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UkoKoshka [18]
3 years ago
11

How much money should Timothy and Tiffany deposit annually for 20 years in order to provide an income of $30,000 per year for th

e next 10 years? Assume an interest rate is a constant 4%

Business
2 answers:
dalvyx [7]3 years ago
8 0

Answer: $8,171.44

Explanation:

The present value of the income of 10 years now is the future value of the payments in 20 years.

The present value is therefore;

= 30,000 * Present value of annuity interest factor, 4%, 10 years

= 30,000 * 8.111

= $243,330‬

As  $243,330‬ is the future value of the payments in 20 years.

The payment is therefore;

243,330‬ = Payment * Future value of annuity interest factor, 4%, 20 years

243,330 = Payment * 29.7781

Payment = 243,330/29.7781

= $8,171.44

LenKa [72]3 years ago
6 0

Answer:

$8,171.37

Explanation:

first we must find the value of their account before they start receiving the distributions, (i.e. how much money they need to have in 20 years):

present value = annual payments x annuity factor

  • annual payments = $30,000
  • annuity factor (PV, 4%, 10 periods) = 8.1109

present value = $30,000 x 8.1109 = $234,327

now we need to calcualte the annual contribution in order to have $234,327 in 20 years:

future value = annual payment x annuity factor

annual payment = future value / annuity factor

  • future value = $234,327
  • annuity factor (FV, 4%, 20 periods) = 29.778

annual payment = $234,327 / 29.778 = $8,171.37

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Year-to-date, Oracle had earned a −1.53 percent return. During the same time period, Valero Energy earned 8.07 percent and McDon
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Answer:

The portfolio return is 2.35%

Explanation:

The portfolio return is the weighted average of the individual stock returns that form up the portfolio. The weightage of each stock is the investment in each stock as a percentage of total investment in the portfolio. The return of a three stock portfolio can be calculated using the following formula,

rP = rA * wA  +  rB * wB  +  rC * wC

Where,

  • rA, rB & rC represents the individual stock returns
  • wA, wB & wC represents the weightage of each stock

rP = -1.53% * 0.25 + 8.07% * 0.3 + 0.7% * 0.45  

rP = 0.023535 or 2.3535% rounded off to 2.35%

7 0
4 years ago
A schedule or curve that shows the amount of a nation's output (real GDP) that buyers collectively desire to purchase at each po
Wittaler [7]

Aggregate demand is a schedule or curve that shows the amount of a nation's output (real GDP) that buyers collectively desire to purchase at each possible price level.

<h3>What is Aggregate demand?</h3>
  • Refers to the summation of goods and services that an economy produced at an available price.
  • Aggregate demand is concerned with the finished goods in an economy
  • Government expnses on education funding for example increases aggregate demand.

Hence, we can conclude that aggregate demand is a schedule or curve that shows the amount of a nation's output (real GDP) that buyers collectively desire to purchase at each possible price level.

Learn more about aggregate demand here : brainly.com/question/25749867

7 0
2 years ago
3.
marin [14]

Answer:

The Standard course duration is the normal duration of the course for a full-time student.

advantages =Standard Costing is used to minimize costs, improve quality, and increase efficiency. It also enables managers to compare actual results with expected results

disadvantage =Standard costs are usually associated with a manufacturing company's costs of direct material, direct labor, and manufacturing overhead. The disadvantages include that implementing a standard costing system can be time consuming, labor intensive, and expensive.

8 0
1 year ago
On January 1, a company agrees to pay $20,000 in three years. If the annual interest rate is 10%, determine how much cash the co
Step2247 [10]

Answer:

Amount borrow P = $15,026.296

Explanation:

Given:

Amount pay A = $20,000

Number of year n = 3

Rate r = 10% = 0.10

Find:

Amount borrow P

Computation:

A = P[1+r]ⁿ

20,000 = P[1+r]³

20,000 = P[1+0.10]³

20,000 = P[1.10]³

20,000 = P[1.331]

Amount borrow P = $15,026.296

5 0
3 years ago
Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah
makkiz [27]

Answer:

PV= $90,990.39

Explanation:

Giving the following information:

Future value= $140,000

Number of periods= 5 years

Rate of return= 9%

<u>To calculate the price to pay today, we need to calculate the present value. We will use the following formula:</u>

PV= FV/(1+i)^n

PV= 140,000 / (1.09^5)

PV= $90,990.39

7 0
3 years ago
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