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Damm [24]
3 years ago
7

g You want to save sufficient funds to generate an annual cash flow of $50,000 a year for 20 years as retirement income. You cur

rently have no retirement savings but plan to save an equal amount each year for the next 30 years until your retirement. How much do you need to save each year if you can earn 8 percent on the savings? (10 Points)
Business
1 answer:
Nonamiya [84]3 years ago
5 0

Answer:

You need to save $4,012.45 each year

Explanation:

Pertiuty in 20 years  is $50,000.

So the amount must be in account after 30 years saving to enough for above pertiuty is calculated as below:

= $50000/(1+8%)+ $50000/(1+8%)^2+......+$50000/(1+8%)^20

= $50,000 * Annuity Factor ( 1-20 years) of 8%

=$50000*9.818

= $490,907

To have $490,907 (FV) in account after 30 years (tenor), now you have save an amount each year (PMT) calculated as below:

$490,907 = PMT*(1+8%)^30+....PMT*(1+8%)^2 + PMT*(1+8%)

= PMT * Discount Factor ( 1-30 years) of 8%

$490,907 = PMT * 122.346

-> PMT = $490,907/ 122.346

= $4,012.45

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blagie [28]
The MARGINAL tax rate is the percentage of additional earnings that goes to taxes.

Marginal tax rate stands for the amount of tax paid on any additional income. It is based on progressive tax system that increases with the increase of an individual's income. Thus, it varis with the income of an individual.
7 0
3 years ago
Markets provide the efficient amount of a good or service when externalities are present. monopoly exists. public goods are pres
torisob [31]
Markets provide the efficient amount of a good or service when <span>externalities and public goods are absent.
Externalities in this case refers to an unpredictable occurence such as natural disasters, and public goods refers to the goods that given from the government for lower or higher than the market price</span>
4 0
4 years ago
A in the expected future exchange rate ______ the demand for u.s. dollars. in the u.s. demand for imports _______ the demand for
KIM [24]

A in the expected future exchange rate increases the demand for u.s. dollars. in the u.s. demand for imports does not change the demand for u.s. dollars.

In economics, demand is the number of goods that consumers are willing to purchase at various prices in a particular location and during a particular period of time. [1] The relationship between price and quantity demanded is also called the demand curve. Demand for a particular item is a function of perceived need, price, perceived quality, convenience, available alternatives, disposable income, buyer preferences, and many other options.

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Learn more about demand here

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8 0
2 years ago
For each separate case, record an adjusting entry (if necessary). Barga Company purchases $32,000 of equipment on January 1. The
scoundrel [369]

Answer:

<u>Equipment:</u>

                                                  Dr.       Cr.

Depreciation Expense          $5,520

Accumulated Depreciation                $5,520

<u>Land:</u>

Land never depreciates, so there is no adjusting entry for the Land purchased on year end.

Explanation:

Year end is not given in the data so, it is assumed the December 31 is the end of the year

Equipment

Depreciation  for the year = ( Purchase price - Residual value ) / useful life

Depreciation  for the year = ( $32,000 - $4,400 ) / 5 years

Depreciation  for the year = $5,520

8 0
4 years ago
Most organizations spend more time and money on the systems ________ phase than on any of the other phases. Group of answer choi
mariarad [96]

Answer:

maintenance phase

Explanation:

Maintenance phase -

It refers to the phase of making the changes in the software , hardware and documentation to improve the operations effectively , is referred to as the maintenance phase .

The phase is important , as it enhances the efficiency and corrects the problem .

The company or the organisation tries to invest the maximum amount in the maintenance phase .

Hence , from the given statement of the question,

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6 0
3 years ago
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