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torisob [31]
4 years ago
14

Janice plans to save $80 a month, starting today, for 20 years. Kate plans to save $80 a month for 20 years, starting one month

from today. Both Janice and Kate expect to earn an average return of 5.5 percent on their savings. At the end of the 20 years, Janice will have approximately ________ more than Janice.
a. $66.67
b. $159.73
c. $78.14
d. $0
e. $189.12
Business
1 answer:
yuradex [85]4 years ago
7 0

Answer: b. $159.73

Explanation: At the end of the twenty years, Janice would have approximately $159.73 more than Kate. To solve for this, we calculate the future value of the money saved over the time period for both Janice and Kate, and then take the difference to arrive at the correct answer.

Future Value for Janice = $80 ×{[1 + (.055 / 12)]^240 - 1} / (.055 / 12) × [1 + (.055 / 12)] = $35,009.92

Future Value for Kate = $80 ×{[1 + (.055 / 12)]^240 - 1} / (.055 / 12) = $34,850.19

Difference = $35,009.92 - $34,850.19 = $159.73

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Len [333]

Answer:

A. Dr. Office Supplies, $80; Dr. Merchandise inventory, $160; Dr. Miscellaneous expenses, $20; Dr. Cash over and short, $8; Cr. Petty cash, $268.

Explanation:

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7 0
3 years ago
g Mad Mex just paid a dividend of $4.00. Next year they anticipate paying a dividend of $6 and then a dividend of $7 in the subs
zalisa [80]

Answer:

The market value of the stock is $132.73.

Explanation:

D0 = Dividend just paid = $4

D1 = Anticipated next year dividend or Year 1 dividend = $6

D2 = Dividend of in the subsequent year or Year 2 = $7

D3 = Year 3 dividend = D2 * (100% + Dividend growth rate forever) = $7 * (100% + 5%) = $7.35

Sum of present values of D1 and D2 = (D1 / (100% + required rate of return)^1) + (D2 / (100% + required rate of return)^2) = ($6 / (100% + 10%)^1) + ($7 / (100% + 10%)^2) = $11.2396694214876

Stock price in year 2 = D3 / (Required rate of return - Dividend growth rate forever) = $7.35 / (10% - 5%) = $147

Present value of Stock price in year 2 = Stock price in year 2 / (100% + required rate of return)^2 = $147 / (100% + 10%)^2 = $121.487603305785

Market value of the stock = Present value of Stock price in year 2 + Sum of present values of D1 and D2 = $121.487603305785 + $11.2396694214876 = $132.73

Therefore, the market value of the stock is $132.73.

5 0
3 years ago
Original source: for those who can't afford to be fussy about status or pay, there are of course plenty of jobs in america. Hund
shepuryov [24]
What is the question here? also immigrants take less pay and pay no taxes so that doesn't help the situation especially when they send it home out of the US to be exchanged for much more in their country. something sounds fishy....but we also have opportunities in the US to have a career or real job if you call it that. a job is a job and a career is something you work hard to do by getting a degree or years of experience that the person can grow within the company as well. unlike a "job" where you can only go so high up the food chain.
5 0
3 years ago
Question 11 (3 points)
Korvikt [17]

Answer:b

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How did the pressure change from when it was your turn to be a leader, than when you were just a supporting member? (Take your t
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Answer with Explanation:

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When I was just a<em> supporting member,</em> I didn't really mind about which direction my group should take, so the pressure from stress wasn't a big deal. I was very laid back because I just needed to perform what was asked of me by our leader. No one was constantly looking upon me, thus, I didn't feel like I really needed to do my best.

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