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
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

You might be interested in
WILL GIVE BRAINLIEST!! Answer the following 3 questions A, B, or C
True [87]

Answer:

B

C

A

Explanation:

7 0
3 years ago
Read 2 more answers
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year
BigorU [14]

Answer:

a. Quick ratio for current year =2.16

   Quick ratio for current year =2.05

b. Improving

Explanation:

A.

To find quick ratios we need to divide current assets by current liabilities

Quick Ratio = \frac{currentasssets}{currentliabilities}

Current assets                         Dec 31 current year      Dec 31 previous year

Cash                                                  $1,430                                $1,710

Temporary investment                    $3,120                               $3,840

Accounts receivable                        $7,150                               $2,610

Inventory                                         $2,340                                $2,300

Total current assets                      $14,040                              $10,460

Current liability                              

Account payable                            $6,500                                $5,100

Quick Ratio                                     \frac{14040}{6500 }                                 \frac{10460}{5100}

Quick Ratio                                      2.16                                  2.05

                         

B.

As you can see above that in the previous year Nabors company had a quick ratio of 2.05 but it has slightly increased by 0.11 in the current year.  

3 0
3 years ago
Read 2 more answers
Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of you
qwelly [4]

Answer:

Following are the solution to the given point.

Explanation:

Calculate each fund's Sharpe ratio. It Fund is the best danger reward with the highest Sharpe ratio.

\text{Sharpe Ratio} = \frac{\text{(Fund return - \text{risk free return)}}}{Volatility}\\\\\to Fund A= \frac{(10\%-4\%)}{10\%} = 0.6\\\\\to Fund B= \frac{(15\%-4\%)}{22\%} = 0.5\\\\\to Fund C = \frac{(6\%-4\%)}{2\%}=1.0\\\\

Fund C consequently offers the best risk-benefit. and without understanding client risk preference, we will advise Fund C for any clients. If a client wants to have a 22 percent minimum volatility, we'll nevertheless propose that Fund C instead of Fund B is available, because an investor can take risk-free rates to the degree that the total portfolio volatility stands at 22 percent and deposit it in Fund C.

8 0
3 years ago
Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the r
kobusy [5.1K]

Answer:

of course

Explanation:

This candidate may criticize and argue that our right to breathe and the future of our planet require real regulation instead of this type of government policy based on money.

8 0
3 years ago
For retirement, identifying which of the following most correlates with generating income for retirement? A. Tangible assets B.
chubhunter [2.5K]

Answer:

it should be A

Explanation:

it generating income for retirement

6 0
3 years ago
Other questions:
  • Mary, Thomas, and Franklin form an LLC for the purpose of running a restaurant. Each invests $10,000 into the LLC. Two weeks aft
    15·1 answer
  • Consumer surplus
    14·1 answer
  • Akira's uncle is about to open a car dealership. His property can accommodate a total inventory of 264 vehicles. The auto manufa
    12·1 answer
  • What do you call the second year of high school?
    10·1 answer
  • Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs
    9·1 answer
  • Insider trading is seen as a threat to the functionality of the financial markets. Write a short paragraph describing why this i
    13·1 answer
  • Cell Phones for Soldiers is a nonprofit organization with a long-term commitment to one cause. Suppose that FedEx volunteered to
    9·1 answer
  • Which factors influence changes in consumer demand?
    11·1 answer
  • The physical distribution concept seeks to minimize the cost of distribution for a given customer service level.
    10·1 answer
  • Several managers were having a budget meeting. At first, they were all focused on the issues, though there was mild disagreement
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!