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Alina [70]
3 years ago
9

Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 6.3 percent until you retire in 35 years.

You believe that interest rates will increase over the next year and you would be offered 6.9 percent per year one year from today. If you plan to deposit $19,500 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?
Business
1 answer:
Hatshy [7]3 years ago
8 0

Answer:

$23,022.68

Explanation:

We are to calculate the future value of this amount using the two different interest rates and find the difference

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$19,500 (1.063)^35 = $165,462.23

$19,500 (1.069)^34 = $188,484.91

$188,484.91 - $165,462.23 = $23,022.68

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The correct answer to the question above is:

a. relationship between Abraham (and later Moses) and Jahweh.

The covenant was first established by Jahweh with Abraham. He showed his faith to Jahweh’s promises, obedience to His commandments, and worships Him with all his heart.

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8 0
3 years ago
Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already h
bija089 [108]

Answer:

$5,456

Explanation:

A relevant cost can be defined as the cost that are said to be in form of a future cash cost that is relevant and important to a particular decision.

The relevant cost:

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3 years ago
Manufacturers sometimes offer a quantity discount to buyers on what kind of order?
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3 years ago
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Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
Elina [12.6K]

Answer:

The question is missing the options which are below:

A Real risk-free rate differences.  

B Tax effects.  

C Default risk differences.  

D Maturity risk differences.  

E Inflation differences.  

The correct answer is option C,default risk differences.

Explanation:

Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.

Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:

Balance sheet position

Profitability

Liquidity strength of the company

Macro-economic factors and some others.

Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest  when due.

Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.

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Answer:

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Explanation:

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