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S_A_V [24]
4 years ago
10

You just graduated and landed your first job in your new career. You remember that your favorite finance professor told you to b

egin the painless job of saving for retirement as soon as possible. You decide to put away $5,000 at the end of each year in a Roth IRA. Your expected annual rate of return on the IRA is 6%. The amount you will have accumulated at retirement after 40 years of investing is closest to:
Business
2 answers:
kolezko [41]4 years ago
7 0

Answer :

Money accumulated at retirement after 40 year = $773,809.83

Explanation :

As per the data given in the question,

Present value of future deposits = $5,000 ÷ (1+6%) + $5,000 ÷ (1+6%)^2+... +$5,000 ÷ (1+6%)^40

= $75,231.48

Future value of deposit is

= Present value × (1 + interest rate)^number of years

= $75,231.48 × (1+6%)^40

= $773,809.83

Hence,  Money accumulated at retirement after 40 year = $773,809.83

Zolol [24]4 years ago
6 0

Answer:

The answer is  $7,73,810

Explanation

Solution

To solve this question, we use a table or tabular form shown below:

Rate (I)           Rate per period                         0.06

NPER            Total no of payments                 40

PMT               Payment per second                 $5,000

PV                 Present Value                             $0.00

TYPE             Ending (0), Beginning (1)            0

Future value                                                    $ 7,73,810

                     (-FV (rate, nper, pmt, pv, type))

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3 years ago
On March 29, customers who owe $13,981 on account to Sonic Sales Company submit payments of $7,687. Required: Journalize this ev
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Answer:

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Explanation:

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3 years ago
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8 0
4 years ago
Stock Y has a beta of 1.4 and an expected return of 14.7 percent. Stock Z has a beta of .7 and an expected return of 8.7 percent
jek_recluse [69]

Answer:

Stock Y is undervalued  because the reward-to-risk ratio for Stock Y is higher than the SML

Stock Z is overvalued  because the reward-to-risk ratio for Stock Z is lower than the SML

Explanation:

From the question,

It is given:

FOR STOCK Y

Stock expected return = 14.7%

Stock beta = 1.4

risk-free rate is 5.2%

The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.

Therefore

Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4

= 6.79%

FOR STOCK Z

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Stock beta = 0.7

risk-free rate is 5.2%

Therefore

Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7

= 5%

FOR SML

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Risk rate = 5.2

Therefore

Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2

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Stock Z is overvalued  because the reward-to-risk ratio for Stock Z is lower than the SML

3 0
4 years ago
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Frank is a 60- year-old man who is well-loved in his community since he was a boy. He is someone who is outgoing, a party lover,
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Answer:

I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.

Explanation:

I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.

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