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
bagirrra123 [75]
3 years ago
13

You have had $5,500 in a Roth IRA account for 3 years earning 1.2% annual interest. During those 3 years, the rate of inflation

was 1.8% per year. Did the purchasing power of your Roth IRA dollars increase or decrease over 3 years.
Business
1 answer:
erma4kov [3.2K]3 years ago
8 0

Answer:

Loss in purchasing power =$(96.67)

Explanation:

To determine the change in purchasing power, we will compare the value of the IRA after 3 years to its purchasing power in term the prices there years ago.

The value of 5,500 in 3 years time = 5,500 × 1.012^3 = 5700.385

The purchasing power of 57,000.38 in term's of the price 3 years ago

=5700.385504 × 1/(1.018^3)

= $5403.32

Change in purchasing power =  $5403.32 -  $5,500= $(96.67)

Loss in purchasing power =$(96.67)

You might be interested in
Great Kids Co. began providing day care for the children of employees of a large corporation on January 15 for an agreed monthly
nirvana33 [79]

Answer:

A. A credit to Child Care Fees Earned of $4,500.

Explanation:

The journal entry to record this given transaction is shown below:

Cash A/c Dr $4,500

       To Child Care Fees Earned A/c $4,500

(Being the fees earned is recorded)

Since the payment is received that means cash balance is increased so we debited the cash account and credited the child care fees earned account.

The monthly fee is $9,000 but we have to compute for 15 days, so it would be

= $9,000 ÷ 2

= $4,500

7 0
3 years ago
Help pleaseee!
Alika [10]

Answer:

B-reserved requirements

Explanation:

5 0
3 years ago
Read 2 more answers
Nettie can produce 8 cupcakes or 4 hamburgers in an hour. becky can produce 4 cupcakes or 8 hamburgers in an hour. they each can
Alex73 [517]
The correct answers are four and four (4,4).

Why? Since Nettie was able to produce 8 cupcakes and 4 hamburgers within an hour, which gives her 8 cupcakes and 4 hamburgers available for trading while Becky was able to produce 4 cupcakes and 8 hamburgers in an hour. When they traded each other for a certain food its value will be equal to the opposite food, like 1 hamburger is equivalent to 1 cupcake, Nettie consumed 4 hamburgers, while Becky consumed 4 cupcakes, which is why they both consumed 4 pieces of food each after their trade.
4 0
2 years ago
How was Samsung able to go from a copycat brand to an innovation leader?
xeze [42]
They still are a bad brand no offense
6 0
3 years ago
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble, a maker
AfilCa [17]

Answer:

a. factory overhead cost

b. factory overhead cost

c. factory overhead cost

d. direct labor cost

e. direct materials cost

f. direct labor cost

g. factory overhead cost

h. direct materials cost

i.  direct materials cost

j. factory overhead cost

Explanation:

Direct Material Costs and Direct Labor Costs are easily traceable to the cost object whilst its difficult to trace Factory Overhead Costs to the cost object.

8 0
3 years ago
Other questions:
  • The use of accounting information as a tool to communicate without providing any influence that would sway a decision is called
    6·1 answer
  • you currently have $5600. First united bank will pay you an annual interest rate of 9.1, while second national bank will pay you
    13·1 answer
  • Walton Company paid $94,000 to purchase a machine on January 1, 2017. During 2019, a technological breakthrough resulted in the
    6·1 answer
  • Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates
    15·1 answer
  • Linda, a manager at Addoso Inc., is writing a proposal on how a new work benefit will affect employees' attitude toward their jo
    6·2 answers
  • Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one
    5·2 answers
  • On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business.
    5·1 answer
  • Strategic management
    5·1 answer
  • What is a safe username?
    6·2 answers
  • If Randy invests $15,000 at a 9% interest
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!