Answer:
Annual deposit= $26,344.36
Explanation:
Giving the following information:
The interest rate is 7 percent per year.
He wants to have enough money to provide him with $3,000 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.
First, we need to calculate the total amount of money required:
Final value= 3,000* (30*12)= $1,080,000
Now, we can calculate the annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
FV= 1,080,000
i= 0.07
n= 20
A= (1,080,000*0.07) / [(1.07^20) - 1]= $26,344.36
Answer: 7%
Explanation:
Given data:
P = $5,000
r = ?
t = 40years
i = $1,000,000
Solution:
NFW = 0 = -$5000 ( F/A , i , 40 ) + $1,000,000
( F/A , i , 40 ) = $1,000,000 / $5,000
= 200
From compound interest table
( F/A , 7% , 40 ) = 199.636
Therefore the return for the investment would be 7%
Hello,
to get the current yield of the bond, determine first the<span> annual interest payment which is calculated as stated
interest rate times the face value of the bond. In this question, the bond’s
value is $1,000 and the stated interest rate is 6.5 percent, therefore, the
annual interest payment is 65. Finally, the annual interest payment of 65 is
divided by the current market price quote of 101.23 to get the current yield of
64.21%. Hope this helps.</span>
Purchases = Sales units + Closing inventory - Beginning Inventory
= 7,400 + (2,400 * 120%) - 2,400
= 7,800 units