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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.

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Answer:

The Supreme Court ruled that the name Coke was so well known around the world, that it is effectively a common term for the trademarked Coca Cola. If other companies try to use similar terms like Koke for other types of products, e.g. bakery items, there is a risk that the Coca Cola company would be negatively affected by that product's image since consumers might associate Koke directly to Coca Cola.

It doesn't matter if the products were low quality or not, the courts cannot determine that, what matters is that the use of the term may negatively impact another company.

7 0
3 years ago
Ten consumers were invited to participate in a discussion on motels, hotels, and resorts. a discussion leader first asked them w
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<span>These consumers and their group leader participated in a "focus group".
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8 0
3 years ago
Sydney saved $10,000 during her first year of work after college and plans to invest it for her retirement in 40 years. how much
Yuliya22 [10]
Given:
P = $10,000, the principal
t = 40 yers, time duration
r = 8% = 0.08, the interest rate
Assume that
n = 12, monthly compounding.

The value after 40 years is
A=P(1+ \frac{r}{n} )^{nt}
nt = 12*40 = 480
1 + r/n = 1 + 0.08/12 = 1.0066667
A = 10000*1.0066667⁴⁸⁰ = $242,737.71

Answer:  $242,737.71

3 0
3 years ago
Four years ago, when Cox's spouse died, Cox filed a joint tax return for that year. Cox did not remarry, but continued to provid
ArbitrLikvidat [17]

Answer:

Head of household.

Explanation:

Cox can qualify as a head of household because he provides full support for a minor child for more than six months.

Currently a head of household has lower tax rates compared to single filers or married people filing separately, head of household 22% tax rate starts at $52,851, while a single filer's 22% tax rate starts at $39,476.

7 0
3 years ago
Your investment club has only two stocks in its portfolio. $10,000 is invested in a stock with a beta of 0.4, and $40,000 is inv
pav-90 [236]

Answer:

Portfolio's beta is 1.04.

Explanation:

Portfolio's beta is the weighted average beta. So, take weightage of each stock, multiply it with the respective beta, and add the results.  

Finding Portfolio value for Weightages:

Total Amount Invested OR Portfolio value is = 10,000 + 40,000 = $50,000

Weighted Average Beta:

(10,000 / 50,000) * (.4) + (40,000 / 50,000) * (1.2) = .08 + .96 = 1.04.

Thanks!

5 0
4 years ago
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