1)You've just retired with $1.5 million. If you expect to live for 30 years and to earn 8% a year on savings, how much

Question

1)You've just retired with $1.5 million. If you expect to live for 30 years and to earn 8% a year on savings, how much can you withdraw each year? Assume you withdraw at the start of each year. a) 112,148.50 b) 120,000.00 c) 123,371.44 d) 133,241.15 2)Your retirement account has a current balance of $50,000. You plan to add $6000 at the end of each year for the next 30 years. How much can be accumulated in the account at the end of the 30 years? Interest rate is 9%. a) 817,845 b) 867,845 c) 1,481,229 d) 1,554,835 3)Current marketing situation Federation University? 4)Home and Beyond company has sales of $2850, costs of goods sold of $2190, and accounts receivable of $433. If it takes 73 days on average to sell the inventory, what is the company’s average inventory. 5)Assumes that your firm has total sales of $4740, total costs of $2540, and depreciation of $473. The corporate tax rate is 22 percent. If your firm’s cash coverage ratio is 11, then what is the total interest paid?

Help In Homework · Accepted Answer

1. Given that, Amount available PV = $1500000 expected withdrawals N = 30 Interest rate r = 8% Withdrawals are made at start of the year So, annual withdrawals can be calculated using PV formula of annuity due: PMT = PV*r/((1+r)*(1 - (1+r)^-N)) = 1500000*0.08/((1 - 1.08^-30)*1.08) = $123371.44 So, option c is correct. 2. We use the formula A=P(1+r/100)^n Where A=future value P=present value R=rate of interest N=time period Hence future value of 50,000=50,000*(1.09)^30 =50,000*13.2676784691 =$663,383.923455 Also: Future value of annuity=annuity[(1+rate)^time period-1]/rate =6000[(1.09)^30-1]/0.09 =6000*136.3075385456 =$817,845.2312736 Hence total future value=663,383.923455+817,845.2312736 =$1481229(approx) 3. The University has a long tradition as one of the oldest higher education institutions in Australia. We have a long history in education and training and are marking our 150th anniversary in 2020. In January 2014, we became Federation University of Australia. The following major were highlighted in the current Marketing scenario Rankings and legacy - Students studying at Federation University earn the highest quality teaching in Australia, according to the Strong University Guide 2021 scores. In addition, for the second year in a row, Federation University graduates are more likely to get a full-time job and receive a higher starting salary than any other Victorian university graduate. Industry-relevant programs IRPs - Applicants are regularly reviewed to ensure that

Why Choose Us?

0% AI Guarantee

24/7 Support

Plagiarism Free

Expert Tutors

100% Confidential

On-Time Delivery

1)You've just retired with $1

Expert Solution

Archived Solution