What is the formula for break even analysis

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1. What is the formula for Break Even Analysis and why is this analysis vital for any business?

2. A property will provide $7,020 at the end of each year forever. If its value is $117,000, what must be the discount rate? (Enter your answers as a percent rounded to 2 decimal places.)

3. You believe you will need to have saved $400,000 by the time you retire in 40 years in order to live comfortably. If the interest rate is 5% per year, how much must you save each year to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131982641

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