Answer: he should invest $16129 today.
Step-by-step explanation:
Let $P represent the initial amount that should be invested today. It means that principal,
P = $P
It would be compounded annually. This means that it would be compounded once in a year. So
n = 1
The rate at which the principal would be compounded is 7.6%. So
r = 7.6/100 = 0.076
The duration of the investment would be 6 years. So
t = 6
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years.
A = 25000
Therefore
25000 = P(1+0.076/1)^1×6
25000 = P(1.076)^6
25000 = 1.55P
P = 25000/1.55
P = $16129
Answer:
For Kyle, a Roth IRA would be a better choice if he wants to pay less tax, since the tax will be collected when he contributes funds.
Explanation:
If kyle falls in higher tax bracket when he retires, then Roth IRA is the best option.Roth IRA is an individual's retirement saving account that offers valuable tax benefits, that is the money invested within the Roth IRA is tax free and withdrawal in retirement will be tax free too.That is you contribute money now that you'll pay income taxes on this year, but the withdrawal will be tax free during retirement.
Answer:
16
−81
Step-by-step explanation:
Hope this is correct and it helps :)
Answer:
Week 8
Step-by-step explanation:
For each week add 3 miles until you reach 26 miles
Week 1:5
Week 2:5+3=8
Week 3:8+3=11
Week 4:11+3=14
Week 5:14+3=17
Week 6:17+3=20
Week 7:20+3=23
Week 8:23+3=26
Hope this answers your question :)
