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
natta225 [31]
4 years ago
15

John Jamison wants to accumulate $62,154 for a down payment on a small business. He will invest $34,000 today in a bank account

paying 9% interest compounded annually. Approximately how long will it take John to reach his goal? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Business
1 answer:
FromTheMoon [43]4 years ago
8 0

Answer:

It will take him 7 years.

Explanation:

Hi! We need to calculate the amount of time that it requires an investment of $34000 to reach $62154 at an interest rate of 9% annually.

By using the formula of Present Value we can isolate n:

The formula is:

PV=Ct/[(1+r)^n]

Ct= cash flow at t time

r= rate

n= period of time

To calculate how many years, we need to isolate n from the PV formula:

n=[ln(Ct/PV)]/ln(1+r)

n=ln(62154 /34000 )/ln(1+0,09)

n=7

You might be interested in
A nation's central bank makes an open market purchase of 20-year bonds. What is the short-run effect on the nation's economy
maks197457 [2]

Answer:

The answer is:

when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates

Explanation:

This is a monetary tool - open-market operation which is a situation in which when the central bank purchases securities inorder to increase the money supply and sells securities to decrease the money supply.

So when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates.

This is usually done to stimulate the economy i.e to stop the economy from slowing down.

5 0
3 years ago
Read the following scenario. Research options for payment, and use the PACED decision-making model to decide how Emmitt should p
storchak [24]

first look at the starting value then approximately affect the ending value

8 0
3 years ago
If maria gets 80 utils from consuming five​ cookies, 100 utils from consuming six​ cookies, and 120 utils from consuming seven​
Klio2033 [76]

Answer:

The correct answer is 20 Utils

Explanation:

Marginal utility is the change in the utility from an increase in the consumption of a good or service.

Example of Maria

Maria gets 80 utils from consuming 5 cookies

If Maria consumes 6 cookies, The Utils change from 80 to 100. <u>This difference of 20 is called marginal utility.</u>  (100-80=20)

3 0
4 years ago
Andersen's Nursery has sales of $318,400, costs of $199,400, depreciation expense of $28,600, interest expense of $1,100, and a
podryga [215]

Answer:

e. $42,438

Explanation:

The computation of the retained earning is shown below:

Earning after tax = Sales - cost - depreciation expense - interest expense - income tax expense

= $318,400 - $199,400 - $28,600 - $1,100 - $30362

= $58,938

The income tax expense equal to

= (Sales - cost - depreciation expense - interest expense) × tax rate

= ($318,400 - $199,400 - $28,600 - $1,100) × 0.34

= $30362

Now the retained earning equal to

= Earning after tax - dividend paid

= $58,938 - $16,500

= $42,438

7 0
3 years ago
Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club? Group of
polet [3.4K]

Answer:

Wilson previously worked as an accountant, earning $3,000 a month.

Explanation:

Implicit costs or opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.

In this case, Wilson had to quit his former job as an accountant in order to open his health club. So the salary that Wilson could have earned as an accountant would be the opportunity cost of opening his club.

7 0
4 years ago
Other questions:
  • Which decision maker tends to be instinctive rather than practical when solving problems?
    11·1 answer
  • Country Western Clothing Outfitters is considering investing in an inventory tracking system. The system will require $10,300 in
    6·1 answer
  • Fedex developed a 12-item statistical service quality indicator to measure customer satisfaction and service quality. the index
    11·1 answer
  • Jamie works as a salesperson at a car dealership. He takes his sales very seriously. After selling a car to a customer, he waits
    7·1 answer
  • M.E. Carter launched Carter Company, a professional services firm on March 1. The firm will prepare financial statements at each
    7·1 answer
  • What is the meaning of leadership and team dynamics<br>​
    15·1 answer
  • Which of the following terms describes a method for transforming contractual arrangements into a cohesive, collaborative project
    15·1 answer
  • Gi.rls jo.in to ha.ve fu.n<br> eim-gywj-msb​
    8·1 answer
  • The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October: Account Debit Raw Materials In
    5·1 answer
  • Martin Corporation’s (a C corporation) bookkeeper told the owner that she could not have all the tax information ready for the a
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!