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MatroZZZ [7]
4 years ago
10

Assume that you contribute $300 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $

500 per month for 20 years. Given a 9 percent interest rate, what is the value of your retirement plan after 45 years
Business
1 answer:
dmitriy555 [2]4 years ago
7 0

Answer:

Total FV= $2,555,406.98

Explanation:

Giving the following information:

Investment 1:

Monthly deposit= $300

Number of months= 12*45= 540

Interest rate= 0.09/21= 0.0075

Investment 2:

Monthly deposit= $500

Number of months= 12*20= 240

Interest rate= 0.09/21= 0.0075

To calculate the future value, we need to use the following formula on each investment. <u>I separated into two to simplify calculations.</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

<u>Investment 1:</u>

FV= {300*[(1.0075^540) - 1]} / 0.0075

FV= $2,221,463.54

<u>Investment 2:</u>

FV= {500*[(1.0075^240) - 1]} / 0.0075

FV= $333,943.44

Total FV= $2,555,406.98

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Federal obligations usually issued for maturities in excess of five years are called: _______
valentinak56 [21]

Answer: b. Treasury Notes

Explanation:

The question is a bit confusing to answer unless a mistake has been made in it.

Treasury Notes are Federal obligations that mature between 2 - 10 years so would be the correct answer for this question as this would include bonds in excess of five years till the 10th year.

Treasury Bonds on the other hand mature after 10 years.

If there is a mistake in the question and you instead meant to write 10 years instead of 5, the answer would be Treasury Bonds.

If not, the answer is Treasury Notes.

5 0
3 years ago
Eve's Apples opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability poli
Nutka1998 [239]

Answer: 18,000

Explanation:

Liability policy:

Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ liability\ policy}{Period\ of\ policy}

Insurance\ expense\ per\ month=\frac{36,000}{18}

                                                            = 2,000

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 2,000

= 24,000

Prepaid insurance balance for liability policy on 31 Dec, 2018:

= Prepaid Insurance for liability policy - Insurance expense 2018

= 36,000 - 24,000

= 12,000

Crop damage policy:

Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ crop\ damage\ policy}{Period\ of\ policy}

Insurance\ expense\ per\ month=\frac{12,000}{24}

                                                            = 500

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 500

= 6,000

Prepaid insurance balance for crop damage policy on 31 Dec, 2018:

= Prepaid Insurance for crop damage policy - Insurance expense 2018

= 12,000 - 6,000

= 6,000

Therefore,

Total prepaid insurance balance on 31 Dec 2018:

= Prepaid insurance balance for liability policy on 31 Dec, 2018 + Prepaid insurance balance for crop damage policy on 31 Dec, 2018

= 12,000 + 6,000

= 18,000

7 0
3 years ago
Catherine is married and a mother of two children. She has decided to forego her own career to stay home with her children until
Taya2010 [7]

Answer:

Traditional Women

Explanation:

The reason is that the women who take the responsibility of taking care of their house and children represents the traditional class of women. These women are also known as house wife in our society. In this question, Catherine takes the role and responsibility because she takes care of her family and house related issues which matches the role and responsibilities of a traditional women so this is the Traditional women is the right answer.

5 0
4 years ago
Johnson &amp; Johnson has a reputation for being a company with high levels of corporate social responsibility to all of its sta
Lera25 [3.4K]

1. Organizations have the knowledge and resources to do good in the community, so they are responsible for helping others.

Explanation:

<u>Companies that exist for the sake of making profits are prone to do it at the expense of other social and economic structures</u>. Thus, social responsibility is an important part of running a big firm with massive resources that can be put to this use.

Companies have think tanks, monitory and administrative advantages to do Social work that many organisations simply can't and if they do it,<u> it produces greater trust among the public and clientele too, along with a loyal worker base too.</u>

3 0
3 years ago
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account,
elixir [45]

Answer:

Follows are the solution to this question:

Explanation:

Formula:

\text{Asset cash flow = creditors cash flow + equity cash flow}\\\\ \text{creditors cash flow = payment of interest-net new loans}\\\\ \text{Cash flow to lenders = interest charged}-( LTD_{end}-LTD_{beg}) \\

\text{Cash flow} =100000 -(1700000- 1460000) = - \$ 140,000 \\

\text{Shareholder cash flow = paid dividends-net new shares} \\\\\text{Cash flow = interest paid - (Common} + APIS_{end})- \text{(Common +} APIS_{beg}))\\\\

\text{Cash flow to the inventory holders}=  157000 -(162000 +3070000))-(152000+2770000) = - \$ 5997000

\text{Asset cash flow = - \$ 6,137,000}

6 0
3 years ago
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