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
mel-nik [20]
3 years ago
14

An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retire

s, that is, until he is 85. He wants a fixed annual retirement income of $65,156. His retirement income will begin the day he retires, 10 years from today, and he will then get 24 additional annual payments. He currently has $100,000 saved up; and he expects to earn a return on his savings of 8 percent per year, annual compounding. To the nearest dollar, how much must he save during each of the next 10 years (with deposits being made at the end of each year) to meet his retirement goal?
Business
1 answer:
Nutka1998 [239]3 years ago
5 0

Answer:

Ans.  He must save during each of the following 10 years, at the end of each year $32,452.

Explanation:

Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.

PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Where:

A= $65,156

n= 24

r= 0.08

Therefore the present value in year 10 is:

PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012

So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.

Every should look like this.

686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }

And we solve this equation for "A".

686,012=A(14.4865625)+215,892

A=\frac{(686,012-215,892)}{14.4865625} =32,452

Best of luck.

You might be interested in
Which two advantages do renters have that home buyers don’t have?
Ulleksa [173]

The two advantages are:

- Renters are not affected by changing property price

- Renters don’t have to pay for major repairs to the property

The housing department  require the home owner to pay for major repairs that happen in the rented place (Such as broken roof or leaking gas). Not only that, the owner of the home is the one that would be financially damaged if the housing markets experience a crash.

6 0
3 years ago
Read 2 more answers
When job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. a total of 1,00
Viefleur [7K]
To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.

<span>Direct materials = $4,400
Direct labor = $5,600
Factory overhead = $2,400
Units produced = 1,000

Per unit cost = ($4,400 + $5,600 + $2,400)/1,000
Per unit cost = $12,400/1,000
Per unit cost = $12.40</span>
4 0
3 years ago
Which one sounds better?<br> Basic Betty OR Basic Betsey
Arlecino [84]

Answer:

Basic Betty

Explanation:

Sounds more normal

6 0
3 years ago
Read 2 more answers
The budgeted income statement does not rely on information from the ______ budget.
Marta_Voda [28]

The budgeted income statement does not rely on information from the production budget.

<h3>What is a budgeted income statement?</h3>

The expected profit, revenue, and expenses for the upcoming year or months are listed in a budgeted income statement, which is a financial report. Its purpose is to assist businesses in future planning, better decision-making, and resource allocation.

All of the line categories seen in a typical income statement are included in the budgeted income statement, but it is an estimate of what the income statement would look like in future budget periods.

The budgeted income statement makes it easier to compare planned and actual income and expense components at the end of the month. It aids in evaluating the efficiency of the company's financial planning procedure.

To learn more about production budget refer to:

brainly.com/question/17255948

#SPJ4

3 0
1 year ago
Which of the following statements is CORRECT? a. Because most stock ownership is concentrated in the hands of a relatively small
lbvjy [14]

Answer:

d. The potential exists for agency conflicts between stockholders and managers.

Explanation:

  • A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
6 0
3 years ago
Other questions:
  • Identify whether each of the examples represent a "House of Brands" or a "Branded House" for of brand architecture. Procter &amp
    13·1 answer
  • The insurance claims organization that offers certification as a certified medical billing specialist is the
    7·1 answer
  • Hotwax makes surfboard wax in a single operation. This period, Hotwax purchased $62,000 in raw materials. Its production departm
    13·1 answer
  • Exercise 4-09 Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales $1,300,000 Write-off of
    10·1 answer
  • Jean, a geologic specialist, agreed to accept an overseas assignment for her company after the company agreed to store her yacht
    14·1 answer
  • Your grandmother has promised to give you $10,000 when you graduate from college. If you speed up your graduation by one year an
    10·1 answer
  • Murphy Company, a cash-basis, calendar-year taxpayer, received a call on December 28, year 1, from a client stating that a check
    13·1 answer
  • 7 points Check my workCheck My Work button is now disabled1Item 3 A company with $795,000 in operating assets is considering the
    13·1 answer
  • Câu 1 Bản chất của quản trị chiến lược là phác thảo hình ảnh tương lai của doanh nghiệp trong lĩnh vực hoạt động trên cơ sở khai
    9·1 answer
  • Which of the following statements accurately describe the phases of a business cycle? Check all that apply.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!