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Irina18 [472]
3 years ago
7

Your grandmother recently surprised you and gave you $15,000 expressly for the purpose of starting your retirement savings. Her

only stipulation is that you have to invest the money now, and not touch any of it for the next 35 years (at which point you plan to retire). What will the value of this account be at the end of the 35 years under each of the following return assumptions (assume annual compounding)?
A. 6% per year
B. 10% per year
C. 14% per year
Business
1 answer:
qaws [65]3 years ago
3 0

Answer:

A. $115,291.30

B. $421,536.55

C. $1,471,502.67

Explanation:

The expression that describes the final amount of a $15,000 investment compounded annually for 35 years is:

A = \$15,000*(1+i)^{35}

A. 6% per year

i = 0.06

A = \$15,000*(1+0.06)^{35}\\A = \$115,291.30

B. 10% per year

i = 0.10

A = \$15,000*(1+0.10)^{35}\\A = \$421,536.55

C. 14% per year

i = 0.14

A = \$15,000*(1+0.14)^{35}\\A = \$1,471,502.67

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Cave Hardware's forecasted sales for April; May; June; and July are $ 170,000; $ 230,000; $ 190,000; and $ 260,000; respectively
PIT_PIT [208]

Answer:

accounts payable 128,500

Explanation:

To answer we must determine how much is the amount of purchases needed for the month of June.

It is not interesting the debt that is generated in previous months since they are paid in full, so in May the purchases of the month of May will already be canceled, so they will not impact the suppliers account.

June  

Purchases=  190,000 x 0.85 + (inventory cost of sales of the month) + 80,000 (inventory at the end of the month)  + 260,000 x 10% (inventory at the end of the month) = 276,500,

But according to the company's policy at the beginning of the month the inventory was equal to

80,000 + 190,000x10% (June sales) = 99,000

So the purchases necessary to meet the costs of sale and comply with the policy of the owner at closing is the same

267.500(inventory needed) - 99.000( initial existence) = 168.500

<u>the record will be </u>

Inventory      168,500

Cash                           43,810

accounts paylable    124,690

6 0
3 years ago
Mary worked on the assembly line at an automobile assembly plant. People weren't buying as many cars, and she was laid off. How
ahrayia [7]

We will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

Basically, the cyclical unemployment is the unemployment experience as a result of economic upturn and downturn.

The cyclical type of unemployment are mostly experienced during economic recessions.

It is obvious that people were not buying as many cars because of economic downturn.

Therefore, in conclusion, we will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

Learn more about this here

<em>brainly.com/question/8865266</em>

7 0
3 years ago
You take out an installment loan to purchase a fishing boat costing $3,900. You make a down payment of $1,000 and finance the ba
Mazyrski [523]
APR formula = (Finance charges/total balance) x 365

Purchase price = $3,900
Downpayment = $1,000
Total financed = $2,900
Payments (36m) = $100.53
Total amount = $3,619.08

APR formula = (Finance charges/total balance) x 365
APR = ($3619.08/2900) x 365
APR = 4.5%
6 0
3 years ago
Maplewood Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 Maplewood has recei
Anika [276]

Answer:

$8.1

Explanation:

Variable cost to be incurred for the offer = ($420,000/70,000) * 3,000

Variable cost to be incurred for the offer = $6 * 3,000

Variable cost to be incurred for the offer = $18,000

Additional Fixed cost = $6,300

Total Cost incurred for the offer = Variable cost to be incurred for the offer + Additional Fixed cost

Total Cost incurred for the offer = $18,000 + $6,300

Total Cost incurred for the offer = $24,300

Unit Sales Price (Break even) = Total Cost incurred for the offer / 3,000 units

Unit Sales Price (Break even) = $24,300 / 3,000 units

Unit Sales Price (Break even) = $8.1

8 0
3 years ago
Carlos manages a grocery store in a country experiencing a high rate of inflation. he is paid in cash twice per month. on payday
Luda [366]

This is an example of the Shoe-leather effect of inflation

Explanation: Here Carols faces a lot of inconvenience in minimizing the cash holdings he has in the fear of it losing its value in the long term. So, he pays a steep fee to convert which we can call as shoe leather costs.

4 0
3 years ago
Read 2 more answers
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