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viva [34]
3 years ago
13

You have just retired with savings of $2 million. If you expect to live for 57 years and to earn 7% a year on your savings, how

much can you afford to spend each year (in $ dollars)
Business
1 answer:
galben [10]3 years ago
6 0

Answer:

Annual withdraw= $143,023.66

Explanation:

Giving the following information:

Present value (PV)= $2,000,000

Number of periods (n)= 57

Interest rate (i)= 7% a year

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]

Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]

Annual withdraw= $143,023.66

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2 years ago
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Dvinal [7]

Answer:

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03-May   Merchandise Inventory               $20,000

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05-May    Accounts Receivable                 $21,000

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05-May     Cost of goods sold                     $15,000

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                      To Accounts Receivable                           $1,750

07-May      Merchandise Inventory               $1,250

                      To Cost of goods sold                                $1,250

08-May      Sales Returns and allowances    $300

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                   Sales Discounts                           $379

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8 0
3 years ago
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Masteriza [31]

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Answer:

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