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
The process of opening up alternatives and considering many options is called
atroni [7]
<span>This is the process of decision-making. This is something considered by everyone from top-level managers down to the first-line employees. Decision-making effects the entire business and allows for the proper courses of action to be undertaken when a challenge is faced.</span>
8 0
3 years ago
Michael anderson is starting his computer programming business and has deposited in initial investment of $15,000 into the busin
Andrej [43]
<span>The accounting equation will be affected as follows there will be increase in the assets in the form of cash and an increase in the owner's equity that is of Michael Anderson. Owners equity is the amount that the owners invest in the business excluding the withdrawal in the process and adding the net income or net loss (whatever is the result at the end).</span>
5 0
4 years ago
Based on economic and social measures of development, the United States is considered a __________ country.
harkovskaia [24]
B. Developed country
3 0
3 years ago
Read 2 more answers
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 20,000 units at a price of $340 each. Produc
enyata [817]
<h2>1.<u>Calculation of contribution margin per unit:</u></h2>

Margin per unit= Selling price per unit - Variable cost

= (340)- ( 71+41+10+17)

= 340-139

=$201

<h2><u>2. Calculation of break even units</u></h2>

Break even = fixed cost/ Contribution by margin

= ( 619950+93600)/ 201

=3550 units

7 0
3 years ago
A. O the trip to the beach<br> B. O music downloads<br> c. one hundred dollars<br> D. O a used car
densk [106]

Answer:

c

Explanation:

8 0
4 years ago
Read 2 more answers
Other questions:
  • A large dairy has decided to focus its efforts on becoming a sustainable company. It needs to redesign the packages it uses for
    10·1 answer
  • An adjustment for Prepaid Rent would indicate the amount Question 10 options: expired. on hand. originally paid. of the trial ba
    9·1 answer
  • It may be considered unethical to work part time (weekdays, ~20h/week) at night while working full time for an employer because:
    12·1 answer
  • A partial listing of costs incurred during March at Febbo Corporation appears below: Factory supplies $ 9,000 Administrative wag
    6·1 answer
  • The Flowering Desert Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity po
    12·1 answer
  • Dubberly Corporation's cost formula for its manufacturing overhead is $32,000 per month plus $50 per machine-hour. For the month
    10·1 answer
  • homeworklib Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory
    5·1 answer
  • Explain about pricing objectives
    14·2 answers
  • How to make money online without paying anything 2020
    15·1 answer
  • What is the the total fixed cost (tfc) of the firm when it produces 1 (one) unit of ouput?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!