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olya-2409 [2.1K]
2 years ago
12

Quiz week 3 - 401(k) & investing a 6. if a person starts investing $100 per month starting at age 21, and that money earns a

7% return every year, how much will this person have when turning 70 years old? for ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100).
Business
2 answers:
Ksju [112]2 years ago
7 0

To solve this problem, we use the formula:

F = A [(1 + i)^n – 1] / i

where,

F is the future value or the amount he will have

A is the amount he invest each year = 1200

n is number of years = 70 – 21= 49

i is the interest or return rate = 7% = 0.07

 

Hence the value of F is:

F = 1200 * [1.07^49 – 1] / 0.07

<span>F = $454,798.80 </span>

AlekseyPX2 years ago
4 0
This can be solved by a formula for compound interest wherein:

A = Expected amount
i = interest raten = annual depositst = timed = initial deposit amount
A = d { [(1 + i/n )nt+1 - (1 + i)] / i }A = 100 { ((1 + 0.00583)841 - (1 + 0.00583)) / 0.07 }A = 100 { (132.793 - 1.0053) / 0.07 }A = 188268 
The final amount would be 188268 dollars after he has already turned to the age of 70 if he would start investing in this investment medium when he is only 21.  
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Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$
Serjik [45]

Answer:

$358,000

Explanation:

Calculation to determine how much cash should Sioux expect to collect during the month of April

April sales collected in April ($370,000 × 60%) $222,000

March sales collected in April ($340,000 × 40%) $136,000

Total cash collections in April $358,000

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Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000

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3 years ago
A fast-food restaurant serves the student community within a university campus. The restaurant newly introduces pocket-friendly
MissTica

Answer:

These are the options for the question:

A. Segmentation

B. Cannibalization

C. Market penetration

D. Product bundling

And this is the correct answer:

B) Cannibalization

Explanation:

Cannibalization occurs when a newly introduced product reduces the market share of previous products.

In this case, the pocket-friendly combo meals have effectively made the rest of the menu unattractive to customers, it has cannibalized the other meals.

This effect is refer to as cannibalization, because as the original meaning refers to a hostile act withing the same species, in marketing, this effect occurs among products within the same company.

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3 years ago
Amounts withheld from each employee for social security and medicare vary by state.
satela [25.4K]

It is False.

No matter which states the employee lives, the amounts withheld from each employee for social security and medicare do not vary by state. The present tax rate for social security for employers and employees is 6.2% and the present current rate of medicare is 1.45% for both the employer and employee.

Employers are typically required to withhold Social Security and Medicare taxes from an employee's paycheck and pay the employer's share of those taxes.

The Social Security Tax and the Medicare Tax have different rates, and only the Social Security tax has a salary cap. The base salary ceiling is the maximum taxable salary in the year. Determine the withholding amount for Social Security and Medicare contributions by multiplying each payment by the employee's tax rate.

To learn more about social security and medicare from given link

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1 year ago
If airlines do not change their prices how else might they try to compete with each other?
WARRIOR [948]
<h3>Hello there!</h3>

Your question asks how airlines compete with each other if they don't change their prices.

<h3>Answer: By giving the customers better service.</h3>

If an airline company doesn't want to change their prices for a flight, but still want to compete with other airlines, then they would try to compete by providing more and better services to the customers.

When an airline competes with providing better services, it attracts customers to choose them because customers could feel more comfortable on their flight.

Airlines can compete by providing:

  • Wi-Fi
  • More space
  • Entertainment
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Airlines now a days are starting to provide Wi-Fi services to its customers in the aircraft. Since we live in a world that needs Wi-Fi for electronical things, airlines are providing Wi-Fi in order to have people choose their airline for their flight. Providing Wi-Fi to its customers will not only bring in more customers, but can keep people busy on the flight, having no disruptions since people would be focused on their personal stuff on their laptop/phone/etc.

Airlines are also competing by providing more space in their cabin. People that go on flights feel very cramped in their seat; having little leg room between their legs and the seat in front of them. Airlines are making more leg room and space for the customers in order for them to enjoy the flight. This is luring in customers because customers want to feel comfortable, and space is the main thing that customers want in their flights.

Airlines are also competing by providing entertainment. The entertainment part of an aircraft is in the little screen that would be in front of the customer, behind the seat in front of them. This entertainment service would entertain people on their flights. This entertainment service could provide movies, world map, and etc. Flights are boring, and so airlines are trying to make the flights more entertaining.

Airlines are also competing by providing better food. Who doesn't get hungry on the plane? If airlines are giving terrible food, why would someone want to choose that airline again? Airlines are providing better food in order for customers to choose them as their airline. Food is a major thing that lures people into different airlines. This is something that airlines are trying to improve all the time.

To sum it all up, these are just some of the ways airlines compete with each other, without having to change the price of their flights.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
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Explanation:

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