Select the correct answer.

You plan to retire in 19 years. At the point of retirement, you want to be able to withdraw 32,877 at the end of each year forev

xz_007 [3.2K]

Since no any further contributions will be made to the retirement fund, the amount you need today is $172,014.

<h3>Calculation of Present Value and Present Value of a Perpetuity</h3>

The first step is to calculate the present value (PV) of the contribution at the point of retirement in 19 years using the formula for calculating the present value (PV) of perpetuity as follows:

PV in 19 years = CF / R ............................................. (1)

Where;

PV in 19 years = Present value (PV) of the contribution at the point of retirement in 19 years = ?

CF = Cash flow or yearly expected withdrawal = $32,877

R = Rate of return after retirement = 5.02%, or 0.0502

Substituting the values into equation (1), we have:

PV in 19 years = $32,877 / 0.0502 = $654,920.3187251

The amount you need today can be calculated using the present value formula as follows:

PV = FV / (1 + r)^n ……………………………………………. (2)

Where;

PV = Present value or the amount you need today = ?

FV = Future value or PV in 19 years = $654,920.3187251

r = rate of return prior to retirement = 7.29%, or 0.0729

n = number of years = 19

Substituting the values into equation (2), we have:

PV = $654,920.3187251 / (1 + 0.0729)^19 = $654,920.3187251 / 3.80737505803714 = $172,013.607470218

Rounding to the nearest dollar, we have:

PV = $172,014

Therefore, the amount you need today is $172,014.

Learn more about present value here: brainly.com/question/17322936.

3 0

2 years ago

Which of the following is most likely true about direct and digital marketing? Group of answer choices They make it increasingly

lord [1]

Answer:

They provide buyers with anytime, anywhere access to products.

Explanation:

Direct digital marketing is the type of marketing that is done exclusively through digital channels such as email and the internet. It is becoming the more convinient way of marketing and is used by most businesses and even replaces traditional marketing in some cases.

Email marketing involves promotion of products through targeted emails to selected customer segments.

Marketing on the internet involves advert placement on various internet channels such as social media and search engines.

A minor advantage of digital marketing is that it is available at every time. So the customer can access information on products at any time of the day.

7 0

3 years ago

Read 2 more answers

Assuming that data mining techniques are to be used in the following cases, identify whether the task required is supervised or

Gnoma [55]

Answer:

Explanation:

A Supervised learning allows you to collect data or produce a data output from the previous experience while an unsupervised learning you do not need to supervise the model.

A. Deciding whether to issue a loan to an applicant based on demographic and financial data (with reference to a database of similar data on prior customers). - Supervised learning

B. In an online bookstore, making recommendations to customers concerning additional items to buy based on the buying patterns in prior transactions. - Unsupervised learning

c. Identifying a network data packet as dangerous (virus, hacker attack) based on comparison to other packets whose threat status is known - Supervised learning

d. Identifying segments of similar customers. - Unsupervised learning

e. Predicting whether a company will go bankrupt based on comparing its financial data to those of similar bankrupt and nonbankrupt firms. - Supervised learning

f. Estimating the repair time required for an aircraft based on a trouble ticket. - supervised learning

g. Automated sorting of mail by zip code scanning. - Supervised learning

H. Printing of custom discount coupons at the conclusion of a grocery store checkout based on what you just bought and what others have bought previously - Unsupervised learning

5 0

4 years ago

Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's abil

Lostsunrise [7]

Answer:

A

Explanation:

The marketing environment simply refers to the actors and forces outside marketing that affects the marketing management’s ability to build and maintain successful relationships with customers.

It is the term that is basically used when we consider external outputs that can affect the way in which relationships are built with the customers of the company.

It is a term that takes into cognizance the fact that there are some external influences that dictates and affects the relationship building mechanism of the company and its customers

5 0

3 years ago

True or false: The shared value creation framework aims to reconcile the concept of gaining and sustaining a competitive advanta

olga55 [171]

It is true that the shared value creation framework aims to reconcile the concept of gaining and sustaining a competitive advantage with corporate social responsibility.

<h3>What is corporate governance?</h3>

This refers to a formal system of oversight, accountability, and control for organizational decisions and resources.

It is the set of processes and tools which controls the operations of an organization.

Learn more about corporate governance here :

brainly.com/question/13503182

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5 0

2 years ago