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
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

You might be interested in
Knowledge Check 04 On December 29, 2015, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumul
KIM [24]

Answer:

Depreciation expense $2,000

         To Accumulated depreciation - equipment $2,000

(Being the depreciation expense is recorded)

Explanation:

The journal entry is shown below:

Depreciation expense $2,000

         To Accumulated depreciation - equipment $2,000

(Being the depreciation expense is recorded)

For recording this we debited the depreciation expense as it increased the expenses and credited the accumulated depreciation as it reduced the value of the fixed assets. This both items should be recorded for $2,000

8 0
3 years ago
Diversification is important in investing because...
Alenkinab [10]

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

8 0
3 years ago
Read 2 more answers
In an international transaction involving a bank as a third party, the exporter ships the product after:
nataly862011 [7]

Answer: the bank promises to pay on the importer’s behalf

Explanation:

8 0
2 years ago
Russell Preston delivers parts for several local auto parts stores. He charges clients $1.30 per mile driven. Russell has determ
Lapatulllka [165]

Answer:

A. Determine how many miles Russell needs to drive to break even?

break even formula = total fixed costs / contribution margin

  • total fixed costs = $1,220
  • contribution margin = $1.30 - $0.29 = $1.01

break even formula = $1,220 / $1.01 = 1,207.9 ≈ 1,208 miles

B. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

if he drove 2,500 he made a profit because it is more than the break even point.

C. Determine how many miles Russell must drive to earn $2,135.00 in profit.

($1,220 + $2,135) / $1.01 = 3,321.7 ≈ 3,322 miles

D. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month.

total revenue                         $3,250

<u>- variable costs                       ($725)</u>

contribution margin              $2,525

<u>- fixed costs                         ($1,220)</u>

net income                            $1,305

E. Use the above information to calculate Russell’s degree of operating leverage.

Degree of operating leverage = contribution margin / operating income = $2,525 / $3,250 = 0.7769 or 77.69%

8 0
3 years ago
Prepare the journal entries to record the following transactions for Reese Company, which has a calendar year end and uses the s
belka [17]

Answer:

Reese Company Journal entries

September 30, 2017

Dr Depreciation Expense 12,000

Cr Accumulated Depreciation -Equipment 12,000

(To record depreciation expense)

Dr Cash 46,000

Dr Accumulated Depreciation-Equipment 44,000

Dr Loss on Disposal of Plant Assets 6,000

Cr Equipment 96,000

(To record sale of delivery equipment at a loss)

b)On June 30, 2017

Dr Cash 24,000

Dr Accumulated Depreciation-Equipment 15,000

Cr Equipment 36,000

Cr Gain on Disposal of Plant Assets 3,000

(To record sale of office equipment at a gain)

Explanation:

a.September 30, 2017

Calculation for Depreciation Expense and Accumulated Depreciation -Equipment

We have to record depreciation expense for the first 9 months of 2017 which is

$80,000 ÷ 5 years = $16,000 ×9/12 = $12,000

Calculation for Accumulated Depreciation-Equipment:

($32,000 + $12,000) =44,000

Calculation for Loss on Disposal of Plant Assets

($52,000 – $46,000) =6,000

b)On June 30, 2017

Calculation for Gain on Disposal of Plant Assets

($24,000 – $21,000)=3,000

7 0
3 years ago
Other questions:
  • When your Mac is turned on, this application is always running.
    15·2 answers
  • Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which d
    11·1 answer
  • Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased w
    10·1 answer
  • What type of insurance policy would somone get to protect others?
    9·2 answers
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    9·1 answer
  • Which of the following financial statements is concerned with the company at a point in time?
    10·1 answer
  • How do you find phones?
    10·2 answers
  • Why are marketers putting so much emphasis on developing strong brands?
    8·1 answer
  • Does Canada have a strong secondary industry sector?
    6·1 answer
  • Economist Thomas Piketty criticized executive compensation levels and thought CEOs should be satisfied with:
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!