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maw [93]
2 years ago
6

Sarah Wiggum would like to make a single investment and have ​$2.4 million at the time of her retirement in 40 years. She has fo

und a mutual fund that will earn 5 percent annually. How much will Sarah have to invest​ today? If Sarah invests that amount and could earn a 15 percent annual​ return, how soon could she​ retire, assuming she is still going to retire when she has ​$2.4 ​million?
Business
1 answer:
Ulleksa [173]2 years ago
4 0

Answer:

The correct answer for present value is 340,909.64 and for time is 13.96 years.

Explanation:

According to the scenario, the given data are as follows:

Future value(A) = $2,400,000

Rate of interest (r) = 5% or 0.05

Time period = 40 years

So, we can calculate present value by using following formula:

P = A / (( 1 + r )^t)

=  2,400,000 / ((1 + 0.05)^40)

= 2,400,000 / 7.03998871212

= 340,909.64

Now, we calculate time at 15% rate then,

A = P(1 + r)^t

where, P = 340,909.64

r = 15% or .15

A = $2,400,000

So, by putting the value we get,

$2,400,000 = 340,909.64 ( 1 + 0.15)^t

t = log(2400000/340,909.64) / log(1.15)

t = 13.96 years

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Anarel [89]

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The next would be property. Since property is a physical asset, the risk involved is relatively lower than stocks.

The next would be retirement plans which would typically have bonds and stocks.

The most risky would be speculative stocks.

The order from least risky to most risky would be:

1. A rated bonds

2. Property

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4. Speculative stocks


3 0
3 years ago
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krok68 [10]

Answer:

First year depreciation expense is $2,250

Explanation:

Total depreciation expense is given by:

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That $36,000 depreciation expense would be spread out for 200,000 miles.

So for the first year in which the truck is used 12,500 miles, the depreciation expense will be

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Question answered.

Note:

\frac{Depreciable \,Cost}{Units \,in \,Useful \,Life}{=Per-Unit\,Depreciation}

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5 0
3 years ago
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pashok25 [27]

The characteristic that the manager needs to assess of the subordinate prior to delegating responsibilities is:

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<h3>What is Situational Leadership?</h3>

Situational leadership is seen when a manager delegates tasks based on the performance readiness of his staff.

The performance readiness in this case combines the ability of the person receiving the task and their willingness to execute the assigned task.

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2 years ago
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rjkz [21]

Answer: Option C

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The number of producers are large but each operate at a relatively smaller level. The products offered in the market are similar but not identical.

Hence, from the above explanation we can conclude that option C is correct.

3 0
3 years ago
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nirvana33 [79]

Answer: Business profile

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