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
irakobra [83]
3 years ago
7

Your client has been given a trust fund valued at $1.07 million. He cannot access the money until he turns 65 years old, which i

s in 30 years. At that time, he can withdrawal $28,500 per month. If the trust fund is invested at a 5.0 percent rate, how many months will it last your client once he starts to withdraw the money?
Business
1 answer:
slega [8]3 years ago
6 0

Answer:

285 Months

Explanation:

n = 30 years  × 12 = 360

percent rate = 5.0 % divided by 12 = 0.417.

Now recalling the statement of time value for money,

We have future value = present value × ( 1 + rate) ∧ n

future value = 1, 070,000  × ( 1 + 0.417 )  ∧ 360

future value = 3.33065667 E 60

At age 65, the value 3.33065667 E 60 will be the  present monthly withdrawal at $28,500.

present value of ordinary annuity, = annuity ( 1 - (1 + r) ∧ -n ÷ r

= 3.33065667 E 60  = 28500 (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

= 3.33065667 E 60 ÷ 28500  = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

1.168651462 E 56 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

we now introduce logs to determine the value of n

Solving further, we discovered that n= 285.

Therefore, the number of months it will last one he start to withdraw the money is 285 month

You might be interested in
Cost, revenue, and profit are in dollars and x is the number of units. Suppose that the marginal revenue for a product is MR = 1
n200080 [17]

Answer:

Profit 6,130

Explanation:

MC = 30X + 4

when X=5

Cost to produce 5 units:

We will need to calcualte the MC for 1, 2 , 3, 4 and 5 units and then add them together

MC = 30(5) + 4 = 150 + 4 = 154

MC = 30(4) + 4 = 150 + 4 = 124

MC = 30(3) + 4 = 150 + 4 =  94

MC = 30(2) + 4 = 150 + 4 =  64

MC = 30(1) + 4 = 150 + 4 =   34

Total                                   470

Giving this, now anther way, more easy would be to use the Gauss method to a summatory:

S=\frac{n\times(n+1)}{2}

S to 5 from 1 of (30x+4) =

30 \times \frac{5\times6}{2} +4 \times 5

S = 470

Now we can continue:

Total Marginal cost 470 + Fixed Cost: 900 = 1370

MR = 1500 revenue for adding 1 unit

1500 x 5 = 7500 total revenue

total revenue - total cost = profit

7500 - 1370 = 6,130

3 0
2 years ago
How does the federal government's fiscal policy affect the U.S. economy?(1 point)
MrRissso [65]

Answer:

I think its d

Explanation:

Want my number I bored

4 0
2 years ago
The following totals for the month of June were taken from the payroll register of Xenos Company:
Elza [17]

Answer:

c. debit to Payroll Tax Expense for $1,050.

Explanation:

The payroll tax expense includes various expense like - Social security tax payable, medicare tax payable, unemployment tax payable, etc.

So, we consider these items only.  

The journal entry is shown below:

Payroll expense A/c Dr XXXXX

      To Social security taxes payable A/c XXXXX

      To Medicare taxes payable A/c XXXXX

(Being payroll expense is recorded)

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer?a. Net listingb. Ex
natita [175]

Answer:

b. Exclusive right to sell

Explanation:

-Net listing is when the agent is able to keep the difference when a property is sold for more than the asking price.

-Exclusive right to sell is when the seller gives the agent the right to market the property and accepts to pay the comission to the agent if the property is sold during the period of the listing.

-Open listing is when a property has different agents and the one that gets the buyer receives the comission.

-Exclusive agency is when the seller gives an agent the right to market a property but the seller is able to sell the property to a buyer that was not found by the agent and in that case, the seller doesn't have to pay the comission to the agent.

According to this, the answer is that the type of agreement that assures that a broker will receive compensation regardless of who procures the buyer is exclusive right to sell because the agent is granted the right to sell the property and the seller agrees to pay the comission if the property is sold during the time of the listing last and it doesn't matter who finds the buyer.

7 0
3 years ago
One of the key advantages of a franchise is: receiving management and marketing expertise from the franchisor. fewer restriction
Korvikt [17]
I think the most appropriate answer would be "receiving management and marketing expertise from the franchisor".


I hope it helped you!
7 0
3 years ago
Read 2 more answers
Other questions:
  • (LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among
    8·1 answer
  • The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 81,000 units of this
    9·1 answer
  • Exact Photo Service purchased a new color printer at the beginning of 2018 for $42,700. The printer is expected to have a four-y
    11·1 answer
  • Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has
    14·1 answer
  • "Suppose the government guarantees the price of carbon. At this price, the payoff after 1 year is $120,190 for sure. What is the
    6·1 answer
  • 1. A useful characteristic of money is that money
    10·1 answer
  • If GDP is expected to increase at a steady rate of 3% per year, how many years would it take for living standards to double
    12·1 answer
  • Suppose Nationwide increases the insurance premium they charge for their auto policies by 6 percent. In response, the demand for
    9·1 answer
  • Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 p
    6·1 answer
  • Identify the true statements about materials requirements planning. (Check all that apply.) Multiple select question. It is cons
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!