Answer:
$595,808.11
Step-by-step explanation:
We assume the retirement account is intended to pay out $5000 per month for 25 years. The amortization formula can be used to find the required amount. The monthly payment A based on principal P with interest at annual rate r for t years satisfies the relation ...
A = P(r/12)/(1 -(1 +r/12)^(-rt))
P = A(12/r)(1 -(1 +r/12)^(-rt))
P = 5000(12/0.09)(1 -(1 +.09/12)^-300)
P = $595,808.11
The required nest egg is $595,808.11.
Answer:
Step-by-step explanation:
present value of dividend for three years =
2.50 x 1.2 / 1.15 + 2.5 x 1.2² / 1.15² + 2.5 x 1.2³ / 1.15³
= 2.6087 + 2.722 + 2.84
= 8.17
present value of future cash flow after three years
= 2.5 x 1.2³ x 1.08 / .15 - .08
66.65
present value
= 66.65 / 1.15³ = 43.823
Total present value = 43.823 + 8.17
= 52 approx .
Answer: 0
Step-by-step explanation:
You can cross multiply fractions only if there is an "=" sign in the middle of the two fractions.
