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
xenn [34]
3 years ago
7

Barry, age 45, works for an advertising company, where he earns $75,000. Barry would like to retire at age 65. He earns 9% on hi

s investments, and inflation has averaged only 3% annually. Assuming he is expected to live until age 90 and he has a wage replacement ratio of 80% (in today's dollars), how much will Barry need to have accumulated when he retires to maintain his current lifestyle during retirement
Business
1 answer:
kakasveta [241]3 years ago
7 0

Answer:

$1,064,440.24

Explanation

Age = 45

Retirement = 65 (Retires after 20 years)

Death = 90 (After 25 years of retirement life)

Inflation = 3%

Rate of Return = 9%

Annual Salary  = $75,000

Wage replacement ratio = 80%

Retirement Income = $75,000 * 80% = $60,000

Amount required in future to match the current purchasing power

Inflation effect = $60,000 * (1 + 3%)^20

Inflation effect = $60,000 * (1.03)^20

Inflation effect = $60,000 * 1.80611123467

Inflation effect = $108366.6740802

Inflation effect = $108,366.67. ($108,366.67 is needed to Match Purchasing power of $60,000 in 20 Years)

Total amount needed at the age of 65

i = 9%, Fv = 0, Nper = 25, PMT = -$108,366.67

= PV(9%, 33, -108,366.67, 0)

= 1064440.243

= $1,064,440.24

So, Barry need to accumulated $1,064,440.24 as of the day he retires to adequately provide for his retirement lifestyle.

You might be interested in
Agile project management involves ____ whereas traditional project management involves _______. Multiple Choice known and stable
Ainat [17]

Answer:

For comprehension purposes, I would write the question again with options attached below:

Agile project management involves ____ whereas traditional project management involves _______. Multiple Choice

a. known and stable scope, unknown requirements

b. high certainty, projects with unstable scope

c. projects with high predictability, project with unknown or unstable requirements

d. iterative and incremental delivery, upfront planning with high predictability

e. high uncertainty, projects with unknown requirements

The correct answer is option d. (iterative and incremental delivery, upfront planning with high predictability)

So, Agile project management involves <u>iterative and incremental delivery </u>whereas traditional project management involves <u>upfront planning with high predictability</u>.

Explanation:

Agile project management involves iterative and incremental delivery as Agile project management allows making changes to the product which then opens ways for iteration. Agile life cycles are composed of several iterations because of changes that might arise due to feedback during the production process of the project.

Traditional project management is highly predictable and it doesn't give room for changes as project cycles and stages are planned ahead. It's a rigid process.

5 0
2 years ago
Answer the question on the basis of the following list of assets:1. Large-denominated ($100,000 and more) time deposits2. Nonche
ANTONII [103]

Answer: Items 2, 3, 4, 6, 7, and 8

Explanation:

The M2 definition of money includes M1 money and then some other types of instruments that are quite highly liquid and so can be converted to liquid cash quickly if needed.

M2 includes:

   2. Noncheckable savings deposits

   3. Currency (coins and paper money) in circulation

   4. Small-denominated (less than $100,000) time deposits  

   6. Checkable deposits

   7. Money market deposit accounts

   8. Money market mutual fund balances held by individuals

6 0
3 years ago
An activity that is unique to government
vodomira [7]
<span>Please add answer options.</span>
7 0
3 years ago
Ashley is single and lives with Barney, her boyfriend, and Candy, his 8-year-old daughter. Ashley paid all of the support for he
julsineya [31]

Answer:

Ashley may not claim Candy as her dependant even if other requirements are met.

Explanation:

Ashley is single and lives with Barney, her boyfriend, and Candy, his 8-year-old daughter. Ashley paid all of the support for her household in 2018. Barney has earned income of $2,500 and had income tax withheld from his wages. He has no other income and is not required to file an income tax return. With one qualifying child, Barney may claim an earned income credit. Barney files an income tax return solely to obtain a refund of withheld income taxes and does not claim EIC. Because Barney does not have a filing requirement and filed only to obtain a refund of withheld income taxes, Candy is not considered the qualifying child of Barney or any other taxpayer

Based on the explanation given Ashley cannot claim Candy as an independent because of the tax payer rule. If other requirements are met, Ashley cannot claim Candy as dependent because the girl in question isn't her child . Moreover, Candy is the full responsibility of Barney. Candy is under Barney's care and is solely required by law to take care of her.

4 0
3 years ago
Carla Vista Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the curr
sergey [27]

Answer:

Contribution Margin = 25.94%

Explanation:

<em>Contribution Margin = Contribution / Sales</em>

<u>Calculation of Contribution per unit :</u>

<em>Contribution = Sales less Variable Cost</em>

Sales price                                                                         $41.17

Less Variable Costs :

Variable cost of goods sold (13.17  + (13.17   × 15%))        ($15,15)

Variable selling expenses                                               ($11.77 )

Variable administrative expenses                                   ($4.17)

Contribution                                                                     $10.68

Therefore, Contribution Margin = $10.68 / $41.17 × 100 = 25.94%

5 0
3 years ago
Other questions:
  • You work as a cashier for a bookstore and earn $6 per hour. you also baby sit and earn $6 per hour. you want to earn at least $6
    10·1 answer
  • Assume that initially a country has a loanable funds supply curve of S1. Now, imagine that interest rates across the country inc
    10·1 answer
  • • Compare and contrast the characteristics of the academic and practitioners research communities and explain which audience you
    11·1 answer
  • ____ refers to the statistical characteristics of a group or population such as age, gender, and education level.
    9·1 answer
  • Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl
    13·1 answer
  • brian earned $14,000 last spring giving swimming lessons. He invested part of the money at 5% simple interest &amp; the rest at
    9·1 answer
  • How can the business sector contribute more positively to the economy​
    8·1 answer
  • What is it called when you are able to touch and feel a product?
    10·1 answer
  • ______ is a tool that reminds managers to look at several distinct categories in the macro environment.
    13·1 answer
  • What was the growth rate of per capita income in india on the eve of independence.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!