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KATRIN_1 [288]
3 years ago
12

Harry has just inherited $300,000. Harry has decided to quit his job and go to school full time for the next five years by livin

g off this inheritance. Harry will invest the $300,000 in a money market account that has an 8% interest rate. If Harry's goal is to use up the entire inheritance, approximately what amount can he withdraw from the money market account each year for the next five years? Assume that his first withdrawal will be one year from the day that he sets up the account.
Business
1 answer:
never [62]3 years ago
3 0

Answer:

$ 75131

Explanation:

Given:

Amount inherited = $ 300000

Present amount of annuity = $ 300000

Interest rate, i = 8% = 0.08

number of years, n = 5

Now,

the formula for the present amount of annuity is given as:

Present amount of annuity = P[\frac{1-(1+i)^{-n}}{i}]

where,

P is the periodic payment

n is the number of years

now, on substituting the values, we get

$ 300000 = P[\frac{1-(1+0.08)^{-5}}{0.08}]

or

$ 300000 = P × 3.993

or

P = $ 75131.48 ≈ $ 75131

hence, the amount he can withdraw is $ 75131

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The ________ is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in
Sveta_85 [38]

Answer:

Income inequality ratio

Explanation:

The income inequality ratio is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in income.

Income inequality refers to the uneven distribution of income among the population of a particular place. It is the difference in the allocation of income in a particular country.

Income inequality occurs across different segments of the population such as gender(male and female), ethnic group, occupation, geographical location etc.

The Gini index is widely used to compare disparities in income.

6 0
3 years ago
The potential gross income of a warehouse is $4,200 a month and the vacancy rate is 2 1/2%. The taxes are $3750, the monthly mai
Marrrta [24]

Answer:

$238,320

Explanation:

First we should determine the total yearly revenue:

$4,200 (monthly income) x 12 = $50,400 - 2.5% (vacancy rate) = $49,140

Now we must determine the expenses:

monthly maintenance costs = $350 x 12 = $4,200 per year

taxes = $3,750 per year

monthly reserves for replacement = $250 x 12 = $3,000 per year

management fees = $500 x 12 = $6,000 per year

quarterly landscaping fees = $600 x 4 = $2,400 per year

Total revenues                                                       $49,140

maintenance costs                                                ($4,200)

taxes                                                                       ($3,750)  

reserves for replacement                                     ($3,000)

management fees                                                 ($6,000)

<u>landscaping fees                                                   ($2,400)   </u>

net profit per year                                                 $29,790

warehouse value = $29,790 / cap rate = $29,790 / 12.5% = $238,320

5 0
3 years ago
Last month, Laredo Company sold 650 units for $125 each. During the month, fixed costs were $8,850 and variable costs were $75 p
Y_Kistochka [10]

Answer:

1. $50 and 40%

2. 177 units and $22,125

3. 473 units and 72.77%

Explanation:

Price = $125

Variable cost = $75

Fixed cost =$8,850

Contribution margin is the net of sales price and variable cost of the product. It is the cost available to recover the fixed cost and make profit afterward.

1. Contribution margin = Sales price - Variable cost = $125 - $75 = $50

Contribution margin ratio = Contribution margin / Sale price = $50 / $125 = 40%

Break-even is the level of sales at which business has no profit no loss situation.

2. Break-even point = Fixed cost / Contribution margin per unit = $8,850 / $50 = 177 units

Break-even in $ = 177 units x $125 = $22,125

Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.

3. Margin of Safety = Total sales - Break-even point = 650 units - 177 units = 473 units

Margin of safety to sales = ( Margin of safety / Total sales ) = ( 473 units / 650 units ) x 100 = 72.77%

3 0
3 years ago
How does Apple advertise their Iphone 11 and become successful? It has to be a judgement on how successful they were.
crimeas [40]

Well, through commercials, but they were mainly successful because everyone (almost) knows and trusts Apple, so when the latest product is released, everyone flocks to it because it's new, cool, sleek, and awesome.

They also do partnerships with Verizon and Sprint or whatever.

3 0
3 years ago
Read 2 more answers
The Laffer curve shows the relationship between tax rates and ____________ and depicts the benefits of cutting taxes when tax ra
MrMuchimi

Answer: tax revenue

Explanation:

The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.

The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.

7 0
3 years ago
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