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
If you needed financial advice, whom would you ask? Why?
kap26 [50]

Answer: financial advisors

Explanation: A financial advisor can help you create a long-term investing strategy, weigh the pros and cons of different account types, pick mutual funds, rebalance your investing portfolio, and set savings benchmarks to help you reach your long-term goals.

Hope this helped

6 0
3 years ago
The determinants of aggregate demand Multiple Choice explain shifts in the aggregate demand curve. explain why the aggregate dem
tamaranim1 [39]

Answer:

shifts in the demand curve

Explanation:

Aggregate demand is total value of goods and services demanded at a particular time in an economy. It indicate goods and services that will be bought at different prices.

The determinants of aggregate demand are factors that could cause shift in aggregate demand curve either to the left or right. A shift in aggregate demand curve to the right means an increase in quantity demand while a shift to the left means a decrease in quantity demand at every price level.

The determinants are ;

Price of the goods - An increase in price of the goods itself will bring about shift in the demand curve to the left and vice versa

Consumer expectations- When consumers expect price of goods to be high, demand curve would shift to the right and vice versa.

Price of related goods- An increase in price of related or complementary good would cause the demand to either shift to the left or right.

Income of the buyers - Increase in come of buyers would shift the demand curve to the right and vice versa.

Taste or preference of consumers- When consumer's preference shift in favour of a product, demand for such product would increase thus shifting the demand curve to the right.

3 0
3 years ago
In east icicle, minnesota, on the northern edge of the corn belt, the growing season is short and the soil is poor. corn yields
user100 [1]

The answer is marginal costs in both places are the same. This is because the farmers in both places are profit-maximizers, the value in each flat is equal to MC or Marginal Cost and subsequently the market of corn is competitive, the price of corn in both places is the same. Also, marginal costs are higher in East Icicle than in Corncrib can also be a possible answer. For any given outflow per acre Corncrib’s corn yield are far better than in East Icicle, at any level of output, the marginal cost per acre in East Icicle must be higher in Corncrib, which suggests that in equilibrium the output level of corn in East Icicle is less than the output level of corn in Corncrib.

8 0
3 years ago
Phương pháp công ty Samsung xác định giá, phân tích ưu/ nhược điểm:<br> help me
Molodets [167]
I’m not sure how to help you.
8 0
2 years ago
Which of the following criteria is important when identifying a potential
-BARSIC- [3]

Answer: A

Explanation:

7 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following statements is true regarding the cumulative translation adjustment? Select one: Changes in the cumulative
    9·1 answer
  • Chaia makes slate table tops for a living. She is guaranteed a base pay of $300 per week, and also earns $75 per completed table
    11·1 answer
  • Jim Jones, the landlord, rents a property to Tom Smith, a physically disabled person. Mr. Smith, with Mr. Jones' permission, mod
    11·1 answer
  • One of your employees mentions to you that there is an active grapevine in your organization. Which of the following assumptions
    15·1 answer
  • What does required fields mean someone please answer
    14·2 answers
  • In the event of death, this insurance covers the entrepreneur's business and helps family face the financial challenges.
    15·1 answer
  • Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a bus
    13·1 answer
  • Explain in more than 3 sentences why does the USA imports so much from China.
    6·1 answer
  • matthew has written his mission, vision, and value statements. he has completed his organizational assessment. what is his next
    11·1 answer
  • What would be the net effect of the government increasing the taxes by $10 billion at the same time that it decreased spending b
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!