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Masja [62]
4 years ago
5

You have just made your first $5,900 contribution to your retirement account. Assume you earn a return of 11 percent per year an

d make no additional contributions. What will your account be worth when you retire in 36 years? future value $ what if you wait 10 years before contributing?
Business
1 answer:
postnew [5]4 years ago
4 0

Answer:

A. The future value of $5,900 invested over 36 years will be $252,626.70

B. The Present Value of $5,900 un-invested until after 10 years, would have depleted the Value to $2,077.89

Then investing this $2,077.89 for the next 26 years will take the Future Value of our investment to $31,334.285

Explanation:

A. Using Future Value computation which states that

FV = Present Value x (1 + interest) ^no of years

Based on Question

FV = $5,900 x (1 + 11%)^36 years

= $252,626.70

B. If the contribution is delayed by 10 years,

The formula remains the same only that the variables would have changed.

n = 26 years

PV = $5,900 discounted with the interest rate as at Year 10.

= 5,900 x (1 + 11%)^-10

= $2,077.889

For not investing the $5,900 now, the value would have depleted to $2,077 by the 10th year

Now let's include this information in the Future Values computation

= $2077.889 x (1 + 11%)^26

= $31,334.285

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4 0
3 years ago
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Usimov [2.4K]

Answer:

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3 0
3 years ago
Read 2 more answers
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were
bekas [8.4K]

Answer:

Indirect materials $900 Favorable

Indirect labor $800 Unfavorable

Utilities $800 Unfavorable

Supervision $0 Neither Favorable Non Unfavorable

Total $700 Unfavorable

Explanation:

Preparation of a responsibility report for April for the cost center.

HANNON COMPANY Assembly Department Manufacturing Overhead Cost Responsibility Report For the Month Ended April 30, 2020

Controllable cost Budget Actual

Indirect materials $15,700- $14,800 =$900 Favorable

Indirect labor 21,300- 22,100 =$800 Unfavorable

Utilities 11,100- 11,900=$800 Unfavorable

Supervision 5,100- 5,100= $0 Neither Favorable Non Unfavorable

Total $53,200-$53,900=$700 Unfavorable

Therefore The responsibility report for April for the cost center will be :

Indirect materials $900 Favorable

Indirect labor $800 Unfavorable

Utilities $800 Unfavorable

Supervision Neither Favorable Non Unfavorable

Total $700 Unfavorable

7 0
3 years ago
Consider a mail order business in which employees take orders or parts from customers. Create a conceptual using the following i
adelina 88 [10]

Answer:

attached below is the Entity-Relationship diagram

Explanation:

Designing  an ER ( Entity-Relationship ) Diagram for the mail order database  using a data modelling tool

attached below is the an Entity-Relationship diagram  created using all the information provided above

3 0
3 years ago
You are trying to decide which of two automobiles to buy. The first is American-made, costs $3.0500 x 104, and travels 28.0 mile
siniylev [52]

Answer:

Both cars(American and European) must travel 8,060 kilo metres each during their lifetime for the total cost(purchase cost + fuel equivalent) to be equivalent

Explanation:

With regards to the above, the cost equation for both cars will be equated together.

Furthermore, we will convert gallons into litres while also converting miles into kilometers.

Since 1 gallon has 3.785 litres; 1 mile also has 1.609 kilo metre, hence milage of the first car in kilo metre per litre would be ;

Milage American made = [ 28 miles × 1.609 ] / 3.785

= 11.90 kilo meter per litres.

Cost of Gas per litre = $3 per gallon / 3.785

= 0.79 per litre

Gas cost per kilo metre(American made) = 0.79 per litre / 11.90

= 0.066 per km

Gas cost per kilo metre(European made) = 0.79 per litre / 19.0

= 0.042 per km

We can sum up the equation of first car which is American made( Purchase price + Fuel cost)

We can make a be the number of kilo metres where total cost for both cars would be equal.

Total cost = 317.2 + 0.066a

Also, the total cost equation - purchase price + fuel cost of European car is represented as;

Total cost = 510.64 + 0.042a

317.2 + 0.066a = 510.64 + 0.042a

Collect like terms

0.066a - 0.042a = 510.64 - 317.2

0.024a = 193.44

a = 8,060 kilo metres

Therefore, both cars(American and European) must travel each 8,060 kilo metres in their life time for the total costs( purchase cost + fuel cost) to be equivalent.

5 0
4 years ago
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