use to test this significance. The sample size is unknown so we cannot proceed to test if the claim is significant or not.

6 0
3 years ago
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

4 0
2 years ago
With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short p
Artist 52 [7]

Answer: (C) Just-in-time (JIT)

Explanation:

The just-in-time is one of the type of inventory system that reduced the overall amount of the inventory goods and the services that is owed by the manufacturer in the business.

It is also known as JIT inventory system and the main aim of this type of system is to increase the efficiency of the products and the services in an organization and reducing the wastage in the production process.

According to the question, the just-in-time inventory control system creating the production for the short time period and for the few hours also ans they reduce overall inventory cost in the system.  

 Therefore, Option (C) is correct.  

5 0
2 years ago
Name a profession which typically includes an apprenticeship as part of its training program
garri49 [273]
Carpentry has apprenticeship programs.
8 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
irga5000 [103]

Answer:

Adriana Corporation

Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

= $543,670

Explanation:

The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low

The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

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Download xlsx
5 0
3 years ago
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