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taurus [48]
3 years ago
5

6. You have 45 years left until retirement and want to retire with $4 million. Your salary is paid annually, and you will receiv

e $50,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn an annual return of 9 percent 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:
allsm [11]3 years ago
6 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

You have 45 years left until retirement and want to retire with $4 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 an annual return of 9 percent on the money you invest.

n= 45

FV= 4,000,000

i= 9% + 3%= 12%

We need to use the following formula:

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

A= annual deposit

Isolating A:

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

A= (4,000,000*0.12)/{(1.12^45)-1}= $2,945

5.89% per year.

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On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authori
uysha [10]

Answer:

1,                            Journal entries

Date    Account and explanation         Debi$       Credit$

          Treasury stock (5200*27)          140,400

           Cash                                                              140,400

           (To record purchase treasury stock)

            Cash (1,050*33)                           34,650  

            Paid in capital from sale of treasury stock    6,300

            Treasury stock (1,050*27)                               28,350

             (To record sale of treasury stock)  

              Cash (4,150*22)                             91,300

              Paid in capital from sale of            6,300

              treasury stock  

              Retained earnings                         14,450

              Treasury stock (4,150*27)                                112,050

              (To record sale of treasury stock)  

2.  Revised equity section

<u>Contributed capital</u>

Common Stock                             740,000

Paid in capital in excess of           <u>226,000</u>

par value-Common Stock

Total paid in capital                        966,000

Retained earnings                         <u> 880,000</u>

Total                                                1,846,000

Less: Treasury stock                      <u>(140,400)</u>

Total Stockholder's equity            $<u>1,705,600</u>

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2 years ago
Fiscal policy would be more effective if: a. crowding out occurred more often. b. the government could change taxes and expendit
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Answer:

B) the government could change taxes and expenditures rapidly.

Explanation:

Fiscal policy is the government's spending and taxation policies carried out to influence the country's economy. The government can carry out an expansionary fiscal policy by reducing taxes or increasing spending to try to boost the economy, or it can carry out a contractionary fiscal policy that increases taxes and reduces spending to try to cool down the economy.

Expansionary fiscal policies are carried out to try to increase total aggregate demand, but it also increases the government's deficit and national debt. The main gals of fiscal policy should be to lower unemployment rate and achieve a sustainable economic growth.

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I will say c I not shore 100%

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