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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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Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is
dexar [7]

Answer:

Repetitive layout

Explanation:

In simple words,  Product-oriented layouts can be understood as the model that is  grouped around items with equivalent high low commodities or families. Consumer demand is strong enough to warrant the high investment in specialized equipment in such a design. The commodity is standardized or entering a life cycle period that justifies investments in advanced equipment.

3 0
2 years ago
A 30-year zero coupon bond with a face value of $5,000 is currently selling for $1,156.88 and has a market rate of interest of 5
daser333 [38]

Answer:

Price will increase by $277.58

Explanation:

Market rate of Interest of a zero coupon bond can be determined by following formula

Market Rate of Interest = [ ( F / P )^(1/30) ] - 1

4.25% = [ ( $5000 / P )^(1/30) ] - 1

0.0425 + 1 = ( $5000 / P )^1/30

( 1.0425 )^30 = (( $5000 / P )^1/30)^30

3.4856 = $5000 / P

P = $5,000 / 3.4856

P = $1,434.46

Now Calculate the change in Price

Change in price = $1,434.46 - $1,156.88 = $277.58

Price will increase by $277.58

5 0
3 years ago
Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.
Romashka [77]

Answer:

1. Increasing

2. A. The elasticity of private saving with respect to the after-tax real interest rate

B. The response of private saving to changes in the government budget deficit

C. The elasticity of investment with respect to the interest rate

Explanation:

1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.

A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.

2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.

The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.

The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.

Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.

7 0
2 years ago
What is the meant byTQM
ch4aika [34]
TQM is Total Quality Management, it's describe as a management approach to long-terms success for customer service or satisfaction.    
5 0
2 years ago
Read 2 more answers
After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its ext
marta [7]

Answer:

Target sales revenue = $7,830,000

Explanation:

given data

target price = $270

annual target sales volume = 29,000

target operating income = 40%

to find out

Target sales revenue

solution

we will get here Target sales revenue that is express as

Target sales revenue =  target price × annual target sales volume   .................1

put here value we get

Target sales revenue = $270 × 29000

Target sales revenue = $7,830,000

6 0
3 years ago
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