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Andru [333]
3 years ago
6

You want to have $5 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is

13 percent and the inflation rate is 4.4 percent. 1.) What real amount must you deposit each year to achieve your goal? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) $_______Deposit Amount
Business
1 answer:
motikmotik3 years ago
7 0

Answer: $18,128.27

Explanation:

Real interest rate = [( 1 + Nominal rate ) / ( 1 + inflation rate)] - 1

= [(1 + 13%) / ( 1 + 4.4%) ] - 1

= 8.2375478927203065134%

This is dealing with the future value of an annuity where $5,000,000 is that future value.

Future Value of an annuity = Amount * {[((1 + r )^n) - 1] / r}

5,000,000 = Amount * {[((1 + 8.2375478927203065134%% )^ 40) - 1] / 8.2375478927203065134%}

5,000,000 = Amount * 275.81229325572622843153903061969

Amount = 5,000,000/275.81229325572622843153903061969

= $18,128.27

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According to the acquisition method of accounting for business combinations, costs paid to attorneys and accountants for service
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Answer:

"charged to profit or loss"

Explanation:

According to the acquisition method, acquisition-related (transaction) costs are costs the acquirer incurs to effect a business combination. For example, the cost of the advisory, legal, accounting, valuation or consultancy fees, must not be included in the cost of the acquisition. These costs must be treated as an expense as incurred and written off to profit or loss.

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So based on the above discussion the answer to the question shall be "charged to profit or loss"

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4 years ago
ME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
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8.06

Explanation

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