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
Serggg [28]
3 years ago
14

Jason Allen is 30 years and wants to retire when he is 65. So far he has saved (1) $6,960 in an IRA account in which his money i

s earning 8.3 percent annually and (2) $4,310 in a money market account in which he is earning 5.25 percent annually. Jason wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 9.34 percent annually. How much will Jason have to invest every year to achieve his savings goal?
Business
1 answer:
grandymaker [24]3 years ago
5 0

Answer:

It will make annual deposits for $ 4,056.202

Explanation:

His goal is a future value of 1,000,000 in 35 years.

we will deduct from this the future value of his other investment:

<u>IRA</u>

Principal \: (1+ r)^{time} = Amount

Principal 6,960.00

time      35.00

rate                0.08300

6960 \: (1+ 0.083)^{35} = Amount

Amount 113,397.95

<u>Market account</u>

Principal \: (1+ r)^{time} = Amount

Principal 4,310.00

time     35.00

rate               0.05250

4310 \: (1+ 0.0525)^{35} = Amount

Amount 25,837.53

<u>Proceeds required from the fund:</u>

1,000,000 - 113,397.95 - 25,837.53 =  860,764.52

Now we calculate the PMT:

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

PV  $860,764.52

time      34 years

(we must notice it will beging this investment next year, so at 31 years old)

rate                0.0934

860764.52 \div \frac{1-(1+0.0934)^{-34} }{0.0934} = C\\

C  $ 4,056.202

You might be interested in
Investors in closed-end funds who wish to liquidate their positions must a.sell their shares to other investors. b.sell their sh
Molodets [167]

Answer:

The correct answer is letter "A": sell their shares to other investors.

Explanation:

Closed-end funds are pools of assets that at the beginning raise a fixed amount of income thanks to an <em>Initial Public Offering</em> (IPO) and later on trades in a public stock exchange. Close-end funds are said to provide higher returns than open-end funds. <em>When investors have a position with a closed-end fund, to exit it the number of shares held must be sold to another investor.</em>

6 0
3 years ago
In 2019, Audrey claimed $2,100 on her Federal tax return for her Child and Dependent Care Expenses Credit. Her Federal adjusted
Maurinko [17]

Answer:

$1,050

Explanation:

Her adjusted gross income is $32,750, so she can claim maximum of 50% of Child and Dependent Care Expenses as CDC Credit

= $2,100 * 50%

= $1,050

So, the amount she can claim for the California Child and Dependent Care Expenses (CDC) Credit  is $1,050

5 0
3 years ago
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the
eduard

Answer:

the answer is  d

Explanation:

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run employment and production falls.

because workers and firms does not prepared for this change,for one hand workers  will  percieve minor wages and they prefer   not work  ,as a consequence the production falls because the firm does not have enough people t acomplish the production.

4 0
3 years ago
Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 1
Gennadij [26K]

Answer:

b. decrease by $1,000

Explanation:

There is an option below the question ask for details

For computing the profit or loss, first we have to determine the variable cost per unit which is shown below:

= Total variable cost ÷ Number of cases sold

= $144,000 ÷ 9,000 cases

= $16 per cases

The total variable cost would be

= $126,000 + $18,000

= $144,000

And, profit per case is $15

So, the loss per case would be

= $15 per case - $16 per case

= -$1 per case

So, the total loss would be

= 1,000 cases × $1

= $1,000 decrease

7 0
3 years ago
Jose owns an ice cream and frozen treat restaurant and is considering adding new menu items. He recently met with the representa
Monica [59]

Answer:

A. Modified rebuy

Explanation:

There are three types of buying situation:

1. Modified rebuy

2. Straight rebuy

3. New task

1. Modified rebuy: This is a buying situation in which an individual or organisation buys goods that have been purchased previously but changes either the supplier or some other element of the previous order. It is a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.

2. Straight rebuy: It is also known as Extensive problem solving situation. Customers are aware of his or her choices, what they are searching for, his/her needs which is based on personal experience of the customer or friends and families.

3.The new task: This is a business buying situation in which the buyer purchases a product or service for the first time. The buyer has no past experience about the products. It takes a longer time for the buyer to decide because of the risk involved.

8 0
3 years ago
Other questions:
  • Four finalists have been selected for a job as a travel agent. Which candidate will most likely get the job?
    7·1 answer
  • Question 1 Tamarisk Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares of $50 par value
    13·1 answer
  • What are high-risk loans?
    7·2 answers
  • In the joint planning process, ____________ saves times by allowing planning activities to begin in advance of a formal decision
    8·2 answers
  • Susan Inc. has been disappointed with the Willow Division's performance over the last few years and has decided that it would be
    8·1 answer
  • A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in
    6·1 answer
  • A. Avoid extra payroll expenses.
    13·1 answer
  • A portfolio consists of 265 shares of Stock C that sells for $50 and 230 shares of Stock D that sells for $25. What is the portf
    11·1 answer
  • Dennis has just made the final monthly payment necessary for paying off his car financing. When he purchased the car three years
    13·2 answers
  • Wallis company produces circuit boards in a foreign country that imposes a 15 percent vat. This year, wallis manufactured 8. 3 m
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!