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Tomtit [17]
3 years ago
6

Asma plans to retire in exactly 20 years. After retirement her goal is to invest in a fund that will allow her to receive Rs. 20

,000 at the end of each year for the next 30 years after retirement. She will be able to earn 11% per year during the 30-year retirement period. How large a fund will Asma need when she retires in 20 years to provide for the 30-year, Rs, 20,000 retirement annuity?
Business
1 answer:
Cloud [144]3 years ago
4 0

Answer:

Asma will need Rs, 173,875.85.

Explanation:

Since Asma will be receiving payments at the end of each year, the relevant formula to use to calculate the amount she will need she retires is the formula for calculating the present value of an ordinary annuity as follows:

PV = P × [{1 - [1 ÷ (1 + r)]^n} ÷ r] …………………………………. (1)

Where;

PV = What the present value of the amount needed be in 20 years or the amount Asma will nee when she retires in 20 years = ?

P = yearly payment = Rs, 20,000

r = interest rate = 11%, or 0.11

n = number of years = 30

Substitute the values into equation (1) to have:

PV = Rs, 20,000 × [{1 - [1 ÷ (1 + 0.11)]^30} ÷ 0.11]

PV = Rs, 20,000 × 8.69379257346612

PV = Rs, 173,875.85

Therefore, Asma will need Rs, 173,875.85 when she retires in 20 years to provide for the 30-year, Rs, 20,000 retirement annuity.

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Answer:

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Explanation:

Outsourcing refers to a practice that companies engage in to take their operations abroad to lower production costs and avoid being subject to stiff regulations that might harm their profits. <em>Under this approach, firms value chain activities handled in their original country are taken to countries where the manufacturing and labor costs are much lower with and relatively similar qualified workforce and suppliers.</em>  

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3 years ago
You run a stop sign and hit another vehicle. Which type of insurance will pay for the repair of your vehicle
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This is further explained below.

<h3>What is collision insurance?</h3>

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3 0
2 years ago
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These are public personnel who have interaction immediately with residents and feature good sized discretion withinside the execution in their work (1980:3). Examples are teachers, police officers, widespread practitioners and social employees. These street-stage bureaucrats enforce public policies. Street-stage bureaucrats act as liaisons among authorities coverage-makers and residents and those civil servants enforce coverage selections made with the aid of using senior.Street-Level Bureaucrats in Perspective.

“Street-stage bureaucrats” are public provider employees “who have interaction immediately with residents withinside the direction in their jobs, and who've good sized discretion withinside the execution in their work. A few examples include police officers, border guards, social employees and public faculty teachers. These civil servants have direct touch with individuals of the overall public, in assessment with civil servants who do coverage evaluation or financial evaluation, who do now no longer meet the public.

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5 0
9 months ago
Pierre wants to use the loan manager to track the long-term liability for his new pickup truck. what accounts must he set up pri
dusya [7]

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A long-term liability account register lists transactions related to debts that are due in more than one year like a mortgage. . Long-term liabilities are also known as non-current liabilities You can use a long-term liability account register to track and manage transactions that affect your long-term liability account.

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5 0
1 year ago
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Answer:

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Factoring in the numbers the Equation now is:

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Total money earned = $686

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