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2 years ago

If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement?

1 answer:

8 0

The logic behind saving for retirement is that the earlier one begins saving for retirement, the lesser amount they will have to save monthly. From the graph given, the answer to how much more you need to invest per month to have $1M at retirement is;

$140

Assuming a 6% investment on return, the individual will have to save $360 monthly to have $1,000,000 at the retirement age of 67.

If he, however, waits till the age of 25 to begin saving, he will have to save $500 which is $140 more than he would have saved from the age of 20.

So, to save less per month, you need to start at an early age.

Learn more here:

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Personal education background?

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Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her busine

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Answer: Undercapitalization

Explanation:

Undercapitalization is defined as the situation where a person or entity of any kind does not have sufficient funds or capital to run their business and pay the costs it has. This type of situation usually occurs when the business is not selling the necessary amount of products or services to generate the amount of income necessary to meet all the payments it has.

When an entity or business is undercapitalization, in many cases they have had to take measures such as downsizing, fewer materials to create the product, or ultimately, if none of this works, having to close the business.

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3 years ago

National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports

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Answer:

A. National income must equal domestic product.

True.

Explanation:

National Income is the total value of goods and services produced in a country during a financial period. It is total income from a country's economic activities.

Domestic product is monetary value of all economic activities of a country during a period.

National Income is sum of Investments, Savings, Government expenditures and net exports. National Income equals the domestic products of a country. The equation is as follows:

C + I + G + (X - IM) = DI + NT.

The statement given is true. Disposable income equals the saving plus consumption. The excess of disposable income which is not consumed is saved. Sum of saving and consumption must equal Disposable income in an economy.

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3 years ago

A business rents bicycles and in-line skates. Bicycle rentals cost $25 per day, and in-line skate rentals cost $20 per day. The

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Answer:

25 b+20 s=455...equation 1

b+s=20...equation 2, where b and s are the number of bicycle and in-line skate rentals per day.

b. The business had 11 bicycle rentals and 9 in-line skate rentals.

Explanation:

Step 1: Determine an equation for total revenue today

Since the business rents bicycles and in-line skates, the total revenue will be as a result of amount received in revenue from renting the bicycles and in-line skates. This can be expressed as shown;

T=(B×b)+(S×s)

where;

T=total revenue

B=bicycle rental cost per day

b=number of bicycles

S=in-line skate rental cost per day

s=number of in-line skates

In our case;

T=$455

B=$25 per day

b=unknown

S=$20 per day

s=unknown

Replacing;

(25×b)+(20×s)=455

25 b+20 s=455...equation 1

Step 2: Determine an equation for total rentals today

The equation for the total number of rentals is;

R=b+s

where;

R=total number of rentals today

b=number of bicycles

s=number of in-line skates

In our case;

R=20

b=unknown

s=unknown

Replacing;

b+s=20...equation 2

Step 3: Combine equation 1 and 2 ans solve simultaneously

1(25 b+20 s=455), multiplying equation 1 by 1=25 b+20 s=455

20(b+s=20), multiply equation 2 by 20=20 b+20 s=400

25 b+20 s=455

20 b+20 s=400

5 b+0 s=55

(5 b)/5=55/5=11

b=11, replace the value for b in equation 2 and solve;

(20×11)+20 s=400

220+20 s=400

20 s=400-220=180

20 s=180

s=(180/20)=9

The business had 11 bicycle rentals and 9 in-line skate rentals.

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3 years ago

This year, Mesa Inc.’s before-tax income was $11,252,000. It paid $529,000 income tax to Minnesota and $451,000 income tax to Il

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Answer:

Before-tax income $ 11,252,000

Less: Deduction for state income tax(529000+451000) $ 980,000

Taxable Income $ 10,272,500

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Mesa’s combined tax rate

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Explanation:

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3 years ago