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jekas [21]
2 years ago
10

Athlete Kalen wishes to retire at age forty-five and receive annual birthday payments of $40,000 beginning on his forty-fifth bi

rthday. After his death, the payments on the anniversary of his birth should go to his heirs. In order for Kalen to be able to carry out his plan, he makes contributions to a savings account with a guaranteed annual effective interest rate of 4%. How much money will Kalen need to have accumulated at age forty-five, just prior to his first $40,000 birthday payment
Business
1 answer:
wolverine [178]2 years ago
0 0

Answer:

1,040,000

Explanation:

We can calculate the money will Kalen need to have accumulated at age forty-five by dividing the annual birthday payments by the effective interest.

DATA

Annual birthday payments = A = $40,000

Effective interest = i = 4%

Calculation

Value at age 45 = A / i + Co

Value at age 45 = (40000 / .04) + 40000

Value at age 45 = 1,040,000

Kalen will need to have accumulated money of 1,040,000 at age forty-five, just prior to his first $40,000 birthday payment.

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Mortgage payments are ____________ on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage, and ____________ is p
Marta_Voda [28]

Answer:

C. higher; less interest

Explanation:

The reason is that the interest paid in long term borrowing is more than the same amount borrowed for short time. The reason is that the interest grows with the passage of time which means:

Interest is directly proportional to Time

Greater the time greater the interest on loan.

Smaller the loan smaller the interest on loan.

Furthermore, the company on a short term loan pays lower total amount (not talking about rate) of interest and greater amount of principal amount.

This means that:

Principal amount payments is inversly proportion to Time of loan

Greater the time allowed to payback the loan then the lower would be the annual principal payments and vice verse.

Also remember that:

Mortgage payment  = Principal amount + Interest paid

This means mortgage on a short term loan will be higher because principal much more higher and interest paid are less in amount and vice versa

7 0
1 year ago
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
olga2289 [7]

Answer:

Lock-Tite Company

a Cost of direct materials used:

= $182,000

b. Cost of direct labor used:

= $150,000

c. Cost of goods manufactured:

= $466,000

d. Cost of goods sold:

= $520,000

Explanation:

a) Data and Calculations:

                                             April 30      May 31

Inventories:

Raw materials                      $43,000   $54,000

Work in process                        9,100      18,600

Finished goods                      54,000     33,200

Activities and information  for May Raw materials purchases

(paid with cash)                                     193,000

Factory payroll (paid with cash)           150,000

Factory overhead Indirect materials     16,000

Indirect labor                                         34,500

Other overhead costs                          93,000

Total overhead costs = $143,500

Sales (received in cash) 1,700,000

Cost of goods sold          520,000

Gross profit                     1,180,000

Raw materials

Account Titles             Debit      Credit

Beginning balance   $43,000

Cash                          193,000

WIP                                            182,000

Ending balance                       $54,000

Work in process

Account Titles             Debit      Credit

Beginning balance   $9,100

Raw materials        182,000

Factor payroll        150,000

Factory overhead 143,500

Finished Goods                       466,000

Ending balance                        $18,600

Finished goods

Account Titles             Debit      Credit

Beginning balance   $54,000

Work-in-Process       466,000

Cost of Goods Sold                    520,000

Ending balance                          $33,200

3 0
1 year ago
In 2008, at the depth of the great recession, the fed moved toward a zirp policy when it aimed to keep the federal funds rate be
OleMash [197]
The Fed, America's national bank, last brought rates up in June of 2006, by 25 premise focuses to 5.25%. It soon ended up turning around course, as a lodging bust offered route to the Great Recession; since December of 2008, the Fed's benchmark financing cost has been set at in the vicinity of 0.0% and 0.25%.
7 0
1 year ago
Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units), March 1 18,000 Desired inven
nevsk [136]

Answer:

Production = 27600 units

Explanation:

The number of units that must be produced during the month should be enough to meet the selling requirement for the month plus the desired level of ending inventory. Any starting of beginning inventory at the start of the month will reduce the number of units to be produced. Thus, the formula to calculate production for the month is,

Sales = Opening inventory + Production - Closing Inventory

Total sales = 7000 + 8000 + 9000 = 24000

24000 = 18000  +  Production  -  21600

24000 + 21600 - 18000 = Production

Production = 27600 units

7 0
2 years ago
When a customer buys an item of merchandise using his store credit account, a separate event is required to pay the store.??
AlekseyPX
That statement is true
Item of merchandise usually given to the customers if they're fulfilling a certain purchase. For example, when a cereal company create a marketing strategy to give a bowl as a merchandise if the customers bought two boxes of its products within a certain period of time.
8 0
1 year ago
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