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prisoha [69]
3 years ago
11

Joe Downey is currently 65 years of age. He is currently drawing $20,000 a year out of his IRA. He expects to live to 100 and wa

nts to know what he needs now to insure himself that he will be able to draw the $20,000 at the beginning of each year for the next 35 years. He believes the account will earn 6 percent compounded annually for the next 35 years. How much money does he need in his account today?
Business
1 answer:
astra-53 [7]3 years ago
3 0

Answer:

$307,382.82

Explanation:

current age = 65 years

Requires $20,000 at the beginning of the year for the next 35 years.

interest rate = 6%

So, initial investment = PV of all the inflows

= $20,000+ 20,000×PV×( 6%, 35% years)

=$20,000+ 20,000×14.3681

= $20,000+ 287,362.82= $307,382.82

So, he must invest $307,382.82 to get $20,000 every year.

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lilavasa [31]
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<h3>How is it possible to have high sales and high profits and run out of cash while running a business?</h3>

It is entirely possible if you have a high level of accounts receivables and inventory and a low level of accounts payables. A sale is recorded when an invoice is raised, and a shipment is delivered; this does not always imply that you received cash and that it is recorded in your accounts receivable. Similarly, if you keep a lot of inventory, a lot of your money is locked up until the inventory is sold. On the contrary, if your payment terms with your suppliers are less favorable, you will end up paying before your receivables convert to cash. As a result, high sales and profits do not always imply a strong cash position.

Learn more about profit:

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4 0
1 year ago
What analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales
DedPeter [7]

Answer:

exception reporting

Explanation:

A decision support system (DSS) can be regarded as a computerized program that is utilized in supporting determinations as well as judgments, and courses of action s regards a

an organization or a business.

An exception reporting can be regarded as process of using document which states out the instances whereby actual performance is been deviated from expectations in a significantly manner, this is usually in a negative direction. The main reason for this report is to align the attention of management on areas that requires immediate action.

It should be noted that the analysis feature of a decision support system (DSS) pinpoints the region that generated the highest total sales is exception reporting.

6 0
2 years ago
If we add successive laborers to work a given amount of land on a wheat farm, eventually:____.
Alexus [3.1K]

Answer:

d. the increases in wheat harvested will get smaller and smaller.

Explanation:

A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).

An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.

Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.

When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.

If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.

6 0
2 years ago
Read 2 more answers
Fresnas Corp., a company that designs in its New York headquarters and had manufactured apparel in Malaysia, now practices insho
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Answer:

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Explanation:

Inshoring refers to the process of moving a business operation from overseas to the country of origin where the headquarters is located. Therefore based on the information provided within the question it can be said that in this scenario Fresnas Corp. keeps its research team in close proximity. Since they are moving every business operation closer to the headquarters thus keeping them close by.

3 0
2 years ago
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Margarita [4]

Answer:

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2. If damaged goods can be sold at a reduced price, they are included in inventory.

3.Damaged goods are not included in inventory if they cannot be sold

4. A loss in value is reported in the period when goods are damaged or become obsolete.

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3 years ago
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