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olganol [36]
3 years ago
10

g Jill has a balance of $866,000 in her retirement savings account. She expects to retire in 8 years. She will not save any addi

tional money until she retires, but what she has in savings now will earn 9% for the next 8 years. Bob has a balance of $482,000 in his retirement savings and he also wants to retire 8 years from now. He plans to save money every year for the next 8 years so that he will have exactly as much money as Jill does 8 years from now. If he earns the same rate on his savings as Jill, how much will he have to save each year for 8 years to catch up with Jill
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

$69,378.96

Explanation:

The first step is to determine the future value of Jill's balance

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$866,000(1.09)^8 = $1,725,559.25

the second step is to determine the future value of the balance in Bob's account

$482,000(1.09)^8 = $960,415.19

The difference between Jill and Bob's future value amount is 765,144.06. this has to be the future value of bob's yearly savings

yearly savings = 765,144.06.  / annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

(1.09^8 - 1) / 0.09 = 11.028474

765,144.06.  /  11.028474 = $69,378.96

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Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is $100, the contribution margin ratio is 25
leonid [27]

Answer:

break even point in unit =5440 units

break even point in sales = $544000

total sale = $680000

Explanation:

given data

Current operating income = $34,000

Selling price = $100

margin ratio = 25%

to find out

Bay Area Cycle’s break even point in units and total sales dollars

solution

we get here first break even point that is express as

break even point in unit =  \frac{fixed\ cost}{contribution\ per\ unit}   ..................1

break even point in unit =  \frac{136000}{100*0.25}

break even point in unit =5440 units

so

break even point in sales =  \frac{fixed\ cost}{margin\ ratio}   ..................2

break even point in sales = \frac{136000}{0.25}

break even point in sales = $544000

and

total sales will be

total sale =  \frac{operating\ income+ fixed\ expense}{margin\ ratio}   ..................3

total sale =  \frac{34000+136000}{0.25}

total sale = $680000

3 0
3 years ago
Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
kondor19780726 [428]

Answer: True

Explanation:

Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.

It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.

3 0
2 years ago
The competitive equilibrium rent in a standard two bedroom apartment in lawrence (a city) is $600. now suppose the city council
Mekhanik [1.2K]
<span>Setting a rent control price ceiling will cause the same impact as any other price ceiling that is below the market equilibrium price: it will create a shortage in the market. At the price equilibrium of $600, the number of renters would exactly meet the number of available 2 bedroom apartments. However, with this fixed price ceiling, the position along the demand curve will shift to one of higher demand, with no analogous change in the supply curve. Thus there will be more renters than can be supported, and renters will have to look for alternatives and substitutes.</span>
8 0
3 years ago
Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000
jarptica [38.1K]

Answer:

e.$8,000 of fixed costs and $108,000 of variable costs.

Explanation:

Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.

The cost per unit to produce 15,000 units is:

C =\frac{\$90,000}{15,000}\\C=\$6/unit

Assuming a new production volume of 18,000 units, budgeted variable costs are:

V_c=\$6*18,000= \$108,000

The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.

8 0
3 years ago
Spelling Corporation has eliminated the need for Finished Goods Inventory as it manufactures customer orders as they are receive
Marizza181 [45]

Answer:

Just-in-time inventory method

Explanation:

Just-in-time inventory method accurately forecasts demand for a good or service, so that it requests only for inventory it uses in production process. This method is aimed at reducing inventory storage cost and other expenses associated with having excess inventory on hand.

This method results in smooth operation at reduced cost. To be successful the business must accurately predict demand, and react fast to meet supply obligations.

6 0
3 years ago
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