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ANTONII [103]
3 years ago
5

You put aside $300 a month in an account that returns 9% a year, compounded monthly. How long do you need to contribute to save

$1,000,000
Business
2 answers:
mrs_skeptik [129]3 years ago
6 0

Answer:

436 months or 36.33 years

Explanation:

monthly principal P = $300

Amount to be obtained A = $1,000,000

ROI per annum R% = 9%

or ROI per month r% = 9/12 = 0.75%

and n = no. of months

We know that

A= P(1+\frac{r}{100})^n

plugging values we get

1,000,000= 300(1+\frac{0.75}{100})^n

solving the above equation we get

n = 436 months

which is equal to 36.33 years.

Anettt [7]3 years ago
5 0

Answer:

36 years 4 months and 2 days

Explanation:

Data provided in the question:

Monthly payment = $300

Rate of return, i = 9% = 0.09

Future value = $1,000,000

Now,

we know

Future value = Monthly payments × \left[ \frac{(1+i)^{n}-1}{i} \right]

or

1000000  = $300 × \left[ \frac{(1+0.0075)^{ }-1}{ 0.0075 }

or

\frac{ 1000000}{ 300} &= \frac{ 1.0075^{n} - 1}{ 0.0075}

3333.33333 &= \frac{ 1.0075^{n} - 1}{ 0.0075}

1.0075^{n} - 1 &= 3333.33333 \times0.0075

or

1.0075ⁿ - 1 = 25

or

1.0075ⁿ = 26

ln( 1.0075ⁿ) = ln(26)

or

n × ln( 1.0075 ) = ln(26)

or

n = [tex]\frac{ \ln (26) }{ \ln( 1.0075 ) }[tex]

or

n = 436.04  months

or

n = 36 years 4 months and 2 days

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Answer and Explanation:

The journal entries are shown below;

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On April 1

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3 0
3 years ago
3. Raymond decides to set up a lemonade stand every weekend for the next four weeks to save up for the latest X-Men comic. He ha
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Answer:

It should listen to his mother.

Explanation:

This week cash flow handled the fixed cost of 10 to Raymond's brother.

His father is not considering that so it thinks the business flops.

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6 0
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Leather Shop earned net income of $ 71,000 after deducting depreciation of $ 5,000 and all other expenses. Current assets decrea
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$89,000

Explanation:

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Net Income = $71,000

Depreciation = $5,000

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Decrease in Current Assets = $4,000

Net Cash from Operating Activities:

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= $71,000 + $5,000 + $9,000 + $4,000

= $89,000

Therefore, the Leather Shops cash provided by operating activities​ (indirect method) is $89,000.

7 0
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Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $205,000 and its net i
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Answer:

Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

Explanation:

Old Net profit margin = Net income/ Revenue

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Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

6 0
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