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Tomtit [17]
2 years 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]2 years 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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If Starbucks raises its price by 5 percent and McDonald’s experiences a 0.5 percent increase in demand for its coffee, what is t
Gnesinka [82]

Answer:

<em>Cross-price elasticity of demand = 0.1</em>

Explanation:

We have the formula to calculate the cross-price elasticity of demand as below:

<em>Cross-price elasticity of demand = % change in quantity demanded for product X/ % change in price of product Y</em>

<em />

Starbucks raises its price by 5 percent, so that <em>percentage changes in price of Starbucks' products</em> are 5

McDonald's experiences a 0.5 percent increase in demand for its coffee, so that <em>percentage changes in quantity demanded for McDonald's coffee </em>is 0.5

=> <em>Cross-price elasticity of demand = % changes in quantity demanded for McDonald's coffee/ %changes in price of Starbucks' products</em>

<em>= 0.5/5=  0.1</em>

6 0
2 years ago
BigFive Inc. has been known for its excellent customer service since its start more than 40 years ago. The company carefully sel
Angelina_Jolie [31]

Answer: The correct answer is "E. BigFive's employees not only know how to do their work but also are enthusiastic and committed.".

Explanation: The BigFive Inc company, when selecting employees carefully emphasizing the search for skills and above all commitment to the values of customer service and quality of the company, in the long term it was highly benefited since its employees are trained according to the culture Organizational of the company and they not only know how to do their job, but they are also excited and committed.

8 0
2 years ago
Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to te
Vesnalui [34]

Answer:

$3.5 million

Explanation:

Data given in the question

Book value of the division assets = $33.50 million

Fair value of the division assets = $30 million

The sum of estimated future cash flows generated = $38 million

So, by considering the above information, the amount of impairment loss is

= Book value of the division assets - fair value of the division asset

= $33.5 million - $30 million

= $3.5 million

Since the fair value is less than the book value so the difference should be recorded as an impairment loss

5 0
2 years ago
Ms. Frank is planning for a 25-year retirement period and wishes to withdraw a portion of her savings at the end of each year. S
alina1380 [7]

Answer:

I guess the interest rates are 9.10% and 7% per year.

a) $173,369.67

b) $217,212.31

Explanation:

the total distributions received by Ms. Frank are:

year distribution  

1 10000

2 11000

3 12000

4 13000

5 14000

6 15000

7 16000

8 17000

9 18000

10 19000

11 20000

12 21000

13 22000

14 23000

15 24000

16 25000

17 26000

18 27000

19 28000

20 29000

21 30000

22 31000

23 32000

24 33000

25 34000

Using excel, I calculated the present value of this annuity using the different discount rates (using present value function)

a) $173,369.67

b) $217,212.31

8 0
2 years ago
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