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sasho [114]
3 years ago
6

You want $1.5M to retire in 45 years. You have $15,000 today. If you can deposit the funds in a money market account which earns

4.5% interest per year, and say you plan to make yearly deposits, how large should the annual deposits be? Group of answer choices
Business
1 answer:
sleet_krkn [62]3 years ago
4 0

Answer:

$10,020

Explanation:

The computation of the large amount that should be deposited is shown below:

Future value of annuity is

= Annuity × [(1+rate)^time period-1] ÷ rate

= Annuity × [(1.045)^45-1] ÷ 0.045

= Annuity  × 138.8499651

Future value = Present value (1  +interest rate)^number of years  

where

= $15,000 × (1.045)^45

Now

The  total future value: is

$1,500,000 = $15,000 × (1.045)^45 + Annuity × 138.8499651

$1,500,000 = ($15,000 ×7.24824843) + Annuity × 138.8499651

Annuity  = ($1,500,000 - $108,723.7264) ÷ 138.8499651

= $10,020

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3 years ago
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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
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Answer:

1. Dr Raw materials inventory $175,000

Cr Cash $175,000

2. Dr Goods in process inventory $138,000

Cr Raw materials inventory $138,000

3. Dr Factory overhead $7,000

Cr Raw materials inventory $7,000

Explanation:

Preparation of journal entries transactions for the month of May.

1. Dr Raw materials inventory $175,000

Cr Cash $175,000

2. Dr Goods in process inventory $138,000

Cr Raw materials inventory $138,000

($26,000+$175,000-$7,000-$56,000)

3. Dr Factory overhead $7,000

Cr Raw materials inventory $7,000

4 0
3 years ago
The AIAP is designated to achieve What?
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It’s not a stand-alone program
6 0
3 years ago
When the price is $12 the quantity demanded is 50. When the price increases to $24 the quantity demanded decreases to 30. Calcul
Allushta [10]

Answer:

PED = -0.4 or |0.4| in absolute terms

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

  • % change in quantity demanded = [(30 - 50) / 50] x 100 = -40%
  • % change in price = [($24 - $12) / $12] x 100 = 100%

PED = -40% / 100% = -0.4 or |0.4| in absolute terms

the demand is price inelastic since |0.4| < 1

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6 0
3 years ago
Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $14.55 that is immediately used.
Nataly [62]

Answer:(1) Dr: petty cash $350, Cr: Cash $350, (2) Total delivery expense $16, Total Milleage expense $71, Total postage expense $65.55, Total merchandise inventory( Transportation -in) $42.4, Total office supplies $81.32, Petty Cash Balance $204.67 (3) a) Dr : Expenses $326.29, Cr : Cash $326.39 (b) Dr: petty cash $490, Cr: Cash $490

Explanation:

Journal entry to establish the petty cash fund

Dr : petty cash $350

Cr: : Cash $350

Journal entry to record the reimbursement

Dr : Expenses $326.39

Cr: Cash $326.39

Journal entry to record the increase in fund amount

Dr:petty cash $490

Cr: cash $490

Total delivery expenses $16

Total mileage expenses $71

Total postage expenses $65.55

Total merchandise inventory (Transportation -in) $42.4

Total office supplies $81.32

Amount received for reimbursement $326.39

Petty Cash Balance $204.67

7 0
3 years ago
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