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Tomtit [17]
1 year ago
13

Suppose you earned a $275,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each

of the next 20 years? Select one: a. $28,532 b. $29,959 c. $31,457 d. $33,030 e. $34,681
Business
1 answer:
olga nikolaevna [1]1 year ago
3 0

Answer:

withdraw = 28532.45

so correct option is  a. $28,532

Explanation:

given data

earned = $275,000 bonus

interest rate = 8.25% per year

time = 20 year

to find out

How much could you withdraw at the end of each of the next 20 years

solution

first we find here Cumulative discount factor that is express as

Cumulative discount factor = \frac{(1-(1+r)^{-t}}{r}   .............1

put here value r is rate and t is time

Cumulative discount factor = \frac{(1-(1+0.0825)^{-20}}{0.0825}

Cumulative discount factor =  9.638148

so here

withdraw = Present amount ÷ cumulative discount factor   .......2

put here value we get

withdraw = \frac{275000}{9.638148}

withdraw = 28532.45

so correct option is  a. $28,532

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2 years ago
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 millio
jonny [76]

Answer:

$45.027 million

Explanation:

The accounting equation shows the relationship between the various elements of the balance sheet. These are the assets, liabilities and equity. It is given as

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Retained earnings = Equity - Common stock

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5 0
1 year ago
Trucks R' Us has a market capitalization of $142 million, $78 billion in BB rated debt, and $10 billion in cash. If Trucks R' Us
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Answer:

Their underlying asset beta is closest to is 1.08

Explanation:

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Therefore, in order to calculate the underlying asset beta we would have to use the formula of the the equity beta for a levered firm as follows:

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Read 2 more answers
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