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
loris [4]
3 years ago
12

Amy​ Parker, a​ 22-year-old and newly hired marine​ biologist, is quick to admit that she does not plan to keep close tabs on ho

w her​ 401(k) retirement plan will grow with time. This sort of thing does not really interest her.​ Amy's contribution, plus that of her​ employer, amounts to ​$2,250 per year starting at age 23. Amy expects this amount to increase by 4​% each year until she retires at the age of 67 ​(there will be 45 EOY​ payments). What is the compounded future value of​ Amy's 401(k) plan if it earns 6​% per​ year?
Business
1 answer:
Otrada [13]3 years ago
4 0

Answer:

$1,213,657.685

Explanation:

For computation of compounded future value first we need to find out the present worth which is shown below:-

Present\ worth = Initial\ amount\ of\ investment\times \frac{(1 - (1 + g)^n \times (1 + i)^{-n}}{i - g}

= \$2,250\times  (\frac{(1 - (1 + 0.04)^{45}\times (1 + 0.06)^{-45}}{0.06 - 0.04})\\\\ = \$2,250 \times \frac{1-0.216245988}{0.02}

= $88,172.32636

Now, Future value = Present worth × (1 + interest rate)^number of years

= $88,172.32636  × (1 + 6%)^45

= $1,213,657.685

Therefore we have applied the above formula to determine the future value.

You might be interested in
Jeff is a member of Go Big Red, LLC. Jeff decides he does not like the color red, preferring instead the colors black and gold.
Vanyuwa [196]

Answer:

Option "D" is correct.

Explanation:

Option "D" is correct because When a person or member dissociates then the person loses the right to manage, losses the right to act, ceases from their duty of loyalty, ceases from the duty of care immediately if any event occurs after dissociation and the member has the right to find their interest. Therefore, from the given options it can be seen that the duty of care remains intact when only to that event that had occurred before the dissociation.

7 0
3 years ago
An investor who has a margin account with his brokerage firm buys 100 shares of Quick Flip Inc. Later that day, the investor sel
Hoochie [10]

Answer:

Yes  this sequence of transaction is considered as a day trade.

Explanation:

As per the definition of the day trading, <em>Day trading is defined as the purchase and sale of a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets.</em>

As per this definition, the trading has to be done such that the purchase and sale is made on the same day. As indicated in the question ,this is the case so the given sequence of transactions is a day trade.

6 0
3 years ago
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning
spayn [35]

Answer and Explanation:

The computation is shown below

1. The adjusted balance in the retained earning is shown below:

= beginning balance of retained earning + adjusted net income

where,

beginning balance of retained earning is $860,000

And, the adjusted net income is

= $68,000 × (1 - 0.35)

= $44,200

So, the adjusted balance in the retained earning is

= $860,000 + $44,200

= $904,200

2. Now the journal entry is

Inventory $68,000

      To Retained earning $44,200

      To Tax payable $23,800   ($68,000  × 35%)

(Being the adjustment of ending inventory is recorded)

It increased the inventory and along with it it also increased the equity and liabilities so the respective account is debited and credited

6 0
3 years ago
The Federal Reserve conducts a $15 million open-market purchase of government bonds. If the required reserve ratio is 20 percent
Soloha48 [4]

Answer:

$200 million

$30 million

Explanation:

When the requiredreserce ratio is 15 percent or 0.15 , then the money multiplier is (1 / required reserve ratio) or (1/0.15 = 0.67)

Now, change in money supply = money multiplier * open market purchase of government bonds.

Here , the Federal Reserve a $30 million open market purchase Of govemment bonds.

As a result of this;

Money Supply increases by (6.7 * $30 million) = $200 million.

This is the maximum amount the money supply could Increase.

Now, if the bank holds. $30 million as excess reserves, then money supply could increase by as much as $30 million. This is the smallest amount themoney supply could increase.

So, If the required reserve ratio is 15 percent the largest possible increase in the money supply that could result is $200 million- and the smallest possible increase is $30 million.

8 0
3 years ago
What is the new fourth sector of the economy
Naddik [55]

information technology

5 0
3 years ago
Other questions:
  • We would like to invest $10,000 into shares of companies XX and YY.
    11·1 answer
  • When the utility function for a risk-neutral decision maker is graphed (with monetary value on the horizontal axis and utility o
    12·1 answer
  • ‍You have just decided to add a new line to you manufacturing plant. Compute the expected loss/profit from the addition if you e
    7·1 answer
  • On January 15, Walton Company sold merchandise on account for $3,000 with terms 3/10, n/30. On January 20, the customer returns
    9·1 answer
  • A worker in which career pathway might need to memorize lines
    9·1 answer
  • Over the last two decades the combination of the internet, high definition TV, and the surround sound has revolutionized watchin
    10·1 answer
  • If you don't know how much you will spend in a particular category such as clothing, you should
    8·1 answer
  • At August 31, 2022, Carla Vista Company has this bank information: cash balance per bank $10,690; outstanding checks $840; depos
    15·1 answer
  • Who may be affected by monetary penalties imposed by the Internal Revenue Service when a Tax Professional fails to meet due dili
    13·1 answer
  • Rachel's Recordings reported net income of $280,000. Beginning balances in accounts receivable and accounts payable were $15,000
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!