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
creativ13 [48]
4 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]4 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

You might be interested in
What are the four requirement of valid contract
timurjin [86]

Four requirements for a valid contract are an offer, acceptance by the other party of the offer, a mutual agreement or meeting of the minds of the contracting parties and a valid consideration.

3 0
4 years ago
China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt forgiveness was zero in 2012 (i
Pie

Answer:

The correct asnwer is $-214 billion.

Explanation:

A surplus occurs when an account exceeds the credit after having paid all its debts and obligations.

As the example says, assuming that China’s net debt forgiveness was zero in 2012, then the net balance of China's financial account balance would be -214 billion.

This means that China would be facing a deficit.

A defit means that more money comes out of our company's account than it enters.

Which causes China to have a<u> negative balance account.</u>

4 0
3 years ago
You have a loan outstanding. It requires making three annual payments at the end of the next three years of $3000 each. Your ban
Oksana_A [137]

Answer:

The final payment would be of amount $9000

Explanation:

The keywords of the question state that the bank needs an equal amount of money by both of the payment procedures. Hence, no matter which payment method I choose on the outstanding loan, the bank would need a sum of 3x3000 = $9000

5 0
3 years ago
___ is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, pr
pentagon [3]

Answer:

Product market expansion grid

Explanation:

Product market expansion grid -  

It is used to plan for the company , when the company is indeed of expanding , is referred to as Product market expansion grid .  

The strategy or information required for the company to increase sale of the goods and services or introducing a new product in the upcoming market , uses this plan.  

Hence , from the given information of the question,

The correct term is  Product market expansion grid .

8 0
3 years ago
Assume oil prices rise in the United States, generating concerns that inflation may increase. If the Fed wishes to ensure that i
miskamm [114]

If the Fed wishes to ensure that inflation does not get out of hand, the Fed could lower the <em>target money supply growth rate</em>.

Inflation is when the general price levels in an economy increases persistently overtime.  The policy tools that the Fed can use to control general price levels in the economy is known as monetary policy.

There are two types of monetary policy :

  1. Expansionary monetary policy : these are steps taken by the Fed to increase the supply of money in the economy. These steps include reducing the <em>target Funds rate, decreasing the reserve requirements and carrying out open market purchase</em>.
  2. Contractionary monetary policy : these are steps taken to reduce the money supply in the economy. These steps include reducing the <em>target money supply growth rate and carrying out an open market sales. </em>

To learn more about monetary policy, please check: brainly.com/question/15566475?referrer=searchResults

7 0
2 years ago
Other questions:
  • An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS deprec
    13·1 answer
  • Question 9 you are doing some comparison shopping. five stores offer the product you want at basically the same price but with d
    14·1 answer
  • Which of the following is an entrepreneur?
    15·1 answer
  • Strict product liability is the doctrine that the seller of a product has legal responsibilities to compensate the user of that
    6·1 answer
  • The president and founder of a high-tech start-up firm contacted the vice president of HR at the company because she wanted to b
    12·2 answers
  • What are negative effects of importing goods
    14·2 answers
  • The Greek Connection had sales of $32 million in 2009, and a cost of goods sold of $20 million. A simplified balance sheet for t
    15·1 answer
  • Why does the tape measure hook move?​
    5·1 answer
  • Logistics means creating an efficient assembly line.<br> A. <br> True<br> B. <br> False
    14·2 answers
  • The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!