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creativ13 [48]
3 years ago
6

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

d $250 per month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period
Business
1 answer:
Snezhnost [94]3 years ago
5 0

Answer:

Withdrawal each month = $11,379.01

Explanation:

As per the data given in the question,

Value of investment at the time of retirement

= 750 × (((1+(10%÷12))^(30×12) -1) ÷ (10%÷12)) + 250 × (((1+ (6% ÷ 12))^(30×12) -1) ÷ (6%÷12))

= $1,946,494.70

So, we can calculate the withdrawal of each month by using following formula:

Withdrawal each month = $1,946,494.70 ÷ ((1-(1+(5% ÷ 12))^(-25×12)) ÷ (5% ÷ 12))

= $11,379.01

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Suppose that government officials have set an emissions tax to reduce pollution. Assume that the optimal tax would be $1,500, bu
Mariulka [41]

Answer: there will be too much pollution

Explanation:

From the question, we are informed that government officials have set an emissions tax to reduce pollution and that the optimal tax should have been $1,500 but government officials have set the tax equal to $500.

It should be noted that due to the fact that the optimal tax has been set below the equilibrium, this will lead to a rise in pollution as the people will be aware that they're paying less than the optimal level which will lead to more pollution. An increase in the optimal tax will have help in reducing the pollution.

8 0
3 years ago
Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities wil
Irina-Kira [14]

Answer:

Orange Co.'s budget will include the cost of production, which is made up of raw materials, direct labor, and manufacturing overhead.  The above cost of production and the accompanying items will not be found in the budget of Pineapple Company.  The latter's budget will focus on purchase of goods for sale (instead of raw materials) and inventories of finished goods (instead of raw materials and work in process).  Orange Co. determines its product cost per unit from the cost of production divided by the quantity produced.  Pineapple Company's product cost is based on the purchase price of goods, which includes the manufacturer's profit.

Explanation:

The operations and accounting for the cost of production of Orange Co. will be different from Pineapple Company's.  The difference is a reflection of their statuses as manufacturer and merchandiser respectively.  Orange Co. manufactures and sells goods while Pineapple Company sell manufactured goods.

8 0
3 years ago
Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for
NikAS [45]

The joint cost allocated to product M1 using the net realizable value is $198,095.

<h3>What is the joint cost?</h3>

Joint costs refer to the common production costs (direct materials, direct labor, and overheads) incurred to produce two or more products during the same process.

Based on this, the different products have a common costs that should be allocated based on some criteria.

<h3>Data and Calculations:</h3>

                                                M1              M2              B1           Total

Units produced                  25,400       13,700       10,000       49,100

Allocated joint costs                ?                 ?                ?      $ 375,000

Sales value at split-off $ 402,000  $ 268,000  $ 91,000 $ 761,000

Joint cost of M1 using the net realizable value = $198,095 ($402,000/$761,000 x $375,000)

Thus, the joint cost allocated to product M1 using the net realizable value is $198,095.

Learn more about joint costs at brainly.com/question/25408525

#SPJ1

3 0
2 years ago
TRUE OR FALSE ? WHY ? HELP ME
nikdorinn [45]

7. True

8. False

9. False

Must click thanks and mark brainliest

Sorry if wrong.

6 0
2 years ago
During a drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less wate
AlladinOne [14]

Answer:

De-marketing.

Explanation:

De-marketing is a type of marketing used to decrease or slow down the demand for products that are in short supply. It is can be an effort made through advertisements or campaigns that encourages the public to limit the consumption of a product, as at a time of shortage.

De-marketing, during drought, can be deployed to encourage consumers to use less water.

5 0
3 years ago
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