1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ilia_Sergeevich [38]
3 years ago
11

So you can retire early, you have decided to start saving $500 a month starting one month from now. You plan to retire as soon a

s you can accumulate $1 million. If you can earn 5 percent on your savings, how many years will it be before you can retire?
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

It will take him 45 years

Explanation:

In this question, we are asked to calculate the number of years it would take to accumulate $1,000,000 if there is a plan to save $500 per month at an interest rate of 5%.

To solve this, we use the following mathematical formula:

Future value of annuity = Annuity payment * {(1+r)^n - 1}/r

Where r is the monthly interest rate and n is the number of months it will take.

From the question, we can identify the following;

Since he earns 5% interest on savings, the actual monthly interest rate will be 5%/12 = 0.4167% = 0.004167

Annuity payment = monthly payment = $500

Future value of annuity = $1,000,000

We substitute these values into the equation:

1,000,000 = 500 * [(1+0.004167)^n - 1]/0.004167

8.334 = (1.004167)^n - 1

1+8.334 = (1.004167)^n

9.334 = (1.004167)^n

To get n, we simply take the log on both sides of the equation

Log 9.334= nLog 1.004167

n = Log9.334/Log1.004167

n = 537 months

Question asks to calculate in years

there are 12 months in a year. The number of years it will take will be 537/12 = 44.76 years and that’s approximately 45 years

You might be interested in
The ________ documents the portion of work to be purchased, in enough detail so potential suppliers can decide if they feel they
anyanavicka [17]

The <u>procurement</u><u> statement of work</u> documents the portion of work to be purchased in enough detail, so as to help potential suppliers decide whether they're interested and capable of providing it.

<h3>What is procurement?</h3>

Procurement can be defined as a terminology that is used to connote the purchase of raw materials, items or resources from suppliers, which are used by business firms for the manufacturing of other finished goods and services.

Basically, the <u>procurement</u><u> statement of work</u> is typically used to document the portion of work to be purchased by an entrepreneur or business firm in enough detail, so as to help potential suppliers decide whether they're interested and capable of providing it.

Read more on procurement here: brainly.com/question/26101126

5 0
2 years ago
The federal funds rate A. equals the discount rate. B. only matters to banks and has very little impact on individual consumers.
bixtya [17]

Answer:

D. is the rate that banks charge each other for​ short-term loans of excess reserves.

Explanation:

The federal reserves require banks to maintain a certain amount in their vaults to cater for possible withdraws.  At the close of business every day, banks have to confirm they have the required amount. Should a bank fail to meet the requirement, it can borrow from other banks that have a surplus. The interest rate that banks charge each other for these transactions is the fed fund rate.

The Fed set the fund rate. It may increase or decrease it depending on the prevailing market condition. The banks use the fund rate set to determine the interest rates to be charged on loans and mortgages. A high fund rate means high-interest rates.

8 0
3 years ago
LO 8.5Which of the following is a possible cause of an unfavorable labor rate variance?
riadik2000 [5.3K]

Answer:

hiring higher-quality workers at a higher wage

Explanation:

Possible causes of unfavorable labor rate variances include:

An increase in pay for employees.

Working overtime hours paid at a premium above the basic rate.

Using direct labor employees who were more skilled and experienced than the ‘normal’ and who are paid  more than the standard rate per hour (adverse rate variance).

Based on the above discussion, the answer is hiring higher-quality workers at a higher wage

6 0
3 years ago
Here's 100 pts up for grabs!!!!
Triss [41]

all we have to do is answer and we get that many points that's cool

8 0
3 years ago
Read 2 more answers
Imagine that a major car company has been able to plan production to coincide with sales forecasts. As new inventory comes into
inessss [21]

Answer:

JIT production and JIT purchasing

Explanation:

JIT production and JIT purchasing under this process entity does not have extra material in stores and extra inventory produced.

as per the just in time

there is no benefit of holding inventory at stores

producing extra units does not add value they are useless until they are sold.

According to just in time inventory should be purchased when order has been placed and production process should start in order to meet the customers orders.

there are some conditions for this process

there should be very system to meet the order  on time

there should be relaible production system units produced should not be poor quality goods

there should reliable suppliers to supply the material on time to meet the customers orders and avoid the stock out costs.

5 0
3 years ago
Other questions:
  • 6. A zero coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A 3-year maturity annual-pay coupon b
    8·1 answer
  • When a company lends cash to a customer who signs a promissory note: total assets decrease when the lending transaction occurs,
    11·1 answer
  • A beverage company puts game pieces under the caps of its drinks and claims that one in six game pieces wins a prize. the offici
    10·1 answer
  • What are the business debts called?
    5·2 answers
  • Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisio
    9·1 answer
  • In a short essay What are advantages and disadvantages of competition for buyers and sellers?
    8·1 answer
  • Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig
    14·1 answer
  • If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?
    9·1 answer
  • Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,800 shares of its own common stock
    7·1 answer
  • Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!