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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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1. Select the correct statement regarding relevant costs and revenues.
Gala2k [10]

Complete Question:

1. Select the correct statement regarding relevant costs and revenues.

A. Sunk costs are not relevant for decision-making purposes.

B. Relevant costs are frequently called unavoidable costs.

C. Direct labor is an example of a unit-level cost.

D. Only variable costs are relevant for decision making.

Answer:

1. A

2. D

3. B

Explanation:

1. The correct statement regarding relevant costs and revenues is that sunk costs are not relevant for decision-making purposes. Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

2. Expected future revenues that differ among the alternatives under consideration are often referred to as differential revenues. It is the difference in revenues among two (2) alternatives, which would influence decision making.

3. The benefits sacrificed when one alternative is chosen over another are referred to as opportunity costs. It is also referred to as alternative forgone.

<em>For example, Tony gives up going to see a new movie at the cinema in order to prepare for an examination, so as to get a good grade</em>.

8 0
3 years ago
After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and
Nat2105 [25]

Answer:

huh.............................................................................................

6 0
2 years ago
ASAP 65 points.
Bad White [126]

Answer:

Ebay

Explanation:

Ebay’s corporate and sales websites have  a lot of differences, the most notable being the lack of interface to purchase products on the corporate site. Another difference is that the corporate website is more like a newsfeed, showing achievements, advertisements, etc, for the company, whereas the sales site has lots of pictures and products, and it is more visually pleasing because of the colours. A final difference is there is a lot less text and writing on the sales website than on the corporate website.

Some qualities I associate with Ebay are:

That the products sold on the website are often cheaper than in the shops, because you are purchasing directly from the business.

Another quality that i think of is that it enables small businesses to start their companies without the costs of properties. as well as providing big corporations with somewhere to ensure they get sales.

A final quality that i associate with Ebay is the ability to sell your unwanted things to people, therefore making some profit.

I think Ebay does not have a target market, as when you access their sales website, they have products for every age group, baby toys, phones, mobility scooters, etc.

An example of a desire-based advertisement i have seen is the Galaxy advertisement, where the chocolate is portrayed as a luxury product that is desired by everyone.

An example of fear-based advertising is toothpaste advertisements, where they show what could happen if you don’t use their product, which makes you want to buy it.

You're welcome.

5 0
2 years ago
Royce, a California resident receives $20,000 from a rental building in Arkansas. Royce only reports the $20,000 to Arkansas and
tigry1 [53]

Answer:

$2,000

Explanation:

The state of California will grant its citizens a tax credit equal to the amount of taxes paid in other states when computing income received outside its borders. This same logic is applied by the federal government when someone earns income in foreign countries and pays taxes to a foreign government. Taxes paid to other governments decrease the amount of taxes that you pay to your own government.

5 0
3 years ago
​Lakeside, Inc. estimated manufacturing overhead costs for the year at $ 372 comma 000​, based on 181 comma 000 estimated direct
algol13

Answer:

The applied manufacturing overhead will be $392,543

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

<u>Remember </u>that the rate is done by dividing the overhead cost over a cost driver. Direct labour hours is the cost driver for this task.

372,000/181,000 = 2.0552

cost \: driver \times rate = applied \: overhead

191,000 x 2.0552 = 392,543.2

5 0
3 years ago
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