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lozanna [386]
2 years ago
9

A worker wants to set aside some money for retirement, hoping to live off the interest income. If the interest rate is 10% and t

he worker wishes to draw interest of $50,000 per year, how much should the worker save before retirement? a) 50,000,000 b) 1,000,000 c) 10,000,000 d) 500,000
Business
1 answer:
Shkiper50 [21]2 years ago
5 0

Answer:

d) 500,000

Explanation:

The amount that the worker is expected to save before retirement is the present value of the expected annual withdrawal using the interest rate of 10% as the discount rate:

savings balance at retirement=yearly cash withdrawal/interest rate

yearly cash withdrawal=$50,000

interest rate=10%

savings balance at retirement=$50,000/10%

savings balance at retirement$500,000  

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Plz, help ASAP!!!!
chubhunter [2.5K]

Answer:

The incorrect statement is letter "D": Saving can only be done in person. Investing can be done both in person and online.

Explanation:

There are several differences between saving and investing. Both of them have the potential to grow capital over a specific period. While saving is beneficial in the short run, investment is in the long run.  

Though, saving money implies depositing it in an account to make a profit out of the annual interest rate offered by banks. <em>The money can be deposited in person, through wire transfers or online transfers between accounts</em>. Investing is characterized by risking money through acquiring assets such as stocks, bonds, or mutual funds. That money can be provided by the investor in a meeting with the people in charge of managing the money or through online brokers.

6 0
3 years ago
If employees are told that budgets must be cut by 10 percent, they may automatically assume that 10 percent of employees will lo
Mandarinka [93]

Answer: This tendency to make assumptions is referred to as CLOSURE.

Explanation: CLOSURE is defined as the experience of an emotional conclusion usually to a difficult period. This is usually done bearing in mind that the experience is open to more than one meaning, interpretation or explanation. In this case, the information given to the employees is a polysemy/ambiguous making their assumptions referred to as closure.

7 0
3 years ago
In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their
damaskus [11]

Answer:

The correct answer is d) A deduction from net income in determining cash flows from operating activities.

Explanation:

To get net cash flow using the indirect method we must make adjustments to the net income.

It depends on the account if it is added or subtracted to net income.

In this case, an increase in available-for-sale securities due to an increase in their fair value should be reported as a deduction from net income.

4 0
2 years ago
Quintina decided to increase the deduction percentage of her federal income tax rate from 14% to 16%. Quintina’s gross pay per m
lora16 [44]
Since you gave no table,

her federal income in 14 % Rate = 14 % x 2,100
                                                         = $ 294

Her federal tax in 16 % Rate = 16 % x 2,100
                                                 =  $ 336
4 0
3 years ago
Read 2 more answers
Emma is planning how much she needs to make next week. She can only work 25 hours, and she needs to make a total
Mademuasel [1]

Answer:

$24.8 per hour.

Explanation:

Emma can only work for 25 hours in a week.

Total she needs to make =$620.

So, each hour she has to make sales worth =620/25 =$24.8

3 0
2 years ago
Read 2 more answers
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