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Effectus [21]
2 years ago
14

You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is

10 percent and the inflation rate is 4.8 percent. What real amount must you deposit each year to achieve your goal
Business
1 answer:
VMariaS [17]2 years ago
6 0

Answer:

Annual deposit= $23,647.9

Explanation:

Giving the following information:

Future value (FV)= 3,000,000

Numer of periods (n)= 40 years

Nominal rate= 10%

Inflation rate= 4.8%

<u>To simplify calculations, we will calculate the real interest rate by deducting from the nominal interest rate the inflation rate:</u>

Real interest rate= 0.1 - 0.048

Real interest rate= 0.052

<u>Now, to calculate the annual deposit, we need to use the following formula:</u>

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

A= annual deposit

Isolating A:

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

A= (3,000,000*0.052) / [(1.052^40) - 1]

A= $23,647.9

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Two power plants provide power to Chapel Hill residents: plant UNC and plant Duke. Both plants burn coal to produce electricity,
Sveta_85 [38]

Answer:

a. The socially efficient levels of abatement for UNC power plant is 10.

Explanation:

Note: See the attached Microsoft word file for the calculations of the anwers above.

7 0
3 years ago
a. The consumption schedule directly relates consumption to saving. b. consumption to the level of disposable income. c. disposa
V125BC [204]

Answer:

CONSUMPTION TO THE LEVEL OF DISPOSABLE INCOME

Explanation:

It typically measures the aggregate amount of disposable income of a household in comparison to their consumption. Two measurements are used I.e. Avetage Propensity to Consume (APC) which is obtained by dividing consumption by income and Marginal Propensity to Consume (MPC) which is the ratio of each individual dollar of household income spent on consumption.

7 0
3 years ago
When janice went to work as a hair stylist in rick's beauty shop, she entered into an agreement with rick whereby if she left sh
ASHA 777 [7]

<span>The question is incomplete, here is the complete question which I previously came across;</span>

When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick, whereby, if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as?


The answer is, the agreement Rick and Janice entered into is referred to as "<span>covenant not to compete".</span>

<span>
</span>

It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

3 0
3 years ago
13. Which of the following is NOT used to describe the state of an economy?
Anni [7]

Answer:C.TINSTAAFL Rating

Explanation:

7 0
4 years ago
Shelton, Inc., has sales of $20 million, total assets of $18.2 million, and total debt of $9.1 million. Assume the profit margin
Verizon [17]

Answer:

$1,800,000

Explanation:

Shelton incorporation has sales of $20,000,000

Total assets is $18.2 million

Total debt is $9.1 million

Profit margin is 9%

Therefore the company net income can be calculated as follows.

= sales × profit margin

= 20,000,000 × 9/100

= 20,000,000 × 0.09

= 1,800,000

Hence the company net income us $1,800,000

3 0
3 years ago
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