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
babymother [125]
3 years ago
15

Your older brother turned 35 today, and he is planning to save $7,000 per year for retirement, with the first deposit to be made

one year from today. He will invest in a mutual fund that's expected to provide a return of 7.5% per year. He plans to retire 30 years from today, when he turns 65, and he expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can he spend each year after he retires?
Business
1 answer:
erik [133]3 years ago
6 0

Answer:

Elder Brother will be able to annual spend $64,932.21 each year for 25 years after retirement.

Explanation:

The question is to find the Future Value of saving $7,000 per year for retirement.

First step is to know the formula for the Future of Annuity in order to compute the future value of his yearly deposits.

<h2>Future Value (FV) = P * (1+r)^{n}- 1/r]</h2>

FV= Future value of the annuity

P= The annual payments/savings

r = rate for each period

n= number of years he is to save

FV = $7,000 * (1+0.075)^{30}- 1/0.075]

= $7,000 x (8.754955-1/0.075

=$7,000 x (7.754955/0.075)

= $723,795.82

The answer above shows the amount of cash flow, his current yearly savings will make available for him at the age of 65 and to be spent for the 25 years he expects to live after retirement.

Using the amount therefore, we can determine the amount he is able to spend each year as follows

PV (at the time of his retirement)= P x [1-(1+r)^{-n}/r]

Where PV= $723,795.82

P= Expected periodic spending per year after retirement

R = Rate for each period = 7.5%

n= number of years expected after retirement= 25 years

$723,795.82= P x [1-(1+0.075)^{-25}/0.075]

$723,795.82= P [(1-0.163979)/0.075]

$723,795.82= P x (0,836021 /0.075)

$723,795.82= P x 11.14695

P= $723,795.82=/11.14695

P= $64,931.21

This means Elder Brother will be able to annual spend $64,932.21 each year for 25 years after retirement.

You might be interested in
The chief executive of a large telecommunications company wanted to restructure the organization so product leaders would have m
katen-ka-za [31]

This kind of resistance from the product leaders is an example of resistance due to breaking routines. Furthermore, there are more types of resistance to change in an organization's culture & structure.

 

EXPLANATION:

Here is the list of types of resistance to change in an organization’s culture and structure:

• Fear of Failure

Intimidating cultural and structural alterations on the employee can make them doubt their competences. This self-doubt decreases self-confidence and weakens personal development and growth. The workers may resist such alterations without bearing in mind the potential profits of the proposed alterations, as a consequence. The low output might be understood before the workers finally learn and adjust to life with the alterations.

• Loss of Status

Cultural and structural alterations that intimidate to change dominant positions or remove jobs commonly cause strong resistance. Restructuring and reorganization of corporate may include managerial jobs elimination. Middle managers will oppose restructuring and any other agenda that decreases their power and the status they already possess in the organization.

• Non-Reinforcing Reward System

People resist when they do not predict positive prizes for altering their work routines. Workers presume a positive development in their work to voluntarily accept the alteration. A worker is unlikely to help an alteration that is recognized as longer work hours and enlarged pressure to perform.

• Incongruent Group Dynamics

Groups grow and apply conformity to a series of norms that lead the members' behavior. However, conformity to prevailing group norms may deject workers from receiving organizational change. Group norms that disagree with the desired changes need alteration, while the cultural and structural norms that succeed to enhance the organization need promotion.

• Breaking Routines

Individuals are creatures of habit and see it difficult to abort behavioral customs that the organization think through no longer suitable. They prefer comfort zones by remaining routine role patterns. Hence, people oppose cultural and structural changes that push them out of their comfort zones and need devoting more energy and time acquiring new role patterns.

 

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• When involving entry employers, joint entries must be? brainly.com/question/4933698

• A company provides wages to its employees based on the amount workers produce. the more employees produce, the more they earn. this type of plan is called? brainly.com/question/6382273

KEYWORDS : Resistance to change, organization’s culture and structure

Subject  : Business

Class  : 10-12

Sub-Chapter : Organizational Behavior

8 0
3 years ago
McDonald's culture, with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these c
Luba_88 [7]

Option C

Costly to imitate criteria for sustainable competitive advantage

<h3><u>Explanation:</u></h3>

Sustainable competitive advantages are business assets, properties, or skills that are hard to replicate or exceed; and render a higher or complimentary long term situation over competitors.  A company must produce distinct goals, plans, and methods to create a sustainable competitive advantage.

 It needs huge expenditure in time and money to create a brand. It demands very limitedly to destroy it. A good brand is precious because it prompts customers to favor the brand over competitors. A unique product or service increases customer support and is less suitable for a competitor to imitate.

5 0
3 years ago
Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she de
leva [86]

Answer:

$14,500

Explanation:

The size of Ginny's taxable capital gain = $64,500 - $50,000 = $14,500

Note: Capital gains tax is a tax on the profit realized on the sale of a non-inventory asset.

8 0
3 years ago
The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day.
frez [133]

Answer:

A) an increase in the price of other kinds of candy

Explanation:

If the price of substitute products (other types of candy) increases, then the suppliers of chewing gum can increase their price without the quantity demanded decreasing. If the decrease in the price of chewing gum is smaller than the increase in the price of substitute products, the quantity demanded will increase.

If there was a price increase of the main ingredients used to produce chewing gum, then the supply curve would shift to the left (option B is wrong).

If the workers signed an agreement that lowered their wages, then the supply curve would shift to the right (option C is wrong).

A decrease in the number of young people in the market would decrease the quantity demanded for chewing gum, which in turn would decrease the equilibrium price (option D is wrong).

A decrease in income would also decrease the quantity demanded, which would in turn decrease the equilibrium price (option E is wrong).

5 0
3 years ago
In general, business writing should be _____.
Dmitrij [34]

In general, business writing should be _____.

a.

Easy to read quickly

9 0
3 years ago
Other questions:
  • Why is the statistical validity of a multiple regression design more complicated to interrogate than a bivariate design? a. Thes
    8·1 answer
  • Start with the beginning balances for these​ T-accounts: Accounts​ Receivable, $100,000​, Allowance for Uncollectible​ Accounts,
    12·1 answer
  • The trial balance of ABC Co. does not balance. АВС CO. TRIAL BALANCE JUNE 30, 2019 Debit Credit Cash 0 5740 Accounts Receivable
    7·1 answer
  • An association that Korean Americans are able to use to pool their money together and provide grants to subsidize the startup co
    10·1 answer
  • Jameson Corporation was organized on May 1. The following events occurred during the first month. Received $68,000 cash from the
    14·1 answer
  • Services can not be stored, warehoused, or inventoried. Because of this, many hotels and airlines offer deep discounts on rooms
    9·2 answers
  • A teacher instituted a new reading program at school. after 10 weeks in the​ program, it was found that the mean reading speed o
    9·2 answers
  • For a sales presentation, Pedro decides to use an informal tone that makes use of tasteful humor. What step of the problem-solvi
    7·1 answer
  • bombeck inc. has the following transactions during august of the current year. aug. 1: opens an office as a financial advisor, i
    8·1 answer
  • At 90 days past due what happens to all cardholder accounts associated with a managing account?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!