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Rasek [7]
3 years ago
6

You save for retirement over 30 years by investing $850/month in a stock account that yields 10%. You invest $350/month in a bon

d account that yields 6%. At retirement you combine both accounts into a new account that yields 5%. How much can you withdraw each month assuming a 25 year withdrawal period?
Mathematics
1 answer:
sergejj [24]3 years ago
6 0

Answer:

  $13,287.70

Step-by-step explanation:

The future value of the stock account is computed as the sum of a geometric series. This computation assumes that the annual yield is compounded monthly.

  FV = p((1+r/12)^(12n) -1)/(r/12)

For the stock account, p=850, r=0.10, n=30, so the future values is ...

  FV = 850((1+.10/12)^360-1)/(.10/12)) = 1,921,414.74

For the bond account, p=350, r=.06, n=30, so the future value is ...

  FV = 350((1+.06/12)^360 -1)/(.06/12) = 351,580.26

The combined account value at the end of 30 years is ...

  $1,921,414.74 + 351,580.26 = $2,272,995.00

_____

The monthly payment that can be made over a 25 year period is given by the amortization formula.

  A = P(r/12)/(1 -(1 +r/12)^(-12n))

  = $2,272,995.00(.05/12)/(1 -(1+.05/12)^-300) = $13,287.70

You can withdraw $13,287.70 each month assuming a 25-year withdrawal period.

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Bezzdna [24]

Given :

You order 1.5 pounds of turkey at the deli.

You will accept the turkey if its weight is between 1.54 and 1.46 pounds.

To Find :

What absolute value inequality can be used to describe the tolerance of the weight of the turkey.

Solution :

It is given that the weight cannot be less that 1.46 pounds.

So, mathematical equation is :

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Also, weight cannot be greater than 1.54 pounds.

x ≤ 1.54 ......2)

Combining equation 1 and 2 we get :

1.46 ≤ x ≤ 1.54

Hence, this is the required solution.

7 0
3 years ago
A square has side length of 10 units. find the approximate length of the diagonal.
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max2010maxim [7]
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3 years ago
Round 6.5472 to<br> the hundredths place.
Ugo [173]

Answer:

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Step-by-step explanation:

5 0
3 years ago
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Oduvanchick [21]

Answer:

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Step-by-step explanation:

6= m - 7/8

6 + 7/8 = m - 7/8 + 7/8

m =  6 7/8 or  55/8.

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