Andrew wants to open an account for his grandson that he hopes will have $30,000 in it when he turns 21. How much should he put into an account monthly that earns 2.5% interest, compounded monthly, if he begins when his grandson is born? A. $84.46 B. $96.47 C. $90.64 D. $73.44

Q: How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an…

A: Future Value = Present Value (1 + Interest Rate) Number of years FV =PV (1+r)n Here, Present Value…

Q: Explain the Dupont Analysis.

A: Ratio is a tool which is used to measure the performance of the company by establishing the relation…

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A: Agency Conflict refers to Conflict between the agents and owners of the company  Agents refers to…

Q: Until its involvement as Enron’s auditor, Arthur Andersen was recognized as one of the most…

A: A corporation is a legal entity that exists without its owners. Corporate entities have many of the…

Q: The Dow Jones Industrial Average (DJIA30) and the Standard strial Index (S&P500) have a number of…

A: Dow Jones and S and P 500 are very important in stock market of US and are barometers of US stock…

Q: What is the value of a bond that matures in 12 years, makes an annual coupon payment of $50, and has…

A: The value of the bond is the current price of the bond. It is the present value of the cash flows…

Q: A company has an overdue 10% note payable to Filipino Bank amounting to P8,000,000 with accrued…

A: Data given: 10% note payable                  = P 8,000,000 accrued interest                     = P…

Q: A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.70…

A: Macaulay duration and modified duration both measure the bond's price sensitivity to the change in…

Q: Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball…

A: Spot rate EUR/USD = 1.06 Cost of Bobcat baseball cap in USD = $21 Cost of Bobcat baseball cap in EUR…

Q: he nominal rate of return is ______% earned by an investor in a bond that was purchased for $906,…

A: Nominal rate of return of the bond is the sum of coupon payment and price difference in bond Nominal…

Q: Jane is planning on saving for a car purchase in 8 years, however, she can only contribute to the…

A: Here we will use the concept of annuities and time value of money. The amount invested by Jane at…

Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the…

A: Buying Price = ( Selling Price + Dividend)/(1 + Return)

Q: Management of BIC Inc, is considering an expansion in the firm’s product line that requires the…

A: Solution: The decision whether the project should be undertaken or not depends upon the rate of…

Q: moderale curent asset inveatment policy, but it is now considering a change, perhaps to a restricted…

A: Answer-    1. Restricted policy where current assets are 20% of sales.   Sales = $400,000 Current…

Q: What is the yield to maturity of a bond that pays an 5.02% coupon rate with annual coupon payments,…

A: Solution:- Yield to maturity (YTM) means the annual rate of return provided by the bond, if the bond…

Q: can afford a monthly payment of $1,000. He wants to take out a $60,000 loan at 8% interest rate.…

A: Loans are paid by the equal monthly installments these installments carry the payment for principal…

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A: The Gordon growth model is used to determine the stock price based on a future series of dividends…

Q: Upper Hutt Bakery Warehouse uses specialized ovens to bake its bread. One oven costs $1,000,000 and…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Could you explain without using the excel?

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Q: Using the formula for an annuity, what would be the monthly payments on a 5-year fixed-rate car loan…

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Q: rivate banking is the provision of wealth management services to high net worth individuals who…

A: Private banking, as the name indicates, entails providing personalized financial services and…

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Q: USE MICROSOFT EXCEL FORMAT SHOW FORMULAS USED   Find the Break Even Quantity of production for…

A: The break-even point is the point at which total cost and total revenue are equal, indicating that…

Q: Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock…

A: Purchasing a put option means the right to sell at certain security only if stock price is less than…

Q: Critically discuss the CAMELS ratings and its effectiveness in banking regulation.

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Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

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Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: Fist we need to calculate monthly mortgage payment by using PMT function in excel…

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Q: The Cookie Jar bakes 80 dozen cookies at a cost of $1.08 per dozen. If a markup of 60% on selling…

A: Solution:- We know, markup stands for the percentage margin added either on cost or sales price.

Q: Contemplating retirement an individual wants to create a fund on an 5% basis allowing $24,000.…

A: Balance on fund at the start to allow $24,000 annual withdrawal for 20 years is the present value of…

Q: As an Analyst you were tasked to compute for the Weighted Average Cost of Capital of various…

A: Weighted average cost of capital (WACC) is the average cost of capital of the firm from all sources…

Q: Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball…

A: Spot exchange rate EUR/USD = 1.06 Purchase cost in USD = $21   Cost in EUR = ?     We will use…

Q: Mrs. Reyes decided to save money for her grandchild. She deposit Php 300 each month into an account…

A: Annuity: It refers to the present and future value of recurring payments at a particular point of…

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A: When the money is deposited or collected at a regular interval of time with the given interest rate,…

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A: Price of the house = PHP 1,500,000 Interest rate = 0.055 (i.e. 5.5%) Amount deposited (Year 1) = PHP…

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A: The amount that have to be invested at the beginning of year 2018 is the sum of present value of…

Q: Suppose that $10,000 of a 6-year fixed-principal Treasury note with a coupon rate of 6.5% is…

A: Treasury notes: Treasury notes are fixed principal coupon paying bonds that pay a semi-annual…

Q: John save Php 120 every quarter for 3 years earning 7% compounded monthly in a fund. How much will…

A: (1+i) = (1+i(12)/12)^12 (1+i) = (1+0.07/12)^12 (1+i) = 1.07229 i = 0.07229 = 7.23%

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A: Simple Interest: Interest refers to the cost of borrowing money.  When the interest is charged only…

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.