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Margaret [11]
3 years ago
8

3. Hari Seldon is planning for his retirement 6 years from now. He plans to deposit $30000 each year for 6 six years (i.e., 6 de

posits in years 1–6) in a bank that offers a savings rate of 10% per year. Hari Seldon is also aware that inflation will be present during these 6 years and predicts the inflation rate to be 4% per year (during all 6 years). Answer the following questions.
(a) What is his expected bank balance 6 years from now?
(b) What is the purchasing power of his bank balance 6 years from now in current value of a dollar?
(c) What is the rate at which his purchasing power is growing with this investment?
Business
1 answer:
erik [133]3 years ago
5 0

Answer:

a) $231,468.30

b) $209,259.56

c) 9.59%

Explanation:

a) to calculate FV, n=6,I=10, pv=0 and pmt=30000

b) to calculate effect of inflation On FV

N=6, I =6 (nominal interest less inflation), pv=0 and pmt=30000

c) [(231468.30-209259.56)/231468.30]x100

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Answer:

The opportunity cost of the time spent studying includes: 2) the benefit that could have been received at the street festival

Explanation:

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In this case,  the cost of opportunity is the  benefit that could have been received at the street festival,  because that is the option you leave behind.

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Answer:

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Refer below.

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3 0
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The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
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Answer:

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October    Cash                                              $21,000

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why because i never heard them talk about that stuff on the radio sorry if it was wrong

4 0
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