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
Kipish [7]
3 years ago
13

You will get some practice calculating FV and FVA's that we learned about in this chapter for this DB, while also hopefully show

ing you something that could help you in your personal life!. Here try using the future value tables to show yourself the difference that waiting 10 years to start saving for retirement can make. Assume you are 27 and start saving $3,000/year. You do this for 10 years before circumstances prevent you from saving any more, but the money that has amassed will continue to sit and earn 10%, like it has from when you first started saving, until you retire at age 67 (another 30 years). So you will first use the FVA (Future Value of an Annuity) of $1 chart for $3,000 at 10% for 10 years; then use that resulting number in a FV of $1 chart for 30 years (periods) at 10% to see how much you would have at retirement. Next, assume you wait until age 37 to start saving, but no circumstances cause you to stop (A very rare occurrence in real life! Unexpected things almost always will happen to derail your best saving intentions!). SO for this one, you will use just the FVA chart, still using $3,000 and 10%. Show your work and results, as well as comments. Are you surprised by the results? I will comment on this later in the week after everyone has posted. Original posts should contain a minimum of 120 words.
Business
1 answer:
Paladinen [302]3 years ago
5 0

Answer:

first case:       $834,290.82

second case: $493,482

Because the 10 years capitalized for more time the magic of compounding interest can do his work

Explanation:

<u>first case:</u>

and annuity of 3,000 for 10 years

and then a lump sum for 30 years:

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C 3,000

time 10 year

rate 10% = 0.1

3000 \times \frac{(1+0.1)^{10} -1}{0.1} = FV\\

FV $47,812

Principal \: (1+ r)^{time} = Amount

Principal 47,812.00

time 30.00

rate 0.10000

47812 \: (1+ 0.1)^{30} = Amount

Amount 834,290.82

<u>Second case:</u>

annuity of 3,000 for 30 years:

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C 3,000

time 30

rate 0.1

3000 \times \frac{(1+0.1)^{30} -1}{0.1} = FV\\

FV $493,482

You might be interested in
According to the circular flow model of the market system, when resource-owners' money income is rising, then the costs to busin
mojhsa [17]

Answer:

(B) False

Explanation:

In the circular flow, the raw material that is basic resource provider gets to increase his income which means that his profit margin is high thus sales value is high and therefore, the result will be higher cost for the producers using such resources.

Since the cost to producers is revenue to resource owner's, this means high revenue to owner's and high cost to producers.

Thus, above stated statement is

(B) False

5 0
3 years ago
On January 1, Bloomingdale, Inc. borrows $92,000 from First Estate Bank. The loan is due in one year along with 4% interest. The
Thepotemich [5.8K]

Answer:

B. $ 920 increase liabilities, increase expenses

Explanation:

The interest expense for the entire duration of the loan (1 year) may be determined as the product of the interest rate percentage on the principal amount borrowed.

As such, interest for the duration of the loan

= 4% * $92,000

= $3680

As at the end of the first quarter (March 31), amount of expense to be accrued

= 1/4 * $3680

= $920

To account for this,

Debit Interest expense $920

Credit Accrued Interest $920

Hence Expense increase as well as liability in form of accrued expense.

8 0
4 years ago
Warm weave inc., a manufacturer of woolen garments, spends heavily on advertising during the months of december, january, and fe
mars1129 [50]

This is a flighting schedule method, which is where the normal ad schedule is targeted in a specific period of time and no ads are run the rest of the year (known as the cessation period).

8 0
3 years ago
Read 2 more answers
Government purchases include government spending on.
valina [46]

Government purchases include government spending on the following:

  • Infrastructure projects
  • Paying the civil service and public service employees
  • Buying office software and equipment
  • Maintaining public buildings.

<h3>What is government spending?</h3>

Government spending is classified as follows:

  • Mandatory spending
  • Discretionary spending
  • Payment of interest on debts.

Thus, government purchases include government spending for the <u>purchase of goods and services</u>.

Learn more about government spending at brainly.com/question/25125137

4 0
2 years ago
Consider your current uses of tap water. Think about some of the ways that you use water that are beyond what is necessary to su
ahrayia [7]

Answer:

a). A. decrease the length of your showers

    B. turn water off while brushing your teeth

b). does

Explanation:

When the cost of the tap water increases and it gets triple, following some of the practices can help reduce the cost of the tape water used and it will also reduce the consumption of water. Some of the changes that I can include are:

-- I can lower the length of the shower so that less amount of water is used and more water is saved.

-- It is a good habit to turn off the water while we are brushing and only turn on the tape or open the tape whenever it is necessary. In this way we can prevent wasting water and reduce our water consumption.

Thus we can say that the consumption of the tape water does obey the law of demand.

5 0
3 years ago
Other questions:
  • Provide your opinion why workplace appearance does or does not affect work performance?
    13·1 answer
  • A company estimates that it will sell 100,000 units of finished goods in March. Each finished good requires 5 feet of raw materi
    14·1 answer
  • Problem 3.10 Net Present Value. Assume that your firm wants to choose between two project options: Project A: $500,000 invested
    5·1 answer
  • Shangrilah Sandals is a manufacturing firm in a developing country, where it routinely uses grease payments to local officials t
    15·1 answer
  • Regarding competitive strategies, companies seek efficient manufacturing and productive employees to achieve ___________.
    13·1 answer
  • A couple saves $500.00 per month (end of the month) for 40.00 years. They can earn a 6.00% annual interest with monthly compound
    11·1 answer
  • Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produc
    14·1 answer
  • A tip of $10 is best for which kind of service?
    15·2 answers
  • Who is Mark Edward Fischback?
    13·2 answers
  • Which is not a responsibility of a human resources manager? Choose the answer.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!