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Alexeev081 [22]
3 years ago
5

You have 40 years left until retirement and want to retire with $5 million. Your salary is paid annually, and you will receive $

50,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a 10 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Business
1 answer:
Marat540 [252]3 years ago
5 0

Answer:

16.67%

Explanation:

Calculation to determine what percentage of your salary must you save each year

First step is to calculate the Annual savings

Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]

Annual savings=$5 million*0.07/(1.1^40-1.03^40)

Annual savings=$8333.88

Now let determine the percentage of the salary you must save each year

Proportion of savings=$8333.88/$50,000

Proportion of savings=0.1667*100

Proportion of savings=16.67%

Therefore the percentage of your salary that you must save each year is 16.67%

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No

Explanation:

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30) The theme dominating global financial markets today is the complexity of risks associated with financial globalization. List
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Answer and Explanation:

The following are the examples:

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2. The monetary system i.e. international would be under scrutiny. As if there is an increase in the renminbi of chinese so the outlook of the would be varied on the currencies i.e. reserved, currency exchange, etc

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6 0
2 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
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Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

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Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

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So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

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Answer:

Y = C + I + G + NX

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S = I + G + NX

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