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xenn [34]
2 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]2 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.

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Answer:

<em>Product-bundle pricing</em>

Explanation:

<em>Companies sell a bundle or collection of products and services at a discounted price in a bundle-pricing than they would charge if all of them were bought individually by the consumer.</em>

One can increase their profit by following a bundle pricing strategy by using a discount to induce or trigger customers to buy more than they would otherwise have.

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1. In the problem solving process, which step comes before Take Action?
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2 years ago
A company begins the quarter with $50 in supplies. They purchase an additional $100 of supplies. At the end of the quarter, they
Zinaida [17]

The company used $125 supplies  during the quarter.

The quantity of goods or service that a company has to offer its customers at any one time is defined as supply. For a real, brick-and-mortar store, this refers to the inventory that a company has on its premises and in warehouses that it may sell to clients.

Supplies and business services are temporary commodities and services that aid in the development or management of the completed product.

The supplies used during the quarter is computed below:

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Beginning supplies                    $50

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Total supplies available    $150

Less: Ending supplies            $25

Supplies during the quarter    $125

Therefore, the supplies during the quarter is $125.

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5 0
2 years ago
Research from the 1970s to the 1990s found that over 90 percent of a fund's returns over time is explained by
tamaranim1 [39]

Answer: Asset allocation

Explanation:

Research from the 1970s to the 1990s found that over 90 percent of a fund's returns over time is explained by asset allocation.

It should be noted that asset allocation is simply referred to as an investment portfolio technique which balance risk through the division of assets among major categories like stocks, bonds, cash, real estate, and derivatives.

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Answer:

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Explanation:

5 0
2 years ago
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