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
Mandarinka [93]
2 years ago
13

Your friend Bob just retired after running a donut shop for 40 years. He has saved $3.5 million in his retirement accounts. Now

he has his money in bond funds that have a 5% annual rate of return.
A) How much will Bob be able to withdraw at the beginning of each month for the next 30 years? Assume he will have $0 left after year 30.
Business
1 answer:
Readme [11.4K]2 years ago
8 0

Answer:

$18,711.57

Explanation:

The amount that the Bob will be getting at the beginning of the each month for the next 30 years shall be determined through the present value of annuity formula which shall be determined as follows:

Present value of annuity=R+R[(1-(1+i)^-n)/i]

R=Amount that he will be getting per month for next 30 years=?

i=interest rate per month=5/12=0.4167%

n=number of payment involved=30*12=360 and since the first payment is made at the start of month, therefore the n=359

Present value of annuity=$3,500,000

$3,500,000=R+R[(1-(1+0.4167%)^-359)/0.4167%]

$3,500,000=R+186.05R

$3,500,000=187.05R

R=$18,711.57=payment per month

You might be interested in
During the infection stage, what three actions does a computer virus typically perform?
zloy xaker [14]
During the infection stage, the virus usually replicates itself, conceals itself and activates only when the necessary conditions are found.

Each of these actions assures a certain mission:
- The virus replicates to make sure it stays in all areas of the computer for the longest possible time
- Conceals itself for its safety
- Activates only when necessary conditions occurs to does the damage it's supposed to do.

Therefore, you must always protect your computer by using a strong antivirus and frequently scanning the computer. <span />
8 0
2 years ago
Rites and rituals are ____. for example, employees of new belgium brewery in fort collins, colorado, get a free brewery-hopping
3241004551 [841]

The rites and rituals are considered to be ceremonies and activities in which should be placed on the space provided because they are use for occasions in a way of celebrating a specific group or organization that has set an example above.

3 0
2 years ago
Miguel, Inc. reported net income of $2.5 million in 2022. Depreciation for the year was $160,000, accounts receivable decreased
Valentin [98]

Answer:

$2,730,000

Explanation:

The opening cash balance is netted off the cash flows from all activities namely; Operating, investing and financing activities to get the closing cash balance.

The operating activities includes elements such as net income, depreciation and amortization, changes in working capital etc.

Given;

Net income = $2,500,000

Depreciation = $160,000

accounts receivable decrease = $350,000 (inflow of cash)

accounts payable decrease =  $280,000 (outflow of cash)

net cash provided by operating activities using the indirect approach

= $2,500,000 + $160,000 + $350,000 - $280,000

= $2,730,000

4 0
2 years ago
For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes t
ziro4ka [17]

Answer:

$6.25 per ton of coal

Explanation:

the depletion base = purchase cost + restoration costs

  • purchase cost = $20 million
  • restoration costs = $6 million

depletion base = $26,000,000

depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal

The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.

8 0
2 years ago
Brief Exercise 5-8 Cullumber Company has a unit selling price of $630, variable costs per unit of $300, and fixed costs of $327,
IRISSAK [1]

Answer:

(a)

Mathematical Equation for break-even

F = QP - QV

Where

F = fixed cost

Q = Break-even quantity

P = Selling price

V = Variable cost

F = Q ( P - V )

Q = F / ( P - V )

Q = $327,030 / ( $630 - $300 )

Q = $327,030 / $330

Q = 991 units

(b)

Contribution Margin = Price per unit - Variable cost per unit

Contribution Margin = $630 - $300 = $330

Break-even Point in Units = Fixed Cost / Contribution margin per unit

Break-even Point in Units = $327,030 / $330 = 991 units

Explanation:

Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.

Contribution per unit method use the contribution of each unit to calculate the break-even point.

5 0
2 years ago
Other questions:
  • If a document reaches you, and requires you to perform some action, you should do it immediately if ________. a. It is from your
    6·2 answers
  • Regina pays her credit card balance in full each month. Last month her average daily balance was $345 and the APR is 11.2%. The
    7·1 answer
  • Denise’s organization is becoming less hierarchical every day. She is decentralizing authority, and her employees find that thei
    15·1 answer
  • Your company has asked you to do research how it can provide smartphones to its employees. The company wants to give employees a
    6·1 answer
  • The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabricatio
    10·1 answer
  • A ________ is a partnership in which two or more companies (often from different countries) join together and share the risk and
    7·1 answer
  • On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625.
    15·1 answer
  • Consider the difference between Liechtenstein’s per capita GDP and the per capita GDP of the U.S. Chances are you have never hea
    15·1 answer
  • Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should b c
    15·1 answer
  • Sandoval needs to determine its year-end inventory. The warehouse contains 26,000 units, of which 3,600 were damaged by flood an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!