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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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cestrela7 [59]

Answer:

the answer is option B) the leaders of Jayhawk Foods should pursue a multidomestic strategy that includes new "local" brands.

Explanation:

Understanding how best to meet your customers needs is a sure way to maximize profits and generate more sales.

Having identified the need for a high degree of local responsiveness when it comes to food, Jayhawk Foods Inc., a snack manufacturer that wants to expand globally should pursue a multi domestic strategy for their branches globally.

Multi Domestic strategy is an international marketing strategy that is responsive to the local market by driving advertising and sales efforts towards the needs that the local consumers are most responsive to.

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3 years ago
Sealed Bidding is appropriate when discussion/negotiations are required to determine price and delivery terms?
denpristay [2]

Answer:

B. False

Explanation:

In a sealed bidding, bidders have no opportunity to discuss/negotiate. They just present an offer adjusted to the terms of the requirer of the good or service that is submitted to bidding.

4 0
3 years ago
Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at
Digiron [165]

Answer: 0.9

Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

where,

D1 is the dividend paid next year

P is the current stock price

g is the growth rate

r is the expected return

With the given figures we have,

84 = 4.20 / r - 0.08

84 ( r - 0.08) = 4.20

r - 0.08 = 4.20/84

r = 4.20/84 + 0.08

r = 0.13

The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

Where,

Er is expected return

Rf is the risk free rate

Rm is the market return

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Slotting in the figures gives,

0.13 = 0.04 + b( 0.14 - 0.04)

0.13 = 0.04 + b (0.1)

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b = 0.9

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8 0
3 years ago
The passage suggests that the high inflation in the United States and many European countries in the 1980's differed from inflat
vlabodo [156]

Answer:

E) It would not necessarily be considered high elsewhere.

Explanation:

The US inflation rate during 1979 was 11.26%, during 1980 it was 13.55%, and during 1981 it was 10.33%. These numbers may seem very high for American standards, but they aren't really high once you compare them to other nation's inflation rate.

For example, if we look at what is happening in two South American countries right now; Currently Venezuela is facing a hyperinflation measured by millions, and Argentina's current inflation rate is around 60%.

Back in the 1980s, hyperinflation rates were much more common. Argentina, Bolivia, Brazil, Mexico, Peru and Nicaragua, all suffered from hyperinflation (inflation rates in the 1,000s).

The US dollar is considered a very stable currency, that is why an inflation rate of around 10% was considered extremely high for American standards, but not so high compared to the rest of the world.

5 0
3 years ago
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