Answer:
The correct answer is $7,056.46
Explanation:
Giving the following information:
You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?
Final value= 55,000*25= 1,375,000
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46
Answer:
(B) Leave his portfolio the way it is now
Explanation:
Bond value and market interest rates are inversely related. When the market interest rates are expected to decline and an investor already holds a bond with fixed rate of interest, the value of such bonds shall rise.
Market interest rates refer to the rate of interest other firms are offering on similarly priced bonds. Thus market interest rate also implies investor expectations i.e YTM (yield to maturity) which is used as a discounting factor to ascertain the price of a bond.
Lesser the discounting rate (yield to maturity), higher shall be the value of a bond.
Thus, it is recommended for Mr Smith to (B) leave his portfolio the way it is now.
Answer:
Investing all of your money into 1-2 funds so that you can focus on making money through compound interest.
Explanation:
Answer:
The correct answer is letter "A": Possible solutions to budget out repayment of the loan.
Explanation:
Trade lines are the sections of account holders' credit reports where the creditor, lender, type of credit line, individuals responsible for payment, and payment status of accounts appear. Most financial institutions use this information to find out what is the credit behavior people have.
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<em>Possible solutions for debt repayment are not included in a credit report.</em>
Answer:
d.funded status relative to the accumulated benefit obligation.
Explanation:
Employees should be informed funded status relative to the accumulated benefit.