Almost have level 60 :D

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Nikolay [14]

Answer:

Ans. Assuming that the withdrawal period is 300 months (25 years), you can withdraw every month $15,547.96

Explanation:

Hi, first, we have to take to future value (30 years in the future) the invested capital (both the stock account and the bond account). From there, we will consider the sum of both future values as the present value of the annuity that you are about to receive for the next 25 years (300 months). But before we do all that, we need to convert the return rates (compounded monthly) into effective monthly rates, for that we just go ahead and divide each one by 12, as follows

r(Stock) = 0.105/12= 0.00875

r(Bond)= 0.061/12 = 0.00508

r(Combined Account)= 0.069/12=0.00575

Now we are ready, first, let´s find the future value of the stock account.

$FV(stock)=\frac{750((1+0.00875)^{360}-1) }{0.00875} =1,887,300.74$ }

Now, let´s find out how much will it be in 30 years, investing $325 per month, at the end of the month, at 0.508% effective monthly.

$FV(Bond)=\frac{325((1+0.00508)^{360}-1) }{0.00508} =332,526.95$

And then we add them up and we get:

$FV(stock)+FV(bond)=1,887,300.74+332,526.95=2,219,827.69$

Ok, now let´s find the annuity (monthly withdraw) taking into account that we are going to make 300 withdraws at a rate of 0.575% effective monthly,

$[tex]2,219,827.69=A(142.7729593)$

$\frac{2,219,827.69}{142.7729593} =A$

$A=15,547.96$ \frac{A((1+0.00575)^{300}-1) }{0.00575(1+0.00575)^{300} }[/tex]

Best of luck.

5 0

3 years ago

A process costing system is employed in those situations where: Group of answer choices full or absorption cost approach is not

anygoal [31]

Answer:

where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

Explanation:

Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.

It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

7 0

3 years ago

Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay

zzz [600]

Answer:

b. If the employer accepts Turner's counteroffer, Turner will recognize as gross income $55,000 per month [($480,000 + $180,000)/12].

Explanation:

Given that

Turner annual salary = $600,000

Counteroffer to received a monthly salary = $40,000 or $480,000 annually

And, $180,000 bonus in 5 years at the age of 65

So the benefit he will be getting would be after accepting the counter offer is

= ($480,000 + $180,000) ÷ 12 months

= $660,000 ÷ 12 months

= $55,000

6 0

3 years ago

Lawrence Company has cash in bank of $22,000, restricted cash in a separate account of $4,000, and a bank overdraft in an accoun

andre [41]

Answer:

$22,000

Explanation:

It is worth noting that for accounting purposes, restricted cash is one that is not readily available. Such inaccessible funds, therefore, cannot be reported in financial statements. A bank overdraft, on the other hand, is a liability. Lawrence should therefore report cash worth $ 22,000 only.

3 0

3 years ago

Which of the following taxpayers may not use the standard mileage method of calculating transportation costs? a. A self-employed

frozen [14]

Answer:

The correct answer is (E)

Explanation:

A standard method of calculating transportation cost is used to maintain equality among organisations. This method is applied to all the workers and government employees, but it has some rules and regulations. If an employee for example attorney is using his vehicle for calling on clients is fine as long as the car average fuel consumption is standard. For example, if an attorney used his Tesla for calling on clients is not a standard way which is why transportation cost will not be calculated by the standard mileage method.

4 0

3 years ago