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
Ber [7]
3 years ago
11

Your father has $500,000 invested at 8%, and he now wants to retire. He wants to withdraw $50,000 at the end of each year, begin

ning at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero
Business
1 answer:
Julli [10]3 years ago
5 0

Answer:

The number of years is about 21 years

Explanation:

A scheme that allows the withdraw fixed amount of money for a number of years is referred to as annuity

The number of years required to exhaust the fund can be determined using the present of annuity formula

PV = A × (1 - ((1+r)^(-n))/n)

where- PV- Present value, A- annual cash flow, n- number of years , r- interest rate

500,000= 50000 × (1- (1.08)^(-n)/0.08

500,000/50,000= (1- (1.08)^(-n)/0.08

10  =(1- (1.08)^(-n)/0.08

n = 21

The number of years is about 21 years

You might be interested in
Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustain
Sidana [21]
$400. He is only responsible for the deductible. His insurance covers up to $10000 in damage
5 0
3 years ago
Making a profit by lending money is ____________.<br> a. capital<br> c. usury<br> b. barter
borishaifa [10]
Making a profit by lending money is usury, and the person who is doing it is called a usurer. 
4 0
3 years ago
Read 2 more answers
In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance
Romashka [77]

Answer:

~ 1561.235

Explanation:

Given :

Z=1.645

d = 200\ \\variance =64

Standard deviation can be determined by the \sqrt{variance }

Standard deviation=SD

=\sqrt{64}\ =\ 8

LT = 6\

σ = 8

Now using the formula

R\ =\ d \ *\ LT\ +Z\ \sqrt{LT^{2}\ +SD^{2} \ +\ d\ \sigma\ ^{2}  } \\\\Putting\  the\  respective\  value\  we\  get \\R=200 * 6 + 1.645\sqrt{6 * 8^2 + 200 *1^2}

R=1561.235

~ 1561.235

6 0
3 years ago
Adair Valley issued $20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a
Arlecino [84]

Answer: Please see explanation column for answer.

Explanation:

a) Journal entry to record the budget

Account                                           Debit                     Credit

Estimated   Revenues         $2,500,000

Appropriation                                                        $2,000,000

Budget fund                                                           $500,000

Calculation    

Budget fund= Estimated Revenues-Appropriation   = $2,500,000- $2,000,000= $500,000

b) Journal entry to record the  the expenditure when the interest comes due for payment.

Account                                           Debit                     Credit

Expenditure Interest              $2,000,000

Matured Interest payable                                            $2,000,000

7 0
4 years ago
Macroeconomic forces contribute to an industry's ability to be profitable. Which of the following examples shows how a company m
Elis [28]

Answer:

A home mortgage company creates a sales promotion with incentives for potential home buyers to take advantage of a particularly favourable interest rate.

Explanation:

Companies usually give numerous promotions to their valuable customers to increase the overall sales revenue. In the above scenario, if a home mortgage company creates a sales promotion which attracts customers to buy their product and take advantage of the favourable interest rate is an example of companies focusing on macroeconomic factors. Macroeconomic forces are important for any company to improve profits.

6 0
3 years ago
Other questions:
  • Why haven't the changes to campaign finance laws passed in 2002 been effective in stopping the flow of soft money?
    13·2 answers
  • ​First-line managers are typically those who​ ________.
    10·1 answer
  • Which of the following is a good question to ask during an informational interview?
    15·1 answer
  • Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $302,000 and credit sa
    11·1 answer
  • A pension fund that begins with $500,000 earns 15% the first year and 10% the second year. At the beginning of the second year,
    15·1 answer
  • Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc, as she attempts to make sales to food
    7·1 answer
  • Spring is here, and Ginny and her uncle would like to go fishing for the weekend in New Hampshire. Ginny could either go to the
    5·1 answer
  • When consumers purchase computers, they also often purchase virus protection to take care of the computer. As the price of a com
    11·1 answer
  • If a consumer views a unit of consumption in period 1 as a perfect substitute for a unit of consumption in period 2 and if the r
    7·1 answer
  • Select all that apply Select the components of a market analysis. (Select all that apply) Multiple select question. The economic
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!