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Darya [45]
3 years ago
11

Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the am

ount of $15,265 for 35 years from an account paying 4.5% compounded semiannually. Round your answer to the nearest cent. a. $938,272.00 b. $941,790.00 c. $535,528.03 d. $547,577.41 Please select the best answer from the choices provided A B C D
Business
1 answer:
lara [203]3 years ago
6 0

Answer:

$535,528.03

Explanation:

Since semiannual withdrawals are to be made for 35 years, that is an annuity with 2 payments per year.

You can use a financial calculator to find the amount that when you retire, will be equal to the present value of the annuity withdrawals. The inputs are as follows;

Total duration; N = 35*2 = 70 semi annual withdrawals

Semi-annual interest rate; I/Y = 4.5% /2 = 2.25%

Future value; FV = 0 (use 0 in annuity if not given)

Semi annual Payment;  PMT = 15,265

To find PV, key in the functions; CPT PV = 535,528.026

Therefore, the individual will need to have $535,528.03

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Answer: $283,140

Explanation:

Total Cost = Materials cost + Conversion cost

Conversion cost per unit = (Direct labor + Factory overhead ) / Equivalent units of production

= (142,300 + 57,200)/ ( 18,000 + (2,000 * 30%))

=  199,500/ 18,600

= $10.73 per unit

Direct material cost is $5 per unit from the question.

Total cost of the 18,000 units;

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= $283,140

4 0
3 years ago
When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is _________, so
o-na [289]

When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.

If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.

As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.

Learn more about interest rates here: brainly.com/question/1115815

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7 0
2 years ago
Clinicians and researchers seek to more efficiently and rapidly complete the cycle of bench to bedside to bench. these efforts a
DerKrebs [107]
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8 0
4 years ago
Steeplechase Building Specialties manufactures metal stud to accommodate commercial framing contractors in the United States. Th
forsale [732]

Answer:

Explanation:

The cost equation is shown below:

Y = Constant + Volume × Independent variable

where,

Y = operating costs

And, The other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $170 + 2,300 units × $260

= $170 + $598,000

= $598,170

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3 0
3 years ago
A marketing manager had a goal to improve market share for his paper plates by 2 percent in the coming year, and he felt he’d ne
rodikova [14]

Answer:

OBJECTIVE AND TASK BUDGETING.

Explanation:

Objective and task budgeting is an effective budgeting strategy which considers the firm’s overall promotional objectives. The budgeting is then done according to the requirements for meeting these goals.

By running television ads and a social media campaign, the marketing manager has created a means to meet his objective or goal which is to improve market share for his paper plates by 2 percent in the coming year. He then proceeds to price how much the advertising would cost him and then sets the budget. This budgeting is done by OBJECTIVE AND TASK BUDGETING. This allows the marketing manager to allocate a certain amount of money to its marketing budget based on his objectives, rather than choosing an arbitrary amount.

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