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Yuri [45]
2 years ago
13

Jordan wants to retire in 35 years. She wants to have $75,000 per year in retirement and she expects retirement to last for 35 y

ears. if she can earn 8% before retirement and 5% after retirement, how much must she deposit at the end of each of the next 35 years?
Business
1 answer:
Radda [10]2 years ago
5 0

Answer:

$7,126.78

Explanation:

First, find the present value of the annuity payments at the year Jordan retires.

You can do this question using a financial calculator using the following inputs;

Total duration; N = 35

Recurring payment ; PMT = 75,000

Required return; I/Y = 5%

Future value ; FV = 0 (note: use 0 for FV in this annuity if not given)

then CPT PV(at t=35) = 1,228,064.572

Next, to find the recurring annual payment , $1,228,064.572 would the goal that needs to be achieved hence the Future value at year 35.

FV = 1,228,064.572

N= 35

Interest rate before retirement; I/Y = 8%

PV = 0

then CPT PMT = 7,126.78

Therefore, she must deposit $7,126.78 per year.

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Assume the demand curve is more elastic than the supply curve for the product: chewing tobacco. If the government wants to tax c
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Answer:

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

Explanation:

The options to this question wasn't provided. Here are the options:

The consumers will bear more of the tax than the producer because the supply curve is more inelastic than the demand curve.

The producers will bear the entirety of the tax because the supply curve is more inelastic than the demand curve.

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

The consumers will bear the entirety of the tax because producers set the price.

The producers will bear the entirety of the tax because the government imposed the tax directly on them.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

The more elastic demand or supply is the more sensitive quantity demanded or supplied to changes in price.

The burden of tax refers to who pays the tax.

If demand is more elastic that supply it means that demand is more price sensitive to changes in price that supply.

This means that if a tax is imposed which increases the price of the good, quantity demand would change more than quantity supplied.

Therefore, the burden of tax is borne by the party with the less elasticity.

I hope my answer helps you

4 0
2 years ago
Below is a partial portion of Jolex’s adjusted trial balance. Cash 12,692 Accounts Payable 5,443 Retained Earnings 1,593 Sales R
Nataliya [291]

Answer:

$ 5,937.00  

Explanation:

The credit to retained earnings in the year would be the net income for the year which is computed as sales and rent revenue added together minus salaries and wages expense,depreciation expense , utilities expense recorded in the year.

Net income=$13,108+$2,756-$6,639-$1,610-$1,678=$ 5,937.00  

All in all,the credit to retained earnings would be $ 5,937.00  

The net income is the amount by which the overall retained earnings would  increase in the current year

7 0
3 years ago
Calculate the expected cost per stockout with the following information: Probability of a back order is 50%, lost sale is 25%, a
S_A_V [24]

Answer:

D) $66,325

Explanation:

the total costs associated with a stockout are:

  • probability of a back order 50% x cost of a back order $150 = $75
  • probability of a lost consumer 25% x cost of a lost consumer $250,000 = $62,500
  • lost gross margin = probability of a lost consumer 25% x $1,500 x 50 units x 20% = $3,750

total costs of a stockout = $75 + $62,500 + $3,750 = $66,325

6 0
3 years ago
If your 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is an
Svetlanka [38]

Answer: Ordinary income tax on earnings exceeding basis.

Explanation:

From the question, we are informed that a 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized.

The consequences of this action is that Ordinary income tax on earnings exceeding basis. It should be note that the distributions from a nonqualified plan had to do with return on original investment and income from the investment. Since there's defer of the income, it'll be taxable as an ordinary income.

5 0
3 years ago
A cyclically adjusted budget balance: a. is an estimate of what the budget balance would be if real GDP were equal to potential
Kazeer [188]

Answer:

a. is an estimate of what the budget balance would be if real GDP were equal to potential output.

Explanation:

A cyclically adjusted budget balance <u>is an estimate of what the budget balance would be if real GDP were equal to potential output.</u> A cyclical adjustment budget balance measures the stance of fiscal policy, as it removes the endogenous components of spending and revenues and its also estimate the budget balance if the economy is in the long run equilibrium.

8 0
2 years ago
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