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Black_prince [1.1K]
3 years ago
9

After retirement, you expect to live for 24 years. You would like to have $75,000 income each year. How much should you have sav

ed in your retirement account to receive this income, if the annual interest rate is 9 percent per year
Business
1 answer:
poizon [28]3 years ago
5 0

Answer:

The amount that you should have saved in your retirement account to receive this income is:

= $727,995.88.

Explanation:

a) Data and Calculations:

Expected lifespan = 24 years

Expected annual income = $75,000

Interest rate per year = 9%

The amount of savings in the retirement account to receive this income is calculated from an online financial calculator as follows:

N (# of periods)  24

I/Y (Interest per year)  9

PMT (Periodic Payment)  75000

FV (Future Value)  0

 

Results

PV = $727,995.88

Sum of all periodic payments = $1,800,000.00

Total Interest = $1,072,004.12

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What basically compares what an individual owes compared with how much they earn monthly?
STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

3 0
3 years ago
Yellow​ Press, Inc., buys paper in​ 1,500-pound rolls for printing. Annual demand is 3 comma 000 3,000 rolls. The cost per roll
GenaCL600 [577]

Answer:

59 orders

Explanation:

For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Carrying cost = $875 × 20% = $175

And, other items values would remain the same

ow put these values to the above formula

So, the value would be equal to

= \sqrt{\frac{2\times \text{3,000}\times \text{\$75}}{\text{\$175}}}

= 50.71 units

Now The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $3,000 ÷ 50.71 units

= 59 orders

7 0
3 years ago
A company is trying to decide between two independent projects. Each project has a cost of capital of 12%. Project A has an IRR
Rina8888 [55]

Answer:

Neither project should be chosen

Explanation:

Given that

Each project cost of capital is 12%

The IRR of project A is 11.4%

And, the IRR of project B is 11.1%

As we can see that the cost of capital of each project with their internal rate of return so no project should be selected

Therefore the above statement represent an answer

The same should be relevant

6 0
3 years ago
The U.S. and European countries do not need trade agreements because they have always freely traded without duties or quotas. tr
Mrrafil [7]
I think the answer is false!
4 0
4 years ago
Lasley Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat
yKpoI14uk [10]

Answer:

CMR: 52% --> each dollar of sales generates 52 cent of contribution

VCR: 48% --> 48 cent per dollar of sales are cost

BEPu:    10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.

BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.

Explanation:

selling price per hat:  $ 25

variable cost per hat: $  12

Contribution per unit $  13

Contribution Ratio:

13/25 = 0.52

Variable cost Ratio:

12/25 = 0.48

Fixed cost: 130,000

Break even point:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{130,000}{0.52} = Break\: Even\: Point_{dollars}

dollars of sales BEP: 250,000

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

\frac{130,000}{13} = Break\: Even\: Point_{units}

units sold to pay up variable and fixed cost: 10,000

4 0
3 years ago
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