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
Serggg [28]
3 years ago
7

Prof. Business will have $1,600,000 saved up by retirement at age 65. The retired professor expects to live 20 more years after

retiring. How large of an annual annuity withdrawal can Prof. Finance make at the beginning of each year under this scenario from an account paying 6.5% compounded annually?
Business
1 answer:
Paul [167]3 years ago
5 0

Answer:

$136348.618

Explanation:

Given:

Present value (PV) =$1,600,000

Number of year(n) = 20

Rate(r) = 6.5% = 6.5 / 100 = 0.065

Payment monthly (PMT) = ?

Calculation:

PMT = PV[\frac{r}{1-(1+r)^{-n}} ][\frac{1}{1+r} ]\\=1,600,000[\frac{0.065}{1-(1+0.065)^{-20}} ][\frac{1}{1+0.065} ]\\=1,600,000[\frac{0.065}{1-0.283797} ][0.93897 ]\\=1,600,000[\frac{0.065}{0.71620} ][0.93897 ]\\=1,600,000[0.0907567719 ][0.93897 ]\\=1,600,000[0.0852178861]\\=136,348.618

So, Payment per month = $136348.618

You might be interested in
Apple, Dell, Seagate, and other U.S. companies have been criticized for sending manufacturing jobs to other countries to cut dow
Alja [10]

Answer:

offshoring

Explanation:

buisness process from one to another

7 0
3 years ago
When did Toronto​ pearson​Airport​(Canada) start​ using​ technology​ or​ scanner​
mote1985 [20]

Answer:

  1. Canada's busiest airport will soon start to use artificial intelligence- powered technology to detect weapons.
  2. The technology can detect both metallic and non-metallic weapons ranging from  guns and knives to explosives, according to Liberty Defense Holdings Ltd., a  Vancouver-based company which first marketed the technology.  Known as Hex wave, the technology works by capturing radar images, then using  artificial intelligence to analyze them for concealed weapons in bags or under clothing.  
  3. Liberty's CEO, Bill Riker explained, "radar essentially is emitting this form of energy,  it's reflecting off a person and it's identifying any items on a person's body that don't  belong on a body."
  4. The technology will start getting deployed at Pearson in the Spring of 2020 in a bid to boost  security, according to the Greater Toronto Airports Authority, which runs Pearson.

7 0
3 years ago
What does the word Psychology means ?
nevsk [136]
Psychology is the study of behavior and the minds functions.
5 0
3 years ago
Read 2 more answers
On January 1, 2011, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30
horsena [70]

Answer:

Explanation:

Bonds are corporate debt units that are issued by firms inform of financial securities and  are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.

going by the question Upon issuance, Ozark should

Credit premium on bonds payable $100,000

Because face value of bonds =  $10 million but issue price is  $10 million * 101 % i.e $ 10100000

So, premium = 10100000 - 10000000 = $ 100000

5 0
3 years ago
Read 2 more answers
Burns Industries currently manufactures and sells 23,000 power saws per month, although it has the capacity to produce 38,000 un
Dmitrij [34]

Answer:

Increase by $37,100.

It will accept any time the price is above $43 with the condition it will not incur in additional fixed cost.

$63. is the sales price that generates 106,000 dollar of operating income

Explanation:

As the units will not inccur in any additional fixed cost we should check for the contribution margin this units will provide:

50 dollars - 43 dollar of variable cost = 7 dollars

5,300 saws x $7 = 37,100

The sales reveues will increase by that amount.

(5,300 x $43 dollars each in cost + 106,000 contribution )/5,300 = sales price

sales price = 63

6 0
3 years ago
Other questions:
  • Crane Company has a balance in its Accounts Payable control account of $9,250 on January 1, 2014. The subsidiary ledger contains
    8·1 answer
  • "Snoop Company sells collectibles. The following information summarizes Snoop Company's operating activities for the most recent
    7·1 answer
  • For what purpose are goods and services produced in a socialist economy
    5·1 answer
  • The demand for a luxury good whose purchase would exhaust a big portion of one's income is
    10·1 answer
  • Neil places an advertisement for his pastry shop, Neil's Pastries, in the local newspaper. He includes his phone number, website
    11·1 answer
  • The emergency food assistance program distributes ___________ for home and institutional use. funds to buy food meals grocery st
    8·1 answer
  • How should the organization keep track of the number of candy bars ordered and the number sold​
    11·1 answer
  • Duerr company makes a $75,000, 60-day, 11% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
    8·1 answer
  • Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner,
    9·1 answer
  • The government decides to place a tariff on platinum imports because it determines that mining practices abroad are not as stric
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!