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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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Alfred lost his 3-year-old camera. It cost him $150 three years ago and had a life expectancy of 6 years. Alfred has actual cash
salantis [7]

Answer:

insurance company will pay $75 to Alfred.

Explanation:

given data

Actual cost of camera = $200

Alfred cost of camera = $150

Life expectancy = 6 years

solution

we get here first Remain life of camera that is

Remain life of camera = 6 years  - 3 years

Remain life of camera = 3 years

and

now we get here current cost of the camera that is

current cost of camera = Alfred cost of camera × (Remain life of camera ÷ Life expectancy)    ........................1

put here value and we get

Current cost of camera = $150   ×   \frac{3}{6}

Current cost of camera = $75

so that insurance company will pay $75 to Alfred.

5 0
3 years ago
Assess how Wal-Mart is managing ethics and social responsability as one of thé largest corporations in the world
timofeeve [1]

Answer:

Wal-Mart has taken revolutionary steps over the years to start econ friendly activities to promote ethics and social responsibility.

Explanation:

Wal-Mart began to take initiatives to address global impacts and embraced a sustainability program. It concentrated on redoing everything, and the main centre was to be Eco-friendly. There were original and inventive techniques received by the organisation, including building a solar panel to the stores. There was likewise establishment of innovations to use less fuel and electricity.

6 0
3 years ago
An age-appropriate skill is best defined as a skill that is appropriate to the student's
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Patricia is the owner of a floral shop. a successful global candle company approached her about selling its products in her shop
Tema [17]
What could mean above is that the events that is happening to Patricia's life is an opportunity. It is an opportunity for it enables a person to do the things he or she wants with the circumstances that has been given to him or her. It could be described in the scenario above as a global company approach her into selling her products to their shop in which it could make her reach the goal that she has always wanted.
5 0
3 years ago
ma Rich purchased 100 shares of Stockits, Inc.'s $1 par value common stock from Stockits for $5 per share. Which statements are
vivado [14]

The correct options for Which statements are true regarding the effect of this transaction on Stockits' financial statements are B. Stockholders' equity on the balance sheet increases. C. The financing activities section of the statement of cash flows increases.

Equity is something invested in the company by using its owner or the sum of the entire belongings minus the sum of the company's general liabilities. E.g., common stock, additional paid-in capital, favored inventory, retained income, and the amassed different complete earnings.

For most companies, high stockholders' equity shows more stable finances and greater flexibility in case of an economic or financial downturn. information stockholders' equity is one way that buyers can learn about the monetary health of a firm.

Your question is incomplete. Please read below for the missing content.

ma Rich purchased 100 shares of Stockits, Inc.'s $1 par value common stock from Stockists for $5 per share. Which statements are true regarding the effect of this transaction on Stockits' financial statements? (Select all that apply.)

A. A gains will be reported on the income statement.

B. Stockholders' equity on the balance sheet increases.

C. The investing activities section of the statement of cash flows increases.

D. The financing activities section of the statement of cash flows increases.

E. Stockholders' equity on the balance sheet decreases.

Learn more about Equity here brainly.com/question/1957305

#SPJ1

4 0
2 years ago
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