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Hitman42 [59]
3 years ago
5

How much would howard steele need to invest today so that he may withdraw $12,000 each year for the next 20 years, assuming a ra

te of 8% compounded annually? (use the tables in the handbook.) $117,817.20 $454,144.00 $112,817.20 $549,144 none of these?

Business
2 answers:
Ne4ueva [31]3 years ago
7 0

Answer:

$117,817.20.  

Explanation:

We need to get how much would Howard Steele need to invest today so that he may withdraw $12,000 each year for the next 20 years, assuming a rate of 8% compounded annually. The annual withdrawal target is $12000 multiply by the PVIFA (8%, 20) which is equal to 9, 81810 .

For the target period the amount that need to be invested today is $117,817.20.  

Please also refer to the  attachment

mojhsa [17]3 years ago
6 0
The present value of money, P, and the annuity can be related through the equation,
 
     P = A x ((1 - (1 + r)⁻ⁿ) / r)

where A is the periodic payment, r is the interest rate, and n is the number of years. Substituting the known values to the equation,

   P = (12,000) x ((1 - (1 + 0.08)⁻²⁰) / 0.08)

    P = $117,817.77

<em>ANSWER: $117,817.77</em>
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Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 12 percent a
aalyn [17]

Answer:

Idol Staff, Rail Haul, Poker-R-Us

Explanation:

The standard deviation of a stock is a measure of the volatility of the stock or simply put, a measure of risk of the stock.

The idea of using standard deviation as a measure of stock risk is in the relation of the stock to its returns.

The farther the standard deviation is from the revenue, the more risky or at risk the stock is.

From the above question, Idol staff has the highest level of risk of 20% (i.e 35-15). Next up is Rail Haul with a risk level of 13% (i.e 25-12). the stock with tthe lowest risk level is Poker-R-Us with 11% (i.e 20-9).

Cheers.

3 0
3 years ago
Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces is:________
Volgvan

Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces <u>downward-sloping demand curves</u>.

A monopolistic market is a theoretical situation that describes a marketplace in which only one agency might also provide products and services to the public. A monopolistic market is the other of a perfectly competitive marketplace, in which an endless variety of companies function.

Monopolistic opposition exists while many businesses offer competing products or services which might be similar, but not best, substitutes. The barriers to access in a monopolistic competitive industry are low, and the choices of anyone firm do now not directly have an effect on its competition.

A monopoly has management over the supply of the product but though it can are seeking to influence the demand, it does not have management over it. In truth, a monopoly has to make a preference. it may set the price, but then it has to just accept the extent of income, consumers is prepared to buy at that fee.

Learn more about monopoly here: brainly.com/question/13113415

#SPJ4

5 0
1 year ago
a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects
lidiya [134]

If the publisher actually sells 1300 textbooks:

  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

  • A. the publisher will lose money on the sale of the textbooks.
  • B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
  • D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

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3 0
1 year ago
Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction
Reika [66]

Answer:

$4,775,565.49

Explanation:

The computation of the selling price of the bond is shown below:

Particulars                  Amount PV factor 6%       Present value

Semi-annual interest $216,209 19.60044    $4,237,791.53

Principal                         $3,088,700     0.174110131  $537,773.96

Total                                                       $4,775,565.49

Working notes

Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12

PV factor 3%:    

Semi-annual interest 13.76483115      = {(1 - (1.06)^-30) ÷ 0.06 }

Principal 0.174110131  = {1 ÷ 1.03^30}

6 0
3 years ago
Could delta implement self-tagging, whereby passengers put destination tags on their own bags, and would that help the baggage p
Cloud [144]
<span>Delta could implement self tagging whereby passengers could put destination tags on their own bags.This system would prevent theft by bag handlers who indulge in theft of expensive items like laptops,.cell phone etc.Due to correct tagging by passengers themselves bags are likely to reach their destination safely.</span>
8 0
4 years ago
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