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
Answer:
Jackson's target total cost of producing and selling 6 million cans of paint of $31,800,000 will enable it to reach stockholders' profit goals of $6 million.
The implication is that it should not allow its total costs (Production and other business expenses) to exceed $37,800,000.
This is because its sales revenue will be equal to $43,800,000 (6,000,000 * $7.30).
As such, Jackson can produce a can of paint for $5.30. It can also incur an average business expense of $1.00 per can to maintain and reach its $6 million profit target.
Explanation:
Profit is the difference obtained after deducting all costs from the revenue. There are some profit stages. The first is the gross profit, which considers the sales revenue and the cost of goods sold. The next profit stage is the operating profit, which subtracts the business running expenses from the gross profit. There are also profits before and after interest and taxes. The after tax profit is also called the net income or net profit. If it is negative, then it is called the net loss. It is from the net income that distributions are made to stockholders in the form of dividends while a part is retained in the business to increase its capital stock or stockholders' equity.
Given:
Net sales = $400000
Cost of goods sold = $200,000
Operating expenses = $100,000
Interest expenses = $50,000
To find:
The operating profit margin
Solution:
To calculate the operating profit margin, first we have to find the operating profit.
Subtract your total operating expenses from gross profit to calculate operating profit.
That is, 
Divide operating profit by gross revenue to calculate operating profit margin.
Therefore, the Operating profit margin is 25%.
Answer:
The Yield to Maturity of the Bond (YTM) is 113.86 %
Explanation:
The Yield to Maturity of the Bond (YTM) can be determined using a Financial Calculator as follows :
Pv = -$98.613
Fv = $2,000
p/yr = 2
n = 18 × 2
Pmt = ($2,000 × 6.60%) ÷ 2 = $66
r = ?
Using a Financial Calculator r is 113.86 %.
