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
kicyunya [14]
3 years ago
13

You plan to invest $600 in your savings account this year and then you intend to increase the amount that you invest by 3% each

year. If you invest in a savings account each that earns an effective annual interest rate of 7% how much money will you have in your account in 16 years?
Business
1 answer:
koban [17]3 years ago
7 0

Answer:

The correct answer is $20,211.84.

Explanation:

According to the scenario, the given data are as follows:

Payments (PMT) = $600

Interest rate = 7%

Growth rate = 3%

Time = 16 yeras

So, future value of growing annuity can be calculated by using following formula :

FV of growing annuity = Payment × ((1+ interest rate)^n - (1 + Growth rate)^n) / (Interest rate - Growth rate)

= 600 × ((1.07)^16 - 1.03^16) / (.07 - .03)

= 600 × ( 2.95216374857 - 1.6047064391 ) / (0.04)

= 600 × 33.6864

= $20,211.84

Hence, the correct answer is $20,211.84.

You might be interested in
Barnes Corporation purchased 75 percent of Nobles’ common stock for $262,500, which was acquired at book value. The fair value
Wittaler [7]

Solution:

Barnes Corporation purchased 75 percent of Nobles’ common stock

During the year, Nobles reports net income of $40,000.

Hence, 75% of net income of Nobbles is attributable to Barnes Corporation.

Barnes reports for income from subsidiary prior to consolidation

                                                          = 40,000 x 75%

                                                           = $30,000

3 0
3 years ago
I am having trouble in personal finance and need to learn how to figure out S=P(1+rt) and P=S(1+rt). Can someone assist me in le
NNADVOKAT [17]
A=p(1+rt)
A=future value
P=present value
R=interest rate
T=time
If you want to find present value
P=A/(1+rt)
If you want to find interest rate
R=[(A/p)-1]divided by t
Finally if you want to find time
T=[(A/p)-1]divided by r
7 0
3 years ago
What type of pricing involves summing the total unit cost of providing a product or service and adding a specific amount to the
Leviafan [203]

Answer:

a COST-BASED PRICING METHOD

Explanation:

COST-BASED pricing method is the type of pricing which involves summing the total unit cost of providing the product or services and adding a specific amount to the cost to arrive at the price. These costs includes all production cost in making the product available to the market and selling expenses incurred then add the desired amount of profit that the company wants to attain to come up the unit selling price of the product.

7 0
3 years ago
Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time.Which of the follo
postnew [5]

Answer: New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.

Explanation: The most consistent explanation with this observation is that new medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy. The medical evidence about correlation between the beef consumption of the people and their life expectancy would significantly affect equilibrium price and the quantity of beef bought negatively.

6 0
3 years ago
1. Describe Village Volvo's service package.
Novay_Z [31]

Answer:

See the explanation for the answer.

Explanation:

1. Village Volvo’s service package involves following 5 service package:-

a) Implicit Service:-Mechanics of Volvo provides very friendly environment with positive attitude. They acts as helping hand to customers by providing them advice/consultancy.

b)  Explicit Service:-Volvo provide high quality of repair services with a reasonable price thereby ensuring that all Volvo vehicles are running smoothly with no problems.

c)   Facilitating goods:-They provide good waiting area for their customers with services such as TV, coffee, soft drink machine newspaper.

d)  Supporting facility: - They occupy new building and keep it neat and clean. This building include all facilities as per requirement.

e)  Information:-Mechanic understand vehicle’s problem first, analyze solution and notify customer with estimated cost and time required.

2. Distinctive characteristics of a service firm illustrated by Village Volvo are:-

a)  Trust

b)  Customer comfort and satisfaction

c)  Respect

3. Village Volvo can manages its back office like a factory by adoption framework of quality management i.e

a)  Giving more importance to safety of its employees.

b)  Stressing more on security of its employees

c)  Create friendly environment for employees to work in and provide employee satisfaction.

d)  Provide a sustainable growth.

4. Village Volvo can differentiate itself from Volvo dealers from following ways:-

a)  Sustainable customer touch points.

b)  Professional mechanics/agents

c)  Through service excellence, village Volvo can create a differentiation.

3 0
2 years ago
Other questions:
  • A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could us
    11·1 answer
  • Which of the following statements is true? Group of answer choices If current Real GDP is greater than Natural Real GDP, the eco
    12·1 answer
  • How and why do congress and the president rely on administrative agencies?
    15·1 answer
  • Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
    5·1 answer
  • 1. Which of the following is not characteristic of a corporation?
    10·2 answers
  • Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2018: Operating income
    13·1 answer
  • Ordinary simple interest brings increased revenue to the lender. The general practice
    10·1 answer
  • As the Chief Marketing Office (CMO) for a $100 million product company you need to lead the development of marketing plan for th
    13·1 answer
  • in 2022 medrano manufacturing reported 3.9 billion in cash flows from operating actiivites but on ly 2.7 billion in net income w
    7·1 answer
  • All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!