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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

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Answer:

$305,000

Explanation:

Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;

Net income = Revenues - Expenses

Given that;

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Therefore the net income reported by Blue Spruce Corp. For the year is $305,000

3 0
3 years ago
If the demand for a good is estimated to be _____, then firms producing the good will experience an increase in total revenue if
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Answer: elastic

Explanation:

Elastic demand is a demand that occurs when the quantity demanded for a product or service results in a greater percentage change when there is a change in price.

For example, when there's a fall in price, this will lead to large change in quantity demanded for the good. Since there's an increase in the quantity demanded, it will lead to increase in revenue.

7 0
3 years ago
Suppose the working-age population of a fictional economy falls into the following categories: 60 have full-time employment; 20
iogann1982 [59]

Answer:

1) What is the size of Labor force

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60 people are full time employed + 20 people who are part-time employed + 20 people who are unemployed = 100 people

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3 years ago
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Answer:

$153,000

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Answer:

d

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Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

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