1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nekit [7.7K]
3 years ago
14

you are a trust fund baby, but you cannot touch your money until you are 30. you are now 21 and want to plan for your future bas

ed on the current value of your trust fund. The guaranteed payout of your trust is $25,000. what is that money worth to you today if you assume an annual inflation rate of 3% compounded annually
Business
1 answer:
meriva3 years ago
6 0

Answer:

Explanation:

30 - 21 = 9 years

r = 3% inflation

FV = 25,000

We know that FV = PV(1+r)^n

25,000 = PV(1+0.03)^9

PV = 25,000/ 1.3047731

PV = 19,160.42, this is how much it worth today

You might be interested in
$17,200 is invested, part at 6% and the rest at 2%. If the interest earned from the amount invested at 6% exceeds the interest e
dezoksy [38]

Solution:

Let x = amount invested at 6% and

let y = amount invested at 2%.

We can set up some equations that describe x and y:

 

"$17,200 is invested total" means

x + y = $17,200

 "The interest earned from the amount invested at 6% exceeds the interest earned from the amount invested at 2% by $441.00" means

0.06x = 0.02y + $441.00

 

Solve for x in the first equation to get x = 17,200 - y, then plug that into the second equation and solve for y:

 

0.05(17,200 - y) = 0.02y + 441.00

860 - 0.06y = 0.02y + 865.35

5.35 - 0.09y = 0.02y

154.80 = 0.11 y

1407 = y

 

So, $1407 was invested at 2%. Plug y = 1407 into the first equation and solve for x:

 

x + 1407 = 17,200

x = 15,793

 

So, $15,793 was invested at 6%.

4 0
3 years ago
List at least three reason saving are importan
weqwewe [10]

Saving provides financial security, Buy a Car, and you can  Buy a House.

6 0
3 years ago
Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4
Gekata [30.6K]

Answer: See explanation

Explanation:

The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:

= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate

= 2.00/[20.00 × (1 - 4.5%)] + 4.2%

= 2.00 /[20.00 × (1 - 0.045)] + 0.042

= 2.00 / (20.00 × 0.955) + 0.042

= (2.00/19.10) + 0.042

= 0.104712 + 0.042

= 0.146712

New cost of equity = 14.67%

You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%

6 0
3 years ago
What is another way of referring to workers and factory owners? socialists and democrats the people and the patricians labor and
klemol [59]

Answer: Labor and Capital.

Explanation:

Another way in which factory workers and factory owners can be referred to, is the laborers and the capital.

The factory workers are the laborers, because they carry out job and get paid salary/wages.

The factory owners are the ones that supply the capital needed in the factory and gain profit from their investment.

7 0
3 years ago
The ppt slides suggest the use of control charts and using deming's ideas of quality control to help with the management of asth
hichkok12 [17]
<span>The Deming's ideas of QC work in any process, including health conditions. If the randomly chose asthma patients are checked regularly/periodically and they follow the Demings' rule, it may be concluded that the treatment regime is successful at the required levels of health.</span>
6 0
3 years ago
Other questions:
  • For the past two years, regis has been working as an engineer. he enjoys the work and identifies himself as an engineer when peo
    7·1 answer
  • If the halo effect is apparent in a performance review, it indicates:
    7·1 answer
  • The ____, implemented in 2001, grants federal authorities expanded surveillance and intelligence-gathering powers, such as broad
    6·1 answer
  • Many individuals (third parties) in a society encounter ___________ externalities from a student’s college education that is str
    9·1 answer
  • Ortega Industries manufactures 20,950 components per year. The manufacturing cost of the components was determined to be as foll
    12·1 answer
  • Using the rule of 72, t = StartFraction 72 Over r EndFraction, how long will it take for the principal to double with an annual
    14·1 answer
  • According to the FCPA, U.S. managers are criminally liable Question 5 options: a) Only for bribes paid in the U.S. and not in ot
    13·1 answer
  • ____________ give the inventor the exclusive legal right to make, use, or sell the invention for a limited time, while _________
    15·1 answer
  • Why is it important to reconcile your bank statements?
    13·1 answer
  • What two key values are identified for each performance parameter in the capability development?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!