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
exis [7]
2 years ago
9

our aunt has $500,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year

, beginning immediately. When she makes her last withdrawal (at the beginning of a year), she also wants to have enough left in the account so that you can make a final withdrawal of $50,000 at the end of that year (her last withdrawal is at the beginning of the year, your withdrawal is at the end of that same year). What is the maximum number of $45,000 withdrawals that she can make and still have enough in the account so that you can make a $50,000 withdrawal at the end of the year of her last withdrawal? (Hint: If your solution for N is not an integer, round down to the nearest whole number.) a. 15 b. 17 c. 16 d. 13 e. 14
Business
1 answer:
dedylja [7]2 years ago
8 0

Answer:

B. 17 is the correct answer.

Explanation:

You might be interested in
What is the weighted average cost of capital (WACC) for ABC Limited which has the following capital structure? $5m of equity wit
katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.

By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

weight of equity=equity finance/total finance

cost of equity=15%

weight of mezzanine finance=mezzanine finance/total finance

cost of mezzanine finance=9.5%

weight of debt of finance=debt finance/total finance

total finance=$5m+$2m+$1m

total finance=$8m

WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)

WACC=12.63%

Find further guidance on weighted average cost of capital's computation in the link below:

brainly.com/question/25566972

#SPJ1

7 0
1 year ago
Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $30
Scrat [10]

Answer:

15.64%

Explanation:

Return on Assets = \frac{Net Income}{Average Total Assets}

= \frac{43,000}{(250,000 + 300,000)/2}  = \frac{43,000}{275,000}

= 0.1564

= 15.64%.

7 0
3 years ago
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment sp
enyata [817]

Answer:

left by 30 billons

then right by 40 billons

Explanation:

the aggregate demand curve will move to the left as the consumption of the economy will fall as the household are less wealthy than before.

Then, as the interest rate fall the aggregate demand curve will move to the right as the investing increase as now more projects are profitable.

<em>Calculations:</em>

<em />

5 billon for every point of wealth:

6 points x 5 billon = 30 billons

20 billion of inventing per 1% of interest rate decrease

2 points x 20 billions = 40 billons

7 0
3 years ago
Your company is evaluating two projects for consideration. Project A has a 40% probability of a $3,000.00 loss and a 60% probabi
natima [27]

Answer:

We should select Project A as it has a higher expected value of 10,800 compared to Project B's expected value of 9,000.

Explanation:

We need to find the expected value of both the projects, using the formula

Expected value of project A= (probability of loss * value of loss)+(probability of gain* value of gain)

Expected value of project A= (0.40*-3,000)+(0.60*20,000)

=-1200+12,000=10,800

Expected value of project A= 10,800

Expected Value of project B= (probability of loss * value of loss)+(probability of gain* value of gain)

=(0.30*-5,000) +(0.70*15,000)=-1500+10,500=9,000

5 0
3 years ago
1. Idea 1:
tiny-mole [99]

Answer:

Steps to Solving the Problems With Your Problem Solving

Step 1: Pin the Problem. Clearly define the issue at hand. ...

Step 2: Identify the Issues. Start breaking down the problem into subcomponents. ...

Step 3: Generate Hypotheses and Prioritize Proving Them. ...

Step 4: Conduct Your Analysis. ...

Step 5: Advance Your Answer

8 0
3 years ago
Other questions:
  • Les' Motors has sales of $482,800, cost of goods sold of $297,400, inventory of $169,600, and accounts receivable of $52,900. Ho
    5·2 answers
  • What percentage of data would you predict would be between 40 and 70 and what percentage would you predict would be more than 70
    9·2 answers
  • What is a formal arraignment to limit the production of a product
    7·1 answer
  • The stated purposed of NAFTA is to A. gain membership in the WTO. B. reduce the outsourcing of jobs to foreign countries. C. pha
    6·1 answer
  • The Conways received close to $40 million from the sale. However, shortly after the sale, the Conways regretted signing the non-
    12·1 answer
  • Which of the following must be included in Pete’s income? 1. Short-term capital gains of $10,000 from the sale of stock. 2. Long
    14·2 answers
  • A restaurateur spends $61 on labor and materials to produce 8 meals. by increasing these costs to $78, he can produce 14 meals.
    7·2 answers
  • What is the purpose of Usury Laws?
    11·1 answer
  • Cromwell manufactures specialty electronic circuitry through a unique photo-electronic process. One of the primary products, Mod
    6·1 answer
  • Which of the following is NOT part of a Kaizen event?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!