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
kirill [66]
3 years ago
9

You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate o

f annual inflation. If you can earn 10% annually, how much do you have to invest per year in order to have your full amount of money needed at retirement?(A) 21230.00(B) 85,651.00(C) 7856.00(D) 10,329.00
Business
1 answer:
vivado [14]3 years ago
4 0

Answer:

The correct answer is D: $10,329

Explanation:

Giving the following information:

You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. The interest rate is 10% annual.

First, we need to determine how much is $700,000 in 30 years.

FV= PV*(1+i)^n

FV= 700000*(1.03^30)= $1,699,083.73

Now, we can calculate the annual payment required using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,699,083.73* 0.10)/[(1.10^30)-1]= $10329

You might be interested in
Bee Sting bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What is the total t
daser333 [38]
Given:
400 shares of Google
399.75 per share
2% commission on purchase price.

400 shares * 399.75/share = 159,900
159,900 x 1.02 = 163, 098

The total to Bee Sting is $163,098
5 0
3 years ago
A 38-year-old investor places $25,000 into a single premium qualified deferred variable annuity. Twenty years later, with the ac
Bad White [126]

The total tax liability is $12,500.

<h3>What is the total tax liability? </h3>

Due to the fact that the account is qualified annuity, the total amount withdrawn is subject to tax.  Also, because the investor is less than 59.5 years, the investor pays an additional tax of 10%.

The effective total tax = 25% + 10% = 35%

Total tax liability = 25% x $50,000

= 0.25 x $25,000 = $12,500

To learn more about taxes, please check: brainly.com/question/25311567

6 0
2 years ago
Charity organisation has asked you to raise money for it by running a fete The organiser has given you a maximum amount to spend
Ahat [919]

Answer:

Charity fund should be handled with care as it is donor's money which should be handled with care. The amount of charity should be spent for the actual cause.

Explanation:

Charity fund is the money which should be handled with great care. The major fund of the charity should be attribute to the main cause and there should be proper record maintenance for every penny spent. The charity fund is the responsibility of the management and any donor can ask anytime about the money spent.

5 0
3 years ago
On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. Th
coldgirl [10]

Answer:

cash        16,000,000 debit

 note payable    16,000,000 credit

-- to record issuance of the note--

interest expense    240,000 debit

  interest payable          240,000 credit

--to record december 31th adjsuting entry--

note payable       16,000,000 debit

interest expense   1,200,000 debit

interest payable       240,000 debit

       Cash                         17,440,000 credit

-- to record honor of the note --

Explanation:

Timeline

<--//---------------//-------------------------//-->

 Issuance    adjusting entry        maturity

Issuance: the note enter the accounting at his face value along with the cash received.

adjusting entry at year-end

the company recognize the accued interest expense for 2 complete months (Nov 1st to Dec 31th)

16,000,000 x .12 x 2/12 = 240,000

at maturity Quantum Technology pays the principal and interest:

16,000,000 x .12 x 9/12 = 1,440,000

but a portion of this interest are accrued already an recognize as a payable so we write-them off.

5 0
3 years ago
Choose the strategy of following scenarios whether it describe business level or corporate level.
Serggg [28]
It’s a I promise I did the test!!
3 0
2 years ago
Other questions:
  • The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and
    5·1 answer
  • Solve the dilemma making infinity computers competitive what is a major weakness of the firm?
    7·1 answer
  • A__________ gap exists when a firm knows what it needs to do to meet customers' service expectations but sometimes fails to do i
    15·1 answer
  • Producers believe the economy is headed for a recession, so they reduce their purchases of machinery and equipment.
    12·1 answer
  • Which of the following should you keep in mind when targeting high-level networkers on sites such as LinkedIn?
    13·1 answer
  • Jack’s Snow Removal Company received a cash advance of $14,700 on December 1, Year 1 to provide services during the months of De
    13·1 answer
  • In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $23,300 and Job 11 $31,500. On March 31, Job 10 is sold to the c
    7·1 answer
  • A commodity is something with cash value that can be bought or sold.<br> true or false
    7·2 answers
  • An increase in the money supply causes
    9·1 answer
  • Shareholders in a management company have all of the following rights except the right to vote: a to change the investment objec
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!