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lisabon 2012 [21]
2 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]2 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

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Answer:

$849,000 gift card revenue should GoodBuy recognize in 2018

Explanation:

gift cards revenue of GoodBuy recognized in 2018

=  gift cards redeemed + remaining gift cards

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max2010maxim [7]

Answer:

-4 units

Explanation:

Using the midpoint method, Blake's income elasticity of demand for generic potato chips is given by the change in demand (D) multiplied by his average income (I), divided by the change in income multiplied by the average demand:

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Blake's income elasticity of demand is -4 units.

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2 years ago
As part of his overall stock portfolio, jason bought a few shares of facebook. in this context, he would best be described as __
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Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.

Explanation:

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According to the Techstar’s video describing entrepreneurial journeys, and their efforts to support entrepreneurship, what is th
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