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NARA [144]
3 years ago
8

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How

much would you need to have saved in your retirement fund to achieve this goal
Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

$1,000,000

Explanation:

The full question is shown below:

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)

In order to receive $80,000 per year forever, one needs to save the present value of the annual  cash flow using the present value formula for perpetuity as provided below:

PV of perpetuity=annual cash flow/annual interest rate

PV of perpetuity=$80,000/8%

PV of perpetuity=$1,000,000

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Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes Companies, Inc. (
nikitadnepr [17]

Answer:

Portfolio return = 0.035 or 3.5%

Explanation:

The portfolio return is a function of the weighted average of individual stocks' returns that form up the portfolio. The formula to calculate the portfolio return is as follows,

Portfolio return = wA * rA  +  wB * rB  +  ...  +  wN * rN

Where,

  • w represents the weight of each stock in the portfolio
  • r represents the return of each stock

First we need to calculate the investment of each stock,

Abbott = 200 * 50 = $10000

Lowes = 200 * 30 = $6000

Ball = 100 * 40 = $4000

Portfolio return = (10000 / 20000) * -0.10  +  (6000/20000) * 0.20  +  

(4000/20000) * 0.125

Portfolio return = 0.035 or 3.5%

4 0
3 years ago
It is estimated that logistics costs including transportation, distribution center operations, and order processing represent __
stira [4]

It is estimated that logistics costs including transportation, distribution center operations represent 25 to 30% of the retail price that you pay for a new car.

<h3>What is retail price?</h3>

The retail price is the price that a customer will pay when purchasing a product at a retail store. This is the final price that customers pay for the goods purchased.

Here, other expense cost are added before a retail price is decided by a seller so that they can have profit from the sale.

Hence, It is estimated that logistics costs including transportation, distribution center operations, and order processing represent 25 to 30% of the retail price that you pay for a new car.

Learn more about retail price here : brainly.com/question/12929999

6 0
3 years ago
Has someone ever repeatedly asked for your phone number and refused to take "no" for an answer? Now when that individual asks fo
il63 [147K]

Answer:

<u> its intangible product.</u>

Explanation:

Analyzing the context of the above question, it can be said that in terms of product strategy, the telephone message from the Reject Hotline is classified as its intangible product, as this resource is configured as a service, which is something that is not it can touch, see or feel, that is, it is intangible, but it is the performance of an activity that satisfies a need.

8 0
3 years ago
Which of the following observations of children is the most objective? A. Joan was playing with blocks, building a structure, wh
valina [46]
Im gonna guess c? or D.
3 0
3 years ago
Human capital is Select one: a. the same thing as technological knowledge. b. the same thing as labor. c. the tools and equipmen
Anettt [7]

Answer:

The correct answer is letter "D": knowledge and skills that workers have acquired.

Explanation:

Human Capital is all the creative skills and expertise embodied in a company's employees, skills which brings economic value for the company. The most efficient way of producing goods and services is to know the "how to." Human capital can be used more efficiently like any other kind of capital and this leads to an improvement in the quality and quantity of production.

6 0
3 years ago
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