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
lisabon 2012 [21]
3 years ago
5

You estimate that by the time you retire in 35 years, you will have accumulated savings of $2 million. If the interest rate is 8

% and you live 15 years after retirement, what annual level of expenditure will those savings support?
Business
1 answer:
lbvjy [14]3 years ago
5 0

Answer:

We can use the present value of an annuity formula to determine the annual distribution. I'm assuming that your distributions will be made in a similar manner to an annuity due (the first payment happens when you retire).

annual distribution = principal balance / PV annuity factor

  • principal balance = $2,000,000
  • PV factor annuity due, 8%, 15 periods = 9.24424

annual distribution = $2,000,000 / 9.24424 = $216,350.94

if instead, the first distribution is received at the end of the first year of retirement, then the annual distribution will be:

annual distribution = principal balance / PV annuity factor

  • principal balance = $2,000,000
  • PV factor ordinary annuity, 8%, 15 periods = 8.55948

annual distribution = $2,000,000 / 8.55948 = $233,659.05

You might be interested in
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
vichka [17]

Answer:

b. $290,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:

= Net income reported on the income statement + decrease in account receivable

where,

Net income reported = $280,000

And, the decrease in account receivable is $10,000 ($70,000 - $80,000)

So, the cash flow from operating activities

= $280,000 + $10,000

= $290,000

The decrease in account receivable implies that more cash is come so it would be added and the same is shown above

5 0
3 years ago
Over time, members of the supply chain often formalize their relationship by entering into contracts that dictate various terms,
Evgen [1.6K]

Answer:

<em>c) contractual vertical marketing system.</em>

Explanation:

A contractual vertical marketing system <em>requires a legal agreement to manage the overall process between the various levels of the distribution or production chain.</em>

This system allows businesses to take advantage of economies of scale and advertising bounds.

Franchise system, sponsored retail and sponsored wholesale are aspects of a vertical marketing contractual framework.

4 0
3 years ago
Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore, MD. Marlin has many rivals based in Ch
Ostrovityanka [42]

Answer:

<em>Focus Strategy</em>

Explanation:

Focus Strategy <em>is a marketing strategy in which a business focuses its resources on entering or expanding into a narrow segment of the market or industry.</em>

Usually a focus strategy is used where the company knows its section and has products to meet its needs competitively.

Focus strategy is one of three strategies for generic marketing.

7 0
3 years ago
What is plagarism in a essay ​
WITCHER [35]

Explanation:

copying another form of writing

7 0
3 years ago
Read 2 more answers
Whenever you have a concern or complaint about an issue at work, to whom should you talk with first?
rusak2 [61]
I don’t know if i’m right or the answers that were given to you, but I believe it’s the ombudsman. Correct me if i’m wrong :)
6 0
3 years ago
Other questions:
  • Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specific
    12·1 answer
  • On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of re
    5·1 answer
  • The 2011 income statements of Leggett &amp; Platt, Inc., reports net sales of $3,636.0 million in 2011 and $3,359.1 million in 2
    9·1 answer
  • How would u approach a fellow co-worker consistently does not perform hand-hygiene when it is indicated or appropriate.
    9·1 answer
  • Here is the income statement for Metlock, Inc. METLOCK, INC. Income Statement For the Year Ended December 31, 2020 Sales revenue
    12·1 answer
  • What makes a project productive? What makes a project counterproductive? Explain.
    13·1 answer
  • Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets
    5·1 answer
  • Is Caterpillar a good stock investment? why?​
    11·1 answer
  • Knowledge capital is nonrival in the sense that Select one: a. firms do not compete to be the first to develop new technologies.
    7·1 answer
  • If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!