1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sattari [20]
3 years ago
9

Your parents will retire in 27 years. They currently have $360,000 saved, and they think they will need $2,400,000 at retirement

. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Business
1 answer:
Colt1911 [192]3 years ago
8 0

Answer:

<em>The (minimum) annual interest rate should be at 7.28%</em>

Explanation:

<u>Compound Interest</u>

An investment consisting of a principal P, (or present value) earns interest on each period considering the previous period's amount including the interest earned (no withdrawals). This situation is defined as an investment in compound interest unlike simple interest, where each interest amount is withdrawn and the new principal is P again.

To find the future value (FV) of an investment with an interest annual rate i during n years is

\displaystyle FV=P(1+i)^n

If needed, we can solve the equation for i. Dividing by P:

\displaystyle \frac{FV}{P}=(1+i)^n

Taking the nth-root:

\displaystyle \sqrt[n]{\frac{FV}{P}} =1+i

Finally:

\displaystyle i=\sqrt[n]{\frac{FV}{P}} -1

The parents will retire in n=27 years and they currently have P=$360,000 as an initial investment that they want to become into their retirement funds. Let's calculate the needed interest rate:

\displaystyle i=\sqrt[27]{\frac{2,400,000}{360,000}} -1

\displaystyle i=1.0728-1=0.0728

i=7.28\%

The (minimum) annual interest rate should be at 7.28%

You might be interested in
Education is the basic requirement for profession.Explain this statement​
True [87]

Answer:

The answer is below

Explanation:

Education is considered the basic requirement for the profession because, through education, people get to learn the basic knowledge required to perform a profession.

For example, a medical doctor or physician profession requires education in core biological science subjects such as microbiology, human anatomy, medical rehabilitation, dentistry, etc.

Education gives the professional the knowledge to anticipate, predict, and carry out the right solution to any problem that needs to be solved under his or her profession.

For example, a civil engineer needs education in architectural and engineering drawing to translates the drawing into reality or an actual project.

5 0
3 years ago
I need help kwnxinevdbbzjsbdyxyhskejd dbx
pychu [463]

Answer: AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

5 0
3 years ago
Read 2 more answers
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes tha
Lelechka [254]

Answer:

$0.013

0.010724

Explanation:

Given that :

Mean, m = 36500

Standard deviation, s = 5000

Refund of $1 per 100 mile short of 30,000 miles

A.) Expected cost of the promotion :

P(X < 30,000)

Using the Zscore relation :

Zscore = (x - m) / s

Zscore = (30000 - 36500) / 5000

= - 6500 / 5000

= - 1.3

100 miles = $1

1.3 / 100 = $0.013

b. What is the probability that Grear will refund more than $50 for a tire?

100 miles = $1

$50 = (100 * 50) = 5000 miles

Hence, more than $50 means x < (30000 - 5000) = x < 25000 miles

P(x < 25000) :

(25000 - 36500) / 5000

-11500 / 5000

= - 2.3

P(z < - 2.3) = 0.010724 (Z probability calculator)

3 0
3 years ago
Jane is conducting interviews in order to develop a customer profile for her client. She customizes each interview to each parti
adoni [48]

Answer:

Unstructured interview.

Explanation:

Unstructured interview are type of interview, where question are not preset or prearranged. Question asked in this type of interview are more informal and open ended, which allow interviewe to talk in depth and put his own point of view in his or her word. There is always purpose to conduct unstructured interview. People who conduct unstructured interview are well informed about the candidate and information, which he want out of respondent.

8 0
3 years ago
Which of the following statement is true?
Eduardwww [97]

c) <em>Project management Software is only useful with a knowledgeable operator.</em>

Explanation:

Project management software are assisting software that need a pre-educated person to understand how it works, thus is the operator already has knowledge in project management it will assist him/her in making decisions and tracking progress thus useful.

7 0
3 years ago
Other questions:
  • Which of the following is the best way to learn about a company culture?
    9·1 answer
  • When a job is completed in a service organization, the job costs are transferred to the?
    5·1 answer
  • What is a federal and state fox on specific goods like gasoline tires airfare and cigarettes
    9·1 answer
  • a firm in a perfectly competitive industry is producing 1000 units of output and earning revenues of 50000. At that level of out
    6·1 answer
  • The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the re
    7·1 answer
  • Your grandmother tells you a dollar doesn't go as far as it used to. She says the " purchasing power" of a dollar is much less t
    11·1 answer
  • You are the ceo of a telemarketing company. one of your employees posts political ads in his cubicle. the company has a policy p
    8·1 answer
  • On January 1, 2010, North Co. sold equipment and accepted in exchange a $600,000 zero-interest-bearing note due on January 1, 20
    6·1 answer
  • The Office of Federal Contract Compliance Programs is responsible for enforcing orders that cover companies doing business with
    14·1 answer
  • The marginal benefit of a taco is measured by:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!