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astraxan [27]
2 years ago
10

In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401k account. How much will you be able

to withdraw each year for 10 years, starting one year after your last deposit, if you can earn a real return of 10% per year and the inflation rate averages 2.8% per year?
Business
1 answer:
Natali5045456 [20]2 years ago
5 0

Answer:

Annual withdraw= $173,483.28

Explanation:

The real rate of return is the result of deducting from the nominal rate the inflation rate.

<u>First, we will determine the nominal rate of return:</u>

Nominal rate= 0.10 + 0.028= 0.128

<u>Now, we need to calculate the value of the investment at the time of retirement:</u>

Annual deposit= $12,000

Interest rate= 0.128

Number of periods= 20 years

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {12,000*[(1.128^20) - 1]} / 0.128

FV= $948,935.34

<u>Finally, the annual withdrawal:</u>

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

Annual withdraw= (948,935.34*0.128) / [1 - (1.128^-10)]

Annual withdraw= $173,483.28

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"The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This lin
Aleksandr-060686 [28]

Answer:

ethical climate

Explanation:

We were informed that the link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time.

In this this case is most evident in firms that have a strong ethical climate. Strong ethical climate in finance reffered to the degree of ethics been utilized by an organization, it involves the morals and improve employee morale when they experience ethical climate such as caring, independence and other ethical factors.

.

4 0
3 years ago
Capital brought into a business in exchange for a percent of ownership in the business is called
neonofarm [45]

Answer:

D: Equity financing

Explanation:

Equity is ownership in the business - equity financing means giving up ownership in order to secure financing.

3 0
3 years ago
If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journal
Paraphin [41]

Answer:

(C) Debit Cash, credit Unearned Revenue.

Explanation:

The journal entry is shown below:

Cash A/c Dr $2,000,000

   To Unearned revenue A/c $2,000,000

(Being the receipt of cash is recorded)

Since the cash is received so we debited the cash account as it increases the current assets and credited the unearned revenue account as it is a current liability account so the same is to be credited

3 0
3 years ago
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every
kozerog [31]

Answer:

Explanation:

We were informed from the question that;

BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.

AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).

✓✓The amount of tax on wine = $6 - $3 = $3 per bottle

✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax

= $6 - $4

=$2 per bottle

✓✓The tax burden on Producers = Price received before tax - price received after tax

= $4 - $3

=$1 per bottle

Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.

The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)

This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.

8 0
3 years ago
________ business processes are dynamic, nonroutine, long-term business processes such as financial planning, expansion strategi
NNADVOKAT [17]

Strategic business processes are dynamic, nonroutine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions.

This is further explained below.

<h3>What is business?</h3>

Generally, An organization or entrepreneurial body that engages in commercial, industrial, or professional activity is what we mean when we talk about "doing business."

In conclusion, Business processes that are dynamic, non-routine, and long-term are referred to as strategic business processes. Some examples of strategic business processes are financial planning, growth plans, and stakeholder interactions.

Read more about Strategic business

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3 0
1 year ago
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