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
pogonyaev
4 years ago
12

ASSUME that in 25 years you will need $500,000 for your retirement (i.e. retirement is actually 25 years away, and you want to h

ave saved $500,000). How much money would you have to put into a bank today to accumulate this if your money will earn 8% per year (assume annual compounding)?
a.73,009

b.166,365

c.211, 573

d.676,001

e.insufficient information to compute
Business
1 answer:
lara [203]4 years ago
7 0

Answer:

The correct answer is:

$73,009 (a.)

Explanation:

Future value is the accumulated compounded interest on a certain amount (present value) invested over a specified period of time.

To calculate the future value or present value, the nominal annual interest, the duration of investment and the present value or future value respectively must be known. The relationship is shown mathematically as:

FV=PV(1 + i)^{n}

or PV = \frac{FV}{(1 + i)^n}

where FV = Future value

PV = present value

i = nominal interest rate in percentage

n = number of compounding period

note: nominal interest rate is interest rate before inflation adjustments or interest rate before the effect of compounding

In this question, we are to determine the present value (PV), because the future value after 25 years is set as $500,000.

∴ PV = \frac{FV}{(1 + i)^n}

\\ PV = \frac{500,000}{(1 + 0.08)^2^5} = \frac{500,000}{6.8485} = 73,008.7

= $73,009 (to the nearest dollars)

You might be interested in
​________ is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. A.
lora16 [44]

Answer:

A. Legitimacy

Explanation:

Legitimacy  is defined as the extent to which your authority is accepted on grounds of​ competence, vision, or other qualities. This term is used mostly in the context of political science, mainly describing the right and acceptance of an authority and mostly deals with systems of governments or regimes where there are established individuals appointed authority.

5 0
3 years ago
Read 2 more answers
In exchange for manufactured goods, Native Americans in the West often traded sheep. Cattle. Furs. Guns.
Olenka [21]

The correct statement is that the Native Americans used to exchange furs for manufactured goods. Such practice of goods in exchange for goods is known as barter system. So, the correct option is C.

Barter system is one of the oldest form of trade and exchange system that has been in existence even before the invention of currency for the purpose of exchange.

<h3>Barter System</h3>

  • The barter system refers to as a system under which goods and commodities are traded for the exchange of excess goods and commodities.

  • The barter system has its own discrepancies and faults as there was no specific medium of exchange and this necessity led to the invention of currency notes and coins.

  • The Native Americans were mostly Indians and carried hunting of animals and hence the furs obtained from animals was in excess with them and as a result, it was exchanged for finished goods.

Hence, the correct option is C that the Native Americans used furs for the exchange of manufactured goods during the days of barter exchange system.

Learn more about barter system here:

brainly.com/question/1888121

4 0
3 years ago
Which of the following statements is false? A. Cash dividends should be recorded as a liability when they are declared by the bo
xenn [34]

Answer:

The answer is: B) FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.

Explanation:

FICA taxes (or payroll taxes) are based on an employee's salary. Both employees and employer pay FICA taxes for Social Security and Medicare. Employers withhold these taxes from their employees' paychecks, and then pays them to the Internal Revenue Service (IRS).

3 0
3 years ago
You are to interview an entrepreneur, then summarize the interview questions. This assignment is worth 4 grades.
Trava [24]

Explanation:

An informational interview is a wonderful way to network and a fantastic way to learn more about a career in which you are interested in possibly pursuing. And these types of interviews don't just provide solid information to those interested in corporate careers.

If what you are interested in most is starting your own business rather than working for someone else, an informational interviews is a way to find out what it takes to be a successful entrepreneur and learn more about what running your own business entails. These types of conversations can also help you make a well-informed decision about whether running your own business fits into your vision for your life and career.

4 0
3 years ago
A(n) _____ is an outside firm that specializes in the creation, production, and/or placement of the communications message and t
krek1111 [17]

Answer:

An advertising agency

Explanation:

An advertising agency is an agency that dedicates it's business to creating , planing , and managing all aspects of a client's advertising. It also specializes in promotions and marketing for its client.

Advertising can be carried out via websites, online and social campaigns, brochures, catalogs, direct mail, print ads, radio and TV commercials, and sales letters.

An advantage of an Advertisement agency is that it helps provide a creative environment that combines interesting activities with work, and great exposure too

6 0
3 years ago
Other questions:
  • How do you see your housing needs and goals changing over time?<br> This is an essay question.
    8·1 answer
  • One way to recruit companies to a state is to offer tax incentives; another is to assure them that the workforce is prepared. Wh
    11·2 answers
  • Today, your dream car costs $62,200. You feel that the price of the car will increase at an annual rate 2.2 percent. If you plan
    7·1 answer
  • Suppose a country's annual growth rate of real gdp per capita is approximately 2%. by which year would the country double its re
    8·1 answer
  • Martha worked for a marketing company with a casual atmosphere and informal culture. The company declared bankruptcy. Martha can
    10·1 answer
  • On February 3, Snap Repair Service extended an offer of $83,000 for land that had been priced for sale at $95,000. On February 2
    14·1 answer
  • An insurance company knows that the average cost to build a home in a new California subdivision is ​$92 comma 297 and that in a
    12·1 answer
  • Please select whether below is true or false?
    9·1 answer
  • The European Union (EU) has been importing beef from the U.S. for decades, but over the last decade the U.S. has ramped up its g
    11·1 answer
  • N the most commonly used land appraisal form, which is not one of the line items that are listed for adjustment?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!