1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dominik [7]
2 years ago
7

Your sister turned 35 today, and she is planning to save $20,000 per year for retirement, with the first deposit to be made one

year from today. She will invest in a mutual fund that's expected to provide a return of 7% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year.
Business
1 answer:
Elenna [48]2 years ago
8 0

Answer:

She can spend $162,114.58 at the end of each period before she can exhaust the amount.

Explanation:

She will save up to $1,889,215.73 by saving $20,000 per year for 30 years, making the first deposit at the end of a year from today.

FV (Future Value) $1,889,215.73

PV (Present Value) $248,180.82

N (Number of Periods) 30.000

I/Y (Interest Rate) 7.000%

PMT (Periodic Payment) $20,000.00

Starting Investment $0.00

Total Principal $600,000.00

Total Interest $1,289,215.73

She can can retrieve $162,114.58 at the end of each period to reach the future value of $0.00.

FV (Future Value) $-0.00

PV (Present Value) $-0.00

N (Number of Periods) 25.000

I/Y (Interest Rate) 7.000%

PMT (Periodic Payment) $-162,114.58

Starting Investment $1,889,215.73

Total Principal $-2,163,648.74

Total Interest $2,163,648.74

You might be interested in
Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000A
Ulleksa [173]

Answer:

B.) $11.90

Explanation:

Predetermined manufacturing overhead rate are based on the estimates made by the company.

So the calculation should be:

Estimated MOH of $238,000<em> divided by</em> Estimated Machine Hours of 20,000.

Giving us the result of $11.90

(238,000 / 20,000 = 11.90)

7 0
3 years ago
In your own words, describe how to optimize a function given a set of constraints
Anni [7]
One method on optimizing a function is by finding the absolute extrema. It is done by having the optimal values continuous including the including the endpoints. I hope my answer has come to your help. God bless and have a nice day ahead!<span>
</span>
3 0
2 years ago
The price level in the country is determined by ______ and _______.
Usimov [2.4K]
The answers are supply and demand.
6 0
3 years ago
Wages salaries expense is equal towhat?
Sergio039 [100]
Accounts such as Wages and Salaries Expense, Wages Expense, and Salaries Expense are used to record the gross wages and salaries earned by employees during the accounting period. Gross wages and salaries means the amount before payroll taxes and other with holdings. 
hope this helps
6 0
3 years ago
A bear market is distinguished by ________.
kiruha [24]
<span>A bear market is distinguished by a declining stock market and decreasing investor confidence. A bear market is when security prices fall and the stock market starts to take a downward turn. The market tries to become self-sustaining so investors start to sell off their stocks and securities. </span>
8 0
3 years ago
Read 2 more answers
Other questions:
  • Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of Ja
    13·1 answer
  • Ceradyne, Inc. has decided to discontinue manufacturing its Quantum model credit card reader. Currently the company has a number
    5·1 answer
  • You have an outstanding balance on your credit card of $10,000. You can pay off the balance if you make 36 monthly payments of $
    13·1 answer
  • The big dilemma an acquisition-minded firm faces is whether to
    12·2 answers
  • LIBOR is A. a resource used in production. B. an interest rate paid on Eurodollar loans in the London market. C. an interest rat
    8·1 answer
  • Problem 1, The following data pertain to a single department for the month of October for ABC Company.
    11·1 answer
  • Two different manufacturing processes are being considered for making a new product. The first process is less​ capital-intensiv
    8·1 answer
  • Hi i needa gf im 16 im a kind loving caring person anyone 13 through 17
    7·1 answer
  • Freeze Ice Cream Shop sells its specialty shakes for $3.50 each. In the summer months, the shop typically sells 200 shakes a day
    15·1 answer
  • During which stage of team development is there a high dependence on the leader for guidance and direction as there will be litt
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!