An employee and employer contribute $3,000 annually for 20 years to a retirement account that earns 9 percent a year, how much will the employee be able to withdraw from the account for 25 years??
What will be an ideal response?
This problem illustrates the basics of pension plans. The amount accumulated:? $3,000(51.160) = $153,480?(PV = 0; I = 9; PMT = -3000; N = 20; FV = ?; FV = 153480)?The annual withdrawals: $153,480/IFPVA = 153,480/9.823 = $15624.55?Investing only $3,000 a year for 20 years, permits the individual to withdraw over $15,600 a year for 25 years. (PV = -153480; I = 9; N = 25; FV = 0; PMT = ?; PMT = 15625.22.)
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Calculate the required rate of return for Everest Expeditions Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 1.00, and (5) its realized rate of return has averaged 15.0% over the last 5 years.
A. 10.29% B. 10.83% C. 11.40% D. 12.00% E. 12.60%
_____________ is the degree to which the issues raised by the stakeholder must be dealt with in a time-sensitive manner.
a. Power b. Legitimacy c. Urgency d. Reliability
An offer is not effective until it is actually received by the offeree
Indicate whether the statement is true or false
Anthem Corporation has excess cash to invest and pays $200,000 to buy 7%, five-year bonds of Richmond Corporation, at face value, on June 30, 2016
The bonds pay interest on June 30 and December 31. At the date of purchase, Anthem intended to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30, 2021. Prepare the journal entry for (omit the explanation) June 30, 2021 (assume that the last interest payment has already been recorded). What will be an ideal response