answer.
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
ludmilkaskok
2 months ago
6

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre

ntly have no retirement savings but plan to save an equal amount each year for the next 38 years until your retirement. How much do you need to save each year if you can earn 7.5 percent on your savings?Select one:a. $3,333.33b. $2,640.85c. $3,146.32d. $2,889.04e. $3,406.16
Business
1 answer:
arsen [3.4K]2 months ago
5 0

Answer:

The total required amount is $7,056.46

Explanation:

Given the following details:

You aim to accumulate enough savings to produce an annual cash flow of $55,000 for 25 years during retirement. How much should you save each year, assuming a return of 7.5 percent on your savings?

Final value = 55,000 * 25 = 1,375,000

Using the formula: FV = {A*[(1+i)^n-1]}/i

A represents the annual contribution.

To isolate A:

A = (FV*i)/{[(1+i)^n]-1}

A = (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

You might be interested in
Malia is a partner of a small clothing company. This week she has been hosting a group of potential investors. Several of the po
stepan [3596]

Answer:

The answer is Legal.

Explanation:

A legal issue comprises a conflict that needs to be resolved under the existing laws. When such matters are presented to a judge, there is typically a requirement for justification. This necessitates outlining the conflict using the normative and factual arguments presented by the parties involved, along with relevant consensus and/or evidence. Once the judge possesses all necessary normative and factual details, as well as their interpretation and evidentiary foundations, they can articulate the problem. This scenario contains two facets: the normative aspect refers to the overarching theme of the dispute, while the factual aspect details the specific elements of the case that provide a unique interpretative context to the general issue.

8 0
3 months ago
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s s
Nady [3600]

Response:

The yearly return on the investment in this sculpture is -4.46%.

Details:

Let PV represent the investment amount, while FV is the value after t periods.

FV = PV(1+r)^t

(1+r)^t = FV/PV

1 + r = (FV/PV)^(1/t)

r = (FV/PV)^(1/t) - 1

Here, t is the duration from 1999 to 2003, so t = 2003 - 1999 = 4 years.

FV is $10,311,500.

PV is $12,377,500.

  r = ($10,311,500/$12,377,500)^(1/4) - 1

  r = -0.0446

Consequently, his yearly rate of return on the sculpture is -4.46%.

6 0
3 months ago
Jiminy's Cricket Farm issued a 30-year, 6.3 percent semiannual bond eight years ago. The bond currently sells for 110 percent of
Scilla [3833]

La respuesta a este problema es aplicar los conceptos relacionados con la tasa de flujo de calor expresados en términos de energía. La tasa de flujo de calor se refiere a la cantidad de calor que se transfiere por unidad de tiempo en un material. Matemáticamente puede expresirse como:

Donde

k = 0.84 J/s⋅m⋅°C (La conductividad térmica del material)

Área

Longitud

= Temperatura del "reservorio caliente"

= Temperatura del "reservorio frío"Sustituyendo con nuestros valores tenemos que,[

Por lo tanto, la respuesta correcta es B.

7 0
2 months ago
Other questions:
  • Zack has two savings accounts with a total of $9,000. he withdrew 10% from one and 60% from the other to buy his girlfriend an e
    11·1 answer
  • Management's philosophy at Nike has often been that a fit body contributes to more productivity at work. Nike provides exercise
    12·1 answer
  • Prof. Finance will have $1,500,000 saved up by retirement at age 65. The retired professor expects to live 25 more years after r
    8·1 answer
  • The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $115
    12·1 answer
  • Doc's ribhouse had beginning equity of $52,000; net income of $35,000, and dividends by the company of $12,000. calculate the en
    8·1 answer
  • The estimated monthly sales of mona lisa paint-by-number sets is given by the formula q = 97e−3p2 + p, where q is the demand in
    15·1 answer
  • For many years, Senator Juliana Higdon has called for more government regulation of business. "After all," the senator said rece
    13·1 answer
  • In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex
    14·1 answer
  • Yard Mowing. Paula agreed to mow John's yard once a week for $50 per week throughout the summer. Paula, however, was having trou
    6·1 answer
  • Compute the selling price of a bottle of cleaning spray that has a cost of $2.05 and a markup of 35%. a) $2.00 b) $2.69 c) $2.77
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!