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
Sloan [31]
3 years ago
11

a. You wish to have $1,500,000 by the age of 60 (30 years from now). If you can earn 8% interest on your investments, how much d

o you need to save per month, in order to achieve your goal?b. You decide you can afford house payments (principle and interest) of $900 per month. Given an annual rate of 5.5% for a 30 year loan, how much will you be able to borrow?c. You have $100,000 invested today. If you add $300 per month to your investments, after 35 years, assuming 8% annual interest, how much do you have total?d. You believe you could live on $6,000 per month today. What is the equivalent amount of money to the $6,000 (in terms of cost of living), 30 years from today, if it is adjusted for 2.5% annual inflation?
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

A) We need to save $1,005 per month in order to have 1,500,000 in 30 years.

B) We will be able to borrow 158,579

C) We will have 2,259,361 in 35 years

D) The equivalent amount of money is 12,585

Explanation:

A) We are given a future value that we need to have in 30 years. So our future value is 1,500,000. Our present value is 0, our interest rate is 8/12=0.667. We divide 8 by 12 because we need to save money per month. The number of compounding periods are (30*12)=360. We multiply by 12 because monthly payments. Now we will enter this information in a financial calculator to find future value.

Pv= 0

FV = 1,500,000

I=0.66

N=360

Compute PMT= 1,005

B) PMT= 900

   I=5.5/12=0.458

   N= 30*12=360

   FV=0

Compute PV

PV=158,579

C) PV= 100,000

    PMT= 300

     N= 35*12= 420

     I=8/12=0.66

Compute FV=2,259,361

D) We need to know how much money will we need 30 years from now if we want to buy goods and services which are worth 6,000 today considering an inflation rate of 2.5%

We will multiply 6000 by (1+Inflation)^number of years

6000*(1.025)^30

=12,585

You might be interested in
Sid has decided to leave his $70,000-a-year landscape design job and open a new kayak business. His insurance cost is expected t
madreJ [45]

Answer:

The correct answer is $15,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

Revenue = $100,000

Insurance cost = $2,000

Design job leave = $70,000

Rent = $10,000

Annual depreciation = 10% × $25,000 = $2,500

So, we can calculate the economic profit by using following formula:

Economic Profit = Total Revenue - (Explicit cost + Implicit costs)

By putting the value, we get

= $100,000-($70,000 + $2,000 + $10,000 + $2,500)

= $15,500

7 0
3 years ago
​Use the following to answer the questions. ​ Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in
Delvig [45]

Answer: Demand based pricing

Explanation:

Ray-Ban's plan of gathering information about the other brands sold in department stores, which includes their prices, would most likely be used in a demand based basis for pricing

Demand-based pricing, refers to the method of pricing whereby the fluctuations in the demand of consumers is considered.

Due to the flctuations, the prices are adjusted in a way that fits the changes in the values of the product.

4 0
3 years ago
The Federal Reserve _____ the money supply to lower inflation.
baherus [9]
~Hello there! ^_^

Your question: The Federal Reserve _____ the money supply to lower inflation.

Your answer: The Federal Reserve decreases the money supply to lower inflation.

Hope this helps~




6 0
2 years ago
Read 2 more answers
A country that abolishes laws that regulate private enterprises and removes price controls is in the process of
son4ous [18]

Answer:Deregulation

Explanation:

5 0
3 years ago
________ measures the percentage of profit earned on each sales dollar before interest and taxes but after all costs and expense
pentagon [3]
I think it is D. Gross profit margin because that is you profit before all of added taxes and every thing else.
7 0
3 years ago
Other questions:
  • Shelton Co. purchased a parcel of land six years ago for $877,500. At that time, the firm invested $149,000 in grading the site
    5·1 answer
  • New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle Eas
    15·1 answer
  • The daily grind operates a chain of coffee shops. the company pays rent of $20,000 per year for each shop. supplies (napkins, ba
    9·1 answer
  • What does "ARM" stand for? A. Adjustable-rate mortgage B. Advised mortgage rate C. Adjusted-rate mortgage D. Amortized real mort
    5·1 answer
  • Henry has a narrow scope in his job and does a few specific tasks as part of a larger production process. According to the job c
    9·1 answer
  • During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purcha
    5·1 answer
  • Here are simplified financial statements for Watervan Corporation. INCOME STATEMENT (Figures in $millions)Net sales $881Cost of
    8·1 answer
  • On June 1, 2019, Cain Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Pr
    14·1 answer
  • The government offers a subsidy of $5 per unit that increases the profit-maximizing quantity to 200 units. What will the total c
    8·1 answer
  • Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!