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Anna007 [38]
3 years ago
10

Your uncle just won the weekly lottery, receiving $375,000, which he invested at a 7.5% annual rate. He now has decided to retir

e, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative? (Hint: Round down to the nearest whole number.)
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

22

Explanation:

Calculation to determine the maximum number of whole payments that can be withdrawn

Based on the information given we would be using financial calculator to determine the maximum number of whole payments that can be withdrawn which represent N

PV -$375,000

PMT $35,000

I 7.50% Annual rate

FV $0

N ?

Hence;

N=22

Therefore the maximum number of whole payment that can be withdrawn will be 22

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Answer:

$158,730

Explanation:

Mario incoporation started the year with a net fixed assets of $75,300

At the end of the year the net fixed assets was $96,700

The depreciation expense is $13,270

Therefore the company's net capital spending for the year can be calculated as follows

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3 years ago
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Answer:

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Explanation:

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I believe the correct answer among the choices is:

b) They do not capture most nonmarket economic activity

 

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