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lakkis [162]
1 year ago
14

Xavier and alex plan on retiring 27 years from today. at that time, they plan to have saved the same amount. javier is depositin

g $15,000 today at an annual interest rate of 5.2 percent. how will alex's deposit amount vary from javier's if alex also makes a deposit today, but earns an annual interest rate of 6.2 percent
Business
1 answer:
hammer [34]1 year ago
3 0

The amount by which Alex's deposit amount vary from Javier's if Alex also makes a deposit today, but earns an annual interest rate of 6.2 percent is $3381.39.

<h3>How to calculate the value?</h3>

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 Javier will be:

=$15000*(1.052)^27

=$58,954.40

For Alex:

58,954.40=P*(1.062)^27

P=58,954.40/(1.062)^27

=$11618.61

Hence difference will be:

=15000 - 11618.61

= $3381.39

Learn more about interest on:

brainly.com/question/2294792

#SPJ1

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1. The total compensation cost pertaining to the incentive stock option plan is $36 million.

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Total compensation expense=$3×12 million

Total compensation expense= $36 million

2. SSG Cycles Journal entry

December 31, 2021

Debit Compensation expense $12 million

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($36 million/3 years = $12 million per year)

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December 31, 2022

Debit Compensation expense $12 million

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(To record compensation expense)

December 31, 2023

Debit Compensation expense $12 million

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($36 million/3 years = $12 million per year)

(To record compensation expense)

3. May 11, 2025

Debit Cash $132 million

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($132 million+$36 million-$12 million)

(To record the exercise of stock option)

Learn more here:brainly.com/question/15053230

4 0
2 years ago
Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per shar
xxMikexx [17]

Answer:

example below

Explanation:

4 0
3 years ago
If the market risk premium increased to 6%, what would happen to the stock's required rate of return
Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

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Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

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2 years ago
The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channe
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Answer: The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as outsourcing.

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5 0
3 years ago
The tax treatment regarding the sale of existing assets that are sold for more than the book value but less than the original pu
8_murik_8 [283]

Answer:

capital gain tax liability

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