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dexar [7]
2 years ago
14

Mary's 25th birthday is today, and she hopes to retire on her 65th birthday. She has determined that she will need to have $3,00

0,000 in her retirement savings account in order to live comfortably. Mary currently has no retirement savings, and her investments will earn 4% annually.
a. How much must she deposit into her account at the end of each of the next 40 years to meet her retirement savings goal?
Business
1 answer:
Marina86 [1]2 years ago
6 0

Answer:

Annual deposit= $31,570.47

Explanation:

Giving the following information:

She has determined that she will need to have $3,000,000 in her retirement savings account.

Her investments will earn 4% annually.

To calculate the annual deposit we need to use the following formula:

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

A= annual deposit

Isolating A:

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

A= (3,000,000*0.04)/[(1.04^40)-1]= $31,570.47

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Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise):A building wi
-BARSIC- [3]

Answer:

cash flow used from investing activities              215,000

Explanation:

Investing activities

proceed from sale of building    500,000

Investment Fleet Corp.               (120,000)

Equipment purchased                 (65,000)

loan to suppliers                         (100,000)

cash flow used

from investing activities              215,000

The common stock and dividend are financing

The land was acquire with a note payable, it do not involve cash.

the loan is made by the company to a supplies, it will be returned with interest, not goods, so is investing.

8 0
2 years ago
Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp
cricket20 [7]

Answer:

P14 = $55.69545045394  rounded off to  $55.70

Explanation:

The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,

P0 = D1 / (r - g)

Where,

  • D1 is the dividend expected in Year 1 or next year
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362  rounded off to  $1.67

Now using the equation for Price as provided by the DDM model,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394  rounded off to $55.70

6 0
2 years ago
When business improved, Tasha Lind determined that the company had a talent shortage. Which of the following methods should she
Len [333]

Answer:

c. Outsource to a third party

Explanation:

At that time when business improved, Tasha Lind saw that the company is suffering with shortage of talent. From the given following methods she should use <u>outsource to a third party</u> for managing the shortage of talent because as outsource to a third party generally means that the company will give the contract of their work to any third party they wish. As company is suffering with shortage of talent, so the company will have to give contract to any other third party because company will not make its loss.

7 0
2 years ago
Melon Lawn Co. advertises its new XJ200 lawn mower. Salespersons describing the XJ200 on behalf of Melon Lawn describe it as a "
kramer

Answer:

<em>c. puffery</em>

Explanation:

Puffery happens when <em>advertisers are trying to encourage people across different techniques to purchase  a product or service.</em>

A business can send an amusing advertisement about its product,  contrast the product to a similar item, mention product details,  or make broad statements about the product that can not be proven to be true.

7 0
2 years ago
Data concerning Sinisi Corporation's single product appear below: Selling price per unit $ 200.00 Variable expense per unit $ 58
Finger [1]

Answer:

Break-even point (dollars)= $574,000

Explanation:

Giving the following information:

Selling price per unit $ 200.00

Variable expense per unit $ 58.00

Fixed expense per month $ 407,540

<u>To calculate the break-even point in dollars, we need to use the following formula:</u>

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 407,540 / [(200 - 58)/200]

Break-even point (dollars)= $574,000

7 0
2 years ago
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