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algol13
3 years ago
8

Taylor has a retirement account that pays 4% per year compounded monthly. Every month for 20 years, Taylor deposits $444, with t

he first deposit at the end of month 1. The day the last deposit is made, the interest rate increases to 6% per year compounded monthly. During retirement, Taylor plans to make equal monthly withdrawals for 15 years, thus depleting the account. The first withdrawal occurs one month after the last deposit. How much can be withdrawn each month?
Business
1 answer:
cupoosta [38]3 years ago
6 0

Answer:

Taylor can withdrawn 1,374.20 dollars each month

Explanation:

Timeline:

deposits of 444 for 20 years =   withdrawals of X for 15 years

   <-----/-/-/-/-/-/-/-/-/-/-/-/-/-/-/-/-/---\\-\-\-\-\-\-\-\-\-\-\-\->

We must calcualte amount to satisfy:

future value of his deposits = present value of his withdrawals

   

We first need to get the future value of the retirement account

and then the PMT this fund can do.

<u>deposits future value:</u>

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C $ 444

time    240 (20 years x 12 months er year)

rate 0.003333333 ( 0.04 annual rate / 12 months = monthly rate)

444 \times \frac{(1+0.003333333)^{240} -1}{0.003333333} = FV\\

FV $162,847.9340

<u>withdrawals PMT:</u>

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $162,847.93

time 180

rate 0.005

162847.93 \div \frac{1-(1+0.005)^{-180} }{0.005} = C\\

C  $ 1,374.203

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Helga runs a website on which she sells houseplants. She also earns through pay-per-click advertising that allows search engines
Artyom0805 [142]

Answer: a. Gardening gloves

b. Terracotta planters

c. Garden scissors

d. Watering cans

Explanation:

From the question, we are informed that Helga runs a website on which she sells houseplants and that she also earns through pay-per-click advertising that allows search engines to show targeted ads on her site.

All the products will be advertised on her website. The gardening gloves, terracotta planters, garden scissors and the watering cans are all materials that are required for plant growth to provide water and keep weeds away.

4 0
3 years ago
What is Jared's accounting profit? Suppose Jared could have used his talents to run a similar kind of business instead. If he va
Deffense [45]

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em>After working as a head chef for years, Jared gave up his $60,000 salary to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Jared converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. The following table summarizes his operations for the past year. </em>

<em>Total sales revenue    $590,000       </em>

<em>  Employee wages $120,000   </em>

<em>  Materials                 $350,000   </em>

<em>  Interest on loan $5,000   </em>

<em>  Utilities                 $10,000   </em>

<em>  Rent                 $25,000   </em>

<em>Total explicit costs              $510,000 </em>

<em>a, What is Jared's accounting profit? </em>

<em>b, Suppose Jared could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs. </em>

<em>c, What was Jared's economic profit last year?</em>

My answer:

a. , What is Jared's accounting profit?

As we know that accounting profit is the difference between total sales revenue and Total explicit cost, from the table we can find that:

$590,000  - $510,000  = $80,000 is the accounting profit

b. Jared's total implicit costs.

Implicit costs include his foregone wages ($60,000), the value of his entrepreneurial skill ($10,000), foregone rent on the apartment ($3,600 = 12 x $300) plus the foregone interest on his savings ($2,000 = .04 x $50,000). These total $75,600.

c. What was Jared's economic profit last year?

Explicit plus implicit, was $585,600 = $510,000 + $75,600. His economic profit is the difference between revenue and economic cost, or $4,400 (= $590,000 – $585,600).

8 0
3 years ago
Milton Rokeach created the Rokeach Value Survey (RVS), which consists of two sets of values, namely ________ values and ________
saw5 [17]

Answer:

A) instrumental; terminal

Explanation:

Rokeach Value Survey (RVS) is an instrument that is used to classify values. 36 values are ranked to scale. The values are made up of 18 terminal and 18 instrumental values.

Participant in the survey rank 18 of the terminal values and then 18 of the instrumental values in order of importance to the individual.

RVS has been applied in the fields of psychology, personality, behaviour, social culture and cross-cultural studies.

Terminal values refer to desireable state of existence and instrumental values are preferable modes of behaviour.

6 0
3 years ago
Read 2 more answers
In a small country, the adult population equals 10,000. In that country, 10,000 people are in the labor force and 7000 people ar
Neporo4naja [7]

The unemployment rate is calculated by dividing the overall labor force's size by the number of jobless people, then multiplying the result by 100.

In light of the incomplete facts, the answer is: it is unknown.

<h3>How is the size of the labor force determined?</h3>

An estimation of the size of the labor force in an economy is the labor force participation rate. The calculation is the proportion of the working-age non-institutionalized population, aged 16 and older, who are employed or actively looking for work.

<h3>How are the numbers for those not working determined?</h3>

Divide the total civilian noninstitutional population by the number of people who are employed or actively seeking employment to find the formula for the labor force participation rate.

To know more about unemployment rate visit:-

brainly.com/question/17255561

#SPJ4

3 0
11 months ago
Voters in Lincoln School District approved the construction of a new high school and approved an $8 million bond issue with a st
Tom [10]

Answer:

d) Debit Cash $7.5 million and Expenditures $.5 million; Credit Other financing sources $8.

Explanation:

The Cash proceed from the bond is recorded as the net of face value of the bond and the underwriting fees.

The underwriting fees is the expenditure for the Lincoln School District ad it is debited to record the expense.,

As the bond issued is a liability for Lincoln School District and payable at the date of maturity. the interest is also paid on this amount on stated rate of 6%. The Bond Payable account is credited to record the liability.

6 0
3 years ago
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