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mart [117]
3 years ago
10

4. It is estimated that you pay $2,000 per year into the Social Security System (FICA) over your 40-year work span. For simplici

ty, assume that your annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. The deposit is done at the end of the year. However, the government decides to provide you the annual withdrawal only after the end of 67th birthday. If the government interest rate is 6% per year, what equal annual withdrawal you can do, if you expect to live till the end of 86th birthday
Business
1 answer:
nekit [7.7K]3 years ago
5 0

Answer:

$30,320.94

Explanation:

first we must determine the future value of your social security contributions:

when you are 65, your contributions will be worth = $2,000 x 154.762 (FV annuity factor, 6%, 40 periods) = $309,524

now we must determine the value of the contributions when you are 67:

FV = $309,524 x (1 + 6%)² = $347,781.17

you expect to live 20 more years, so we need to determine the annuity payment:

annuity payment = principal / PV annuity factor, 6%, 20 periods = $347,781.17 / 11.470 = $30,320.94

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A firm wishes to maintain an internal growth rate of 8 percent and a dividend payout ratio of 36 percent. The current profit mar
Anon25 [30]

Answer:

2.16 times

Explanation:

Given that,

Internal growth rate = 8 percent

Dividend payout ratio = 36 percent

Current profit margin = 5.8 percent

Therefore,

Internal Growth Rate = (1 - Dividend Payout Ratio) × ROA

8% = (1 - 36%) × ROA

0.08 = 0.64 × ROA

ROA = 0.08 ÷ 0.64

        = 0.125

ROA = Profit Margin × Total Asset Turnover

0.125 = 0.058 × Total Asset Turnover

Total Asset Turnover = 0.125 ÷ 0.058

                                   = 2.16 times

6 0
4 years ago
I Need helpppp asappp!
guapka [62]

Answer:

A

Explanation:

I don't know if I am correct but I am going to try. Debit cards, checks and credit cards come from your money. So that leaves EPTs. Sorry if I am wrong.

7 0
3 years ago
Read 2 more answers
Country risk included in the risk premium in interest rates refers to the:
NISA [10]

Answer:

The correct option here is B) the probability of loans not getting repaid in some countries because of political upheaval.

Explanation:

The risk premium is a return on investment that one expects it will yield, this is the return which is in excess of risk free rate of return.

In the risk premium for interest rate it includes both country risk and future exchange rate changes. Where country risk refers to a situation where there is a good chance that loans in some countries won't be repaid due to the political upheaval.

8 0
3 years ago
Which of the following sentences use apostrophes correctly? 1. We used to back up our account files weekly and save them onto CD
cupoosta [38]

Answer:

2. The financial planner’s e-mail address was listed on his website.

4. Making certain that all the timecards were submitted on time was Lorice’s responsibility.

Explanation:

The apostrophe (') is a punctuation mark used in English language to form possessive nouns, mark the omission of one or more letters and to indicate the plurals of letters in lowercases.

For example, forming a possessive noun; add an Apostrophe (') with the letter "s" i.e ('s) to nouns that don't end with "s" sound. Also, you can add only an Apostrophe (') without the letter "s" to nouns that ends with "s" sound.

For instance, the financial planner’s e-mail address was listed on his website, the writer's pen, the cat's eyeballs etc.

To indicate the omission of a letter (contraction), such as isn't, don't they're, I've, you're, doesn't, you've, they'd etc.

7 0
3 years ago
African Americans have a higher unemployment rate than whites. If someone were to make the argument that African Americans are m
sleet_krkn [62]

Answer:

Cultural Racism

Explanation:

Cultural racism can be regarded as

neo-racismand can be explained as the cultural differentiation which could exist among ethnic groups as well as racial group .it is also regarded as postmodern racism.

6 0
3 years ago
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