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
Nina [5.8K]
3 years ago
12

2. A depositor puts $25,000 in a saving account that pays 5% interest, compounded semiannually. Equal annual withdrawals are to

be made from the account, beginning one year from now and continuing forever. What is the maximum annual withdrawal.
Business
1 answer:
Umnica [9.8K]3 years ago
7 0

Answer:

The correct answer is $1265.60.

Explanation:

According to the scenario, the given data are as follows:

Present Value (PV) = $25,000

Rate of interest = 5%

Rate of interest ( semi annual) (r) = 2.5%

Time period (semi annual) = 2

So, First we calculate the effective annual interest rate,

Effective annual interest rate =  ( 1 + r)^n  = (1.025)^2 -1

=5.0625%

So, Annual Withdrawal = PV × Effective annual interest rate

by putting the value, we get

Annual withdrawal = $25,000 × 5.0625%

= $1265.60

You might be interested in
A loss is when: (choose a, b, c, or d)
mrs_skeptik [129]
I suppose id go for A
4 0
3 years ago
Read 2 more answers
Suppose you want to be elected as a mayor in your locality. Prepare a written speech for presenting it before your voters in 250
Montano1993 [528]

Answer:

The mayor is very important . They provide us with safety , essentials , affordable housing and more . They even make sure all of our water is clean , and make sure trash collection and sewage is being handled properly .

Previous mayors did a good job , but there are some things I will do differently . If I will mayor I will make Redmond a better place . I will improve the city’s health , and improve our lifestyles . Not only that but , I will improve fitness , enforce the laws , and focus on education .

The first thing I will do if I will mayor will be to improve police forces . There are too many people smoking pot underage . I know many kids under 21 that smoke pot illegally . There are also people who just break the laws of the city constantly , and don’t obey the city’s rules .

If I will mayor I will make more police stations , and have officers roam neighbourhoods . One benefit from this is that the city and the stations can work together and get people on probation to help clean up the city . There is a lot of litter across the city . In general this will improve Redmond’s safety , cleanliness and make people follow the law . It will make people think twice before doing something , knowing that the laws are serious business and are everywhere.

This will also improve people neighborhood so during the day and during the night . Not only will this improve safety , and enforce the law , but it will also provide jobs for up and coming police officers . The next thing I will do as mayor will be to start construction on a new gym .

This gym will include a full size basketball court / gym , yoga and dance lessons , cardio machines , weights , and weight machines . I will do this because we currently only have a half court basketball gym.

This will be fine , but there are always yoga and dance classes going on . This means you can only go for an hour or two before getting kicked out . Then if you try to use an outside court it will always be windy , which affects your shot . The outside courts also have double rims which also messes with your shots . Then , all our gyms are too small and crowded .

There are always some people getting left out and not being able to do what they want to do . I will pay for this by public funds and taxes . The gym will pay for itself eventually , due to people paying memberships to workout there we could even hold basketball tournaments there which bring in a lot of revenue . We could summer basketball leagues to get teens out of the house and to make money .

___________________________________

<h3>Please mark me as Brainlist</h3>
5 0
3 years ago
For many years China relied on central planning but is currently moving away from a central market to a free market based econom
DanielleElmas [232]

The given statement is False.

For many years China relied on central planning but is currently moving away from a central market to a free market based economy. This would mean that China's economy is in a state of Transition. This statement is not necessarily True.

Explanation:

Free market is a market structure in which there is a little or no control of the government on supply and demands of the products or services. The structure of this market depends upon the political or legal rules.

If China moved from the central to the free market, it does not mean that is it in the state of Transition. This is because, it could be the choice of China itself to keep a balance between the command and the free market economies, whatever suit its needs.

Learn more about Transition of Chinese Market at:

brainly.com/question/830955

#LearnWithBrainly

5 0
3 years ago
A 6.5 percent coupon bond with 14 years left to maturity is priced to offer a 7.2 percent yield to maturity. You believe that in
olasank [31]

Answer:

The correct answer is : 35.49

Explanation:

Calculation of the current bond price:

N = 28, I = 3.6, PMT = 32.50

FV = 1,000; CPT PV = -938.89

Calculation of the price in one year:

N = 26, I = 3.4, PMT = 32.50,

FV = 1,000; CPT PV = 974.38

So, the dollar change in price is:

$974.38 - $938.89 = $35.49

5 0
3 years ago
What are the benifits of electric kitchens
Ksju [112]
<span>Induction offers the following benefits and performance advantages: Faster. Because energy is directly transferred within the pan metal, cooking on an electric induction range is extremely fast - even faster than gas.</span>
3 0
3 years ago
Other questions:
  • Broihan Corporation has the following purchases budget for the last half of 2002:
    12·1 answer
  • Locus Company has total fixed costs of $117,000. Its product sells for $51 per unit and variable costs amount to $26 per unit. N
    15·1 answer
  • Peterson Company's general ledger shows a cash balance of $7,440 on May 31.
    10·1 answer
  • AABC Uniforms currently buys uniforms and customizes them for specific teams. The uniform manufacturer is hard to deal with and
    13·1 answer
  • If a bakery hires on person to bake cookies and another to bake cakes,the bakery is applying the concept of specialization.
    11·1 answer
  • Which ethical standard is based on the notion that life in community yields a positive outcome for the individual, requiring eac
    12·1 answer
  • Neither Subpart C (Prisoners) nor Subpart D (Children) applies to juveniles in the correctional systems because wardens of juven
    8·1 answer
  • When the terms of sale are FOB destination, ownership of the goods remains with the seller until the goods a. reach the buyer. b
    15·1 answer
  • The purpose of a value proposition is to quickly and easily convey a company or organization's product or service offering to it
    6·1 answer
  • You are considering investing in a project with the following possible outcomes: States Probability of Occurrence Investment Ret
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!