1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AfilCa [17]
3 years ago
14

At age 37 you start saving for retirement if your investment plan pays an APR of 6% and you want to have $.09 million when you r

etire in 28 years, how much should you deposit monthly?
Business
1 answer:
r-ruslan [8.4K]3 years ago
7 0

Answer:

Monthly deposit= $1,036.116

Explanation:

Giving the following information:

Future Value (FV)= $900,000

Number of periods= 28*12= 336 months

Interest rate (i)= 6% = 0.06/12= 0.005

<u>To calculate the monthly deposit, we need to use the following formula:</u>

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

A= monthly deposit

Isolating A:

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

A= {900,000*0.005) / [(1.005^336) - 1]

A= $1,036.116

You might be interested in
Diversification is important and investing because
Lelechka [254]
You don't want all of your eggs in one basket. If one stock and/sector of the market sinks, hopefully it will be offset by your diversification.
6 0
3 years ago
Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per ho
kompoz [17]

Answer: $40,800

Explanation:

Each unit requires 2 hours of direct labor.

1,020 units would therefore require:

= 1,020 * 2

= 2,040 hours of labor

The direct labor rate is $20 per hour. If there are 2,040 hours to be worked, the cost would therefore be:

= 20 * 2,040

= $40,800

7 0
3 years ago
Explain the Taylor Rule
Arisa [49]

Explanation:

Ok so the Taylor Rule is one kind of targeting monetary policy rule of a central bank. The Taylor rule was proposed by the American economist John B. Taylor in 1992, who is currently the George P.Shultz Senior Fellow In Economics at and the director of Standford’s Introductory Economics Centre.

Also the Taylor Rule suggests that the Federal Reserve should raise rates when inflation is above target or when gross domestic product (GDP) growth is too high and above potential. It also suggests that the Fed should lower rates when inflation is below the target level or when GDP growth is too slow and below potential.

6 0
3 years ago
Over the last six years, prices and investing activity in the bond market rose for two years and then fell consistently for the
bezimeni [28]

Answer:

Secular bear market

Explanation:

A secular bear market is a long term trend that lasts between 5 to 25 years which consists of a smaller bull market and a larger bear market. It means that a small period of increase in prices is followed by a prolonged period of a decrease in price.

A secular bear occurred between January 1980 to June 1999 in the gold market.  During this time, the price of gold fell   $850/oz  to  $253/oz

A secular bull market is a long term trend that lasts between 5 to 25 years which consists of a small period of decline in prices is followed by a prolonged period of a rise in price.

8 0
3 years ago
What investment type typically carries the least risk
Angelina_Jolie [31]
Certificates of Deposit (CDs), U.S Treasury Bills, and savings accounts are generally regarded as the least risky investments, given that they are backed - at least up to a certain limit - by the U.S government. 

CDs are essentially fixed-term savings accounts, which means you must deposit your funds for a set amount of time, until the account reaches what is called "maturity." Withdrawing funds before this point typically leads to a fee. In return for sacrificing liquidity, CDs tend to offer higher interest rates than normal savings accounts. These rates are most often fixed, though they sometimes come with a feature that enables you to readjust your interest rates once over your account's lifetime. Bank-issued CDs are also insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, though this figure has dropped to $100,000 January 1, 2014. Credit Union-issued CDs are insured by another government agency, the National Credit Union Administration (NCUA), which provides the same coverage as the FDIC. 

U.S Treasury Bills are sold by the government to investors as a way to fund short-term government debts. If you purchase a U.S Treasury Bill, you are basically loaning the government a certain amount of money in return for the government's promise to pay you back with a predetermined higher amount when the bill reaches maturity. U.S Treasury Bills are typically issued with maturity terms of one month, three months, six months and 1 year.

As we all know, savings accounts are offered by banks and credit unions and provide variable interest rates, which means their rates fluctuate in accordance with the Prime Rate. While there is no time requirement for a savings account, as there is with a CD, the law only allows consumers to make up to six transfers or withdrawals from a savings account per month (not including in-person ATM or branch withdrawals). Savings accounts offer the same as insurance protections as CDs.

Hope this helps you =)

6 0
3 years ago
Other questions:
  • A walking path at a local park is modeled on the grid below where the length of each grid square is 10 feet. The town needs to s
    8·1 answer
  • Outstanding stock of the Marin Corporation included 54000 shares of $5 par common stock and 20000 shares of 5%, $10 par non-cumu
    10·1 answer
  • Students who live on campus and purchase a meal plan are randomly assigned to one of three dining halls: the Commons, Northeast,
    5·2 answers
  • Complete the statement with the correct word.
    7·1 answer
  • The book balance in the checking account of Kyri Enterprises as of November 30 is $2,964. The bank statement shows an ending bal
    10·1 answer
  • Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable cost
    6·1 answer
  • For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). Th
    9·1 answer
  • What is the difference between productive and service oriented professions Explain with examples​
    15·1 answer
  • How Big Bazaar retail store would retain it's business in today's competitive world among retail firms?​
    6·1 answer
  • 1. Sell product for $25,000 with historical cost of $20,000 2. Sell product for $20,000 with historical cost of $16,000 3. Sell
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!