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Ber [7]
2 years ago
11

Your father has $500,000 invested at 8%, and he now wants to retire. He wants to withdraw $50,000 at the end of each year, begin

ning at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero
Business
1 answer:
Julli [10]2 years ago
5 0

Answer:

The number of years is about 21 years

Explanation:

A scheme that allows the withdraw fixed amount of money for a number of years is referred to as annuity

The number of years required to exhaust the fund can be determined using the present of annuity formula

PV = A × (1 - ((1+r)^(-n))/n)

where- PV- Present value, A- annual cash flow, n- number of years , r- interest rate

500,000= 50000 × (1- (1.08)^(-n)/0.08

500,000/50,000= (1- (1.08)^(-n)/0.08

10  =(1- (1.08)^(-n)/0.08

n = 21

The number of years is about 21 years

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The Bella Capri runs as an Italian restaurant that specializes in freshly prepared cooked meals. It is located in premises on a
saul85 [17]

Answer:

The answer is $1000.

Explanation:

We can define fixed cost as the costs that does not increase or decrease as with the change in the service given or the goods produce.

According to this, we can say that the $16 price per meal and therefore the $4 ingredients are not included in the fixed cost. The light, heat and fuel are also dependent on the usage, so they do vary with the service given.

The other costs given in the question are eligible to be counted as fixed costs because they are not dependent on the number of costumers or the amount of food served.

So the fixed costs for Bella Capri per week is $250 + $150 + $600 = $1000.

I hope this answer helps.

6 0
2 years ago
(Chapter Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over
denis-greek [22]

Answer:

$4,500

Explanation:

depreciation expense

= [revised cost of asset - salvage value]/[remaining life of the assets]

=  [$39,000 - $3,00]/[8 years]

= $4,500

Therefore, The Depreciation expense for Year 6 is $4,500.

3 0
2 years ago
Capital budgeting projects typically assume that all cash flows transpire at the end of the year. The reason for this is that:
garri49 [273]

Explanation:

This is an easy way for a manager to make an effective decision to carry out a capital budget project by analyzing a company's inflows and outflows from a period and determining what is the rate of resources and what are the aggregate risks for realization. investment that brings a positive return consistent with organizational objectives.

6 0
2 years ago
An organizational culture most likely to shape high ethical standards among its members is one that? ________.
Oksi-84 [34.3K]
I believe the answer is -A!



Have a Warm and Wonderful Day!!
8 0
2 years ago
Your portfolio has a beta of 1.28. The portfolio consists of 35 percent U.S. Treasury bills, 31 percent Stock A, and 34 percent
Zarrin [17]

Answer:

2.85

Explanation:

U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:

1.28=0.35\beta_{T}+0.31\beta_{A}+0.34\beta_{B}\\1.28 = 0.35*0+0.31*1+0.34\beta_{B}\\\beta_{B}=\frac{1.28-0.31}{0.34}\\ \beta_{B}=2.85

The beta of Stock B is 2.85.

6 0
2 years ago
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