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Radda [10]
3 years ago
7

Finding the required interest rate: Your parents will retire in 18 years. They currently have $250,000, and they think they will

need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds? excel formula
Business
1 answer:
Salsk061 [2.6K]3 years ago
7 0

Answer:

i= 8% annual compunded

Explanation:

Giving the following information:

Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement.

We need to calculate the interest rate required to reach the $1 million goal in 18 years without any additional deposit.

FV= PV*(1+i)^n

Isolating i:

i= [(FV/PV)^(1/n)] - 1

i= [(1,00,000/250,000)^(1/18)] - 1= 0.08

i= 8% annual compunded

You might be interested in
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres
Scorpion4ik [409]

Solution:

Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.

Total income before fair growth= 20* 10= 200.

Total income following fair growth = 11* 20= 220.

A 10% increase in the fare therefore leads to a 10% increase in the driver's revenue.

Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.

The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.

When the rate increased from 10% to 11, riders declined from 20% to 19%

Total revenue before fair growth is 20* 10= 200

The gap between revenue and fair growth is 19* 11= 209

This means that a realistic 10% raise doesn't result in a 10% boost on income Because the market curve for taxi rides is not 100% inelastic, but rather low inelastic, so that a fair increase (control) allows consumers to lose their incomes.

7 0
3 years ago
Time to reach a financial goal You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the e
andrew11 [14]

Answer:

It take to reach your goal is 11 years

Explanation:

given data

initial fixed amount = $42,180.53

deposit additional = $5,000

account totals = $250,000

expect to earn r = 12%

solution

we will apply Future value of annuity that is express as

Future value of annuity = initial fixed amount ×  (1+r)^{t} + deposit additional  × \frac{(1+r)^t-1}{r}     ......................a

put here value and we get

250,000 = 42,180.53  \times (1+0.12)^{t} + 5,000 \times  \frac{(1+0.12)^t-1}{0.12}          

solve it we get

time t = 11

so it take to reach your goal is 11 years

6 0
3 years ago
Which subtype of ADHD is characterized by lethargic, daydreamy behavior?
OverLord2011 [107]

Answer:

predominantly inattentive

Explanation:

ADHD is a disorder of neurobiological origin, in which there is a deficit in the functional structure of certain brain areas or centers related to the regulation of different attention processes.

The child with ADHD has difficulties in selecting the relevant focus of attention, (he does not know what he has to attend to) is slow in motor tasks and cognitive tasks, is easily distracted, and all this can lead to school age at learning difficulties, as well as having an impact on the emotional and personal areas of the child, (low self-esteem, anxiety, behavioral problems ...)

6 0
3 years ago
(Inspired by the events in the Montreal cement market in 1966.) You are the CEO of Independent Cement (IC), and are considering
pychu [463]

Answer:

1) C.C. is currently selling at $ 12. So, if I.C.'s price is equal to C.C.'s it can sell to all the 400 customers. Hence, IC should keep the price at $12. The CC's price after price determination by IC will be $ 11 as doing so, CC will be able to sell to all 400 customers. Expected profits of IC will be as follows:

Sales =12 *400

Less : Marginal cost = 3*400

Expected profits = $ 3600

(2) If IC builds a small plant, then it can sell upto its capacity i.e. 100 units to 100 customers, if its price is no greater than IC. So IC can keep its price at $ 12. Expected profits of IC = 100 *12 less marginal cost i.e. 3*100 = $ 900.

As a result of above, CC will keep its price either 11 or 12.

Case 1( If CC's price is 11)

Expected profits = sales- marginal cost = 400* 11 - Marginal cost i.e. 4 * 400= 2800

Case 2 ( If CC's price is 12)

Expected profits = sales- marginal cost = 300* 12- Marginal cost i.e. 4* 300 =2400

So, CC's price would be $ 11 as it leads to maximisation of his profits

(3) The choice of size of plant will be dependent upon the profits and is driven by profit maximisation factor.

Case 1 ( If small plant is chosen)

Sales = 100 * 12

Less : Marginal cost = 100 * 3

Profits = $ 900

Case 2 ( If large plant is chosen, we should keep our price at 11 as CC would always keep the price at 11 , not 12 as it maximises its profit at 11)

Sales = 400 * 11

Less marginal cost : 3 * 400

Profits = 3200

Hence, large plant should be chosen

4 0
3 years ago
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