Answer:
Annual deposit= $21,568.87
Explanation:
Giving the following information:
You have just turned 30 years old. Every dollar in the plan earns 9 % per year. You cannot make withdrawals until you retire on your 60th birthday.
You will need $ 98,000 per year starting at the end of the first year of retirement and ending on your one-hundredth birthday.
First, we need to calculate the total amount needed at age 60.
Final value= 30years*98,000= $2,940,000
To calculate the annual deposit we need the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (2,940,000*0.09)/[(1.09^30)-1]= $21,568.87
<span>part of a contractionary fiscal policy</span>
+ is you know what you are looking for in life, what are your goals and what you need to do to achieve them.
- is getting bored soon (changing your mind), and not enjoying your childhood.
I hope i helped :)
Answer:
Ans. The average annual rate of return over the four years is 2.792%
Explanation:
Hi, first let´s introduce the formula to use
![r(Average)=\sqrt[n]{(1+r(1))*(1+r(2))*(1+r(3))+...(1+r(n))}-1](https://tex.z-dn.net/?f=r%28Average%29%3D%5Csqrt%5Bn%5D%7B%281%2Br%281%29%29%2A%281%2Br%282%29%29%2A%281%2Br%283%29%29%2B...%281%2Br%28n%29%29%7D-1)
Where:
r(1),(2),(3)...n are the returns in each period of time
n =number of returns to average (in our case, n=4).
With that in mind, let´s find the average annual return over this four years.
![r(Average)=\sqrt[4]{(1+0.025)*(1+0.025)*(1+0.12)+(1-0.07))} -1=0.022792](https://tex.z-dn.net/?f=r%28Average%29%3D%5Csqrt%5B4%5D%7B%281%2B0.025%29%2A%281%2B0.025%29%2A%281%2B0.12%29%2B%281-0.07%29%29%7D%20-1%3D0.022792)
Therefore, the average annual return of this invesment in 4 years is 2.2792%
Best of luck.
A globalization change in a relationship affecting a government
