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zhenek [66]
3 years ago
15

You are saving for retirement. To live​ comfortably, you decide you will need to save $ 2 million by the time you are 65. Today

is your 29 th ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65 th ​birthday, that you will put the same amount into a savings account. If the interest rate is 7 %​, how much must you set aside each year to make sure that you will have $ 2 million in the account on your 65 th ​birthday?
Business
1 answer:
djyliett [7]3 years ago
5 0

Answer:

Annual deposit= $12,473.70

Explanation:

Giving the following information:

Final value= $2,000,000

Number of years= 37

Interest rate= 7%

To calculate the annual deposit required to reach the final value. We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= {2,000,000*0.07)/ [(1.07^37) - 1]

A= $12,473.70

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What are the portfolio weights for a portfolio that has 130 shares of Stock A that sell for $40 per share and 110 shares of Stoc
Eva8 [605]

Answer:portfolio Weight of A =0.6118; portfolio Weight of B=0.3882

Explanation:

stock A  Investment = Number of shares x market value

=130 x 40 = $5200

stock B investment =Number of shares x market value

110 x 30 =    $3,300

Total Investments= $5200 +  $3,300  = $8,500

portfolio Weight = stock  Investment / Total investment

portfolio Weight of A= 5200/ 8,500 =0.6118

portfolio Weight of B = 3,300 / 8,500 =0.3882

3 0
3 years ago
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Yuliya22 [10]
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Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.

Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments

Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.

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3 0
3 years ago
Contingent Liabilities must have the following criteria (select all that apply): Select one or more: A. The obligation is certai
Leya [2.2K]

Answer: Option B and C

                                     

Explanation: In simple words , contingent liabilities refers to the liabilities the occurrence of which depends on the happening of an event that may or may not occur in the future.

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Hence the correct option is B and C

3 0
3 years ago
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The answer is selling Treasury bills, which decreases bank reserves. The government securities that are used in open market processes are Treasury bills, notes or bonds. If the FOMC needs to grow the money supply in the economy it will acquire securities. On the other hand, if the FOMC wants to decrease the money supply, it will vend its securities.

5 0
3 years ago
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Bond [772]
I believe that the answer to the question provided above is that by agreeing on single issue of inflation is due to the need to have one . For the sense of having singularity for the group.
Hope my answer would be a great help for you.    If you have more questions feel free to ask here at Brainly.
5 0
3 years ago
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