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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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7 0
3 years ago
Five Star Manufacturing has provided the following data for the month of June. There were no beginning inventories; consequently
zubka84 [21]

Answer:

Five Star Manufacturing

The finished goods inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

$30,220

Explanation:

a) Data and Calculations:

                    Work in Process   Finished Goods  Cost of Goods Sold  Total

Direct Materials       $1,700              $6,300              $22,200         $30,200

Direct Labor            $7,780             $15,750              $55,500         $79,030

Overhead Applied $4,320               $6,840              $24,840         $36,000

Total                      $13,800            $28,890             $102,540        $145,230

Allocation of overapplied

Overhead                $840                $1,330                 $4,830           $7,000

Adjusted Total     $14,640            $30,220              $107,370       $152,230

Manufacturing overhead overapplied by $7,000

Basis of apportionment of overapplied overhead: overhead applied

                    Work in Process   Finished Goods  Cost of Goods Sold  Total

Basis ratio             0.12                     0.19                   0.69                        1

Overapplied

overhead          $840                 $1,330                 $4,830                $7,000

6 0
3 years ago
Suppose the government wants to reduce cigarette consumption to 200 billion packs per year. The government could achieve this by
irakobra [83]

The government could achieve reduction of cigarette consumption to by imposing a per-unit tax on cigarettes of 200 billion packs per year

<h3>What can Taxation achieve?</h3>

A taxation refers to compulsory levies on individuals, business by the governments on their income, operation etc.

In conclusion, apart from the revenue that tax generates for the government official, its also serves as tool for controlling consumption.

Read more about taxation

<em>brainly.com/question/25783927</em>

5 0
2 years ago
Waylon could see lina's frustration build as adam continually cut her off midsentence in their problem-solving group meeting. at
mr_godi [17]

The answer to the question is a maintenance need.

It can be said that Waylon is ensuring that the peace in the group is maintained despite personality clashes that may occur by doing certain behaviors to accommodate the team members. This is clear from how he made an effort to seek out Lina to ensure that her opinion is heard and mitigating future conflict possibilities by ensuring that she would have her chance to speak if Adam behaves in the same manner on the next meeting.

4 0
3 years ago
Financial data for Greene Company follows:
aksik [14]
The answer is d. 10.2
4 0
2 years ago
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