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anzhelika [568]
3 years ago
8

At the end of this month, Les will start saving $200 a month for retirement through his company's retirement plan. His employer

will contribute an additional $.50 for every $1.00 that he saves. If he is employed by this firm for 30 more years and earns an average of 8.25% on his retirement savings, how much will he have in his retirement account 30 years from now?
a. $589,406.19 b. $401,005.25 c. $540,311.67 d. $470,465.70 e. $503,289.01
Business
1 answer:
aleksklad [387]3 years ago
7 0

Answer:

Amount per month (A) = $200 + $0.50 x $200 = $300

Interest rate (r) = 8.25% = 0.0825

Number of years (n) = 30 years

No of compounding periods in a year (m) = 12

Future value = ?

FV = A(1 + r/m)nm - 1)

               r/m

FV = $300(1 + 0.0825/12)30x12 - 1)

                       0.0825/12

FV = $300(1 + 0.006875)360 - 1)

                   0.006875

FV = $300(1.006875)360 - 1)

                 0.006875

FV = $300 x 1,568.218999

FV = $470,465.70

The correct answer is D

Explanation:

In this case, there is need to apply the formula for future value of an ordinary annuity on the ground that compounding is done monthly. In the formula, monthly deposit (A) is $300, number of years is 30 years and interest rate (r) is divided by 12 because compounding is done on monthly basis. The number of years is also multiplied by the number of times interest is compounded in a year.

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Describe how the biodiversity crisis extends throughout the hierarchy of biological organization.
daser333 [38]

Answer:

Explained below:

Explanation:

It is really true that biodiversity crisis is continuously increasing as many biological groups reported that some varieties of species started to speedily die and specimen report shows that there have been five periods of mass abolition in history with much large scales of species destruction, and the rate of species extinction now is comparable to those times of mass destruction. Definitely, three human actions have a notable impact; the decline of habitat, the entrance of exotic species and advance accumulation.

4 0
3 years ago
Define black hole.......​
larisa [96]

Answer:

hope this helps

Explanation:

A black hole is a place in space where gravity pulls so much that even light can not get out.

8 0
3 years ago
On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

6 0
3 years ago
Imagine a company that sells hammers charges customers $10 for each hammer. To make the hammer the company spends $7 on input co
Luda [366]

Answer: Production Method

Explanation: Gross domestic product, also known as GDP, calculates the total value of products and sevices that are produced in an economy. This in turn measures the total income of a country.

The method that applies in this scenario is the production method. This method focuses on goods, by looking at its final value after deducting the input costs, also known as intermediate goods. Input costs (or intermediate goods) are the cost of materials that were used to make the final product, i.e. the production costs. Once the input costs are deducted from the total value of the goods , what remains becomes the actual income of the goods, the final cost, which is then added to GDP.

7 0
3 years ago
A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return
Degger [83]

Answer:

Therefore, the internal rate of return is lower than the expected return, for this the project must be rejected

Explanation:

Solution

Given that

The cash flow of a project consists of the following amount from year 0 to 3 = −$161,900, $60,800, $62,300, and $75,000

The rate of return required = 13%

Now,

Let the Internal rate of return be y%

Thus,

At internal rate of return, the value of present inflows is the same as the value of present outflows.

So,

Internal rate of return = Value of present inflows = Value of present outflows

=161900 =60800/1.0y +62300/1.0 y ^2 + 75000/ 1,0 y^3

Therefore, y = internal rate of return 10.41%

7 0
3 years ago
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