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Naddik [55]
3 years ago
13

Amy​ Parker, a​ 22-year-old and newly hired marine​ biologist, is quick to admit that she does not plan to keep close tabs on ho

w her​ 401(k) retirement plan will grow with time. This sort of thing does not really interest her.​ Amy's contribution, plus that of her​ employer, amounts to ​$2 comma 150 per year starting at age 23. Amy expects this amount to increase by 3​% each year until she retires at the age of 57 ​(there will be 35 EOY​ payments). What is the compounded future value of​ Amy's 401(k) plan if it earns 5​% per​ year?
Business
1 answer:
lakkis [162]3 years ago
6 0

Answer:

Final Value= $370,481.13

Explanation:

Giving the following information:

Amy's contribution, plus that of her​ employer, amounts to ​$2,150 per year starting at age 23. Amy expects this amount to increase by 3​% each year until she retires at the age of 57 ​(there will be 35 EOY​ payments). Interest rate= 5%.

<u>First, we will add the growth of the deposits to the interest rate:</u>

Interest rate= 0.03 + 0.05= 0.08

Now, to calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit= 2,150

i= 0.08

n= 35

FV= {2,150*[(1.08^35)-1]}/ 0.08= $370,481.13

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3 years ago
Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of Septembe
Degger [83]

Answer:

lLIFO-option B is correct ,$750

FIFO-option A is correct,$800

Explanation:

In using LIFO, each item sold is from the last inventory received while the FIFO is of the opinion that item sold is the oldest stock of inventory.

Under LIFO, cost of ending merchandise is as follows:

10 units (20-10) at      $20=$200

10 units (30-20) at     $25=$250

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The correct option is B,$750

Under FIFO, cost of ending inventory is as follows:

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10 units at $30                   = $300

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The correct option is A,$800

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3 years ago
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2 years ago
Which accurately describes the terms of this mortgage? Check all that apply.
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Answer: 3, 4, 5.

3. Monthly payments must be made for 30 years.

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