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Anarel [89]
3 years ago
14

You are planning to save for retirement over the next 15 years. To do this, you will invest $1,100 a month in a stock account an

d $500 a month in a bond account. The return on the stock account is expected to be 7percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a 5 percent return. How much can you withdraw each month during retirement assuming a 20-year withdrawal period?
(A) $2,636.19
(B) $2,904.11
(C) $3,008.21
(D) $3,037.36
(E) $3,406.97
Business
1 answer:
love history [14]3 years ago
6 0

Answer:

C  $ 3,113.036

Explanation:

First step will be calcualte the future value of the bond and stock funds:

C \times \frac{1+r)^{time} -1}{rate} = PV\\

C       1,100

time 180 ( 15 years x 12 months)

rate 0.005833333 (7% divided into 12 months)

1100 \times \frac{(1+0.00583333)^{180} -1 }{0.00583333} = PV\\

PV $348,658.5264

C \times \frac{(1+r)^{time} -1}{rate} = PV\\

C        500

time 180

rate 0.003333 (4% divided by 12 months)

500 \times \frac{(1+0.00333)^{180} -1}{0.00333} = PV\\

PV $123,045.2441

total fund: 348,658.5264 + 123,045.2441 = 471,703,7705

Then this will be placed to yield 5% and we will do motnly withdrawals:

we need to calcualte the PTM of this annuity:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $471,703.77

time 240

rate 0.004166667

471703.77 \div \frac{1-(1+0.00416667)^{-240}}{0.00416667} = C\\

C  $ 3,113.036

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Suppose C1 and C2 form a partition of sample space S. Suppose A and B are two events such that the following statements are true
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Explanation:

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6 0
3 years ago
Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how m
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Answer:

The Future value at year time is $4,260

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Computing Income Taxes
Anastaziya [24]

Answer:

The​ corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

<u><em>Net profit Calculation</em></u>

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cost of goods sold and the operating expenses          ($ 2,080,000)

Interest expense                                                              ( $ 377,000)

Net profit                                                                           $ 673,000

<u><em>Tax liability Calculation</em></u>

Income fall under Tax bracket of  34%  ($75,001 to ​$10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

​

5 0
3 years ago
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