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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

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If real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had incre
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Answer:

10%; 16%

Explanation:

Given that,

Real GDP in the first quarter of 2016 = $10 billion

Real GDP in the first quarter of 2017 = $11 billion

Increased from the fourth quarter of 2016 to the first quarter of 2017 = 4%

Growth rate from the first quarter of 2016 to first quarter of 2017:

= \frac{GDP_{2017}-GDP_{2016}  }{GDP_{2016}}\times 100

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= 10%

Real GDP growth rate is as follows:

= 4% × 4

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3 0
3 years ago
American Chip Corporation’s reporting year-end is December 31. The following is a partial adjusted trial balance as of December
guajiro [1.7K]

Answer:

Explanation:

The closing entry for the following accounts are shown below:

1. Sales Revenue A/c Dr 760,000

  Interest Revenue A/c Dr $3,500

             To Income Summary $763,500

 (Being revenue account closed)

2. Income summary A/c Dr $593,200

                          To cost of goods sold $425,000

                          To Interest Expense $5,100

                           To Salaries  Expense $110,000

                           To depreciation  Expense $31,000

                            To Rent Expense $16,000

                             To  Insurance expense $6,100

(Being expenses accounts are closed)

3. Income summary A/c Dr $170,300

                           To Retained earning $170,300

(Being the difference is credited to retained earning)

The retained earning is computed by

=  Number 1 - Number 2

=  $763,500 -  $763,500

= $170,300

5 0
3 years ago
In EduTech, a software company, the views and suggestions of managers are considered unquestionable and employees never go again
tamaranim1 [39]

Answer:

Power Distance

Explanation:

Power Distance -

It refers to the distribution of the power and strengths within any organisation if referred to as power distance .

In most of the scenario the distribution of power is very unequal and unfair .

Most of the high power people tends to dominate over others and misuse their strengths in a very unfair manner .

Hence , from the given scenario of the question ,

The manager of the company has all the power and tends to dominate over others and others people tends not to go against his order .

Hence , the correct term is power distance .

8 0
3 years ago
Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the i
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3 years ago
Which of the
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Answer:

B...................................

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