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Nikitich [7]
2 years ago
10

To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job

and make five additional deposits, one at the end of each year for 5 years. Your first deposit will be made at the end of the first year. If all the money is deposited in a bank that pays 7% interest, how much must your annual deposit be at the end of each year to get $5,000 at the end of 5 years?
Business
1 answer:
elena55 [62]2 years ago
7 0

Answer:

He needs to deposit each year $747.38

Explanation:

Giving the following information:

To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year for 5 years. Your first deposit will be made at the end of the first year. The money is deposited in a bank that pays 7% interest.

First, we need to calculate the final value of the first $500 that the father gave him:

FV= PV*(1+i)^n

FV= 500*(1.07)^5=

FV= 701.28

Now, we have to calculate the annual deposit required:

Difference= 5,000 - 701.28= 4,298.72

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (4,298.72*0.07)/[(1.07^5)-1]

A= $747.38

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Answer:

Explanation:

Horizontal analysis of financial statements  is a system of comparing each item of financial statement in a previous year to the current year with each line item analysis expressed in a horizontal pattern for clear comparison.

The change in growth is calculated by deducting the previous year's value of an item of the financial statement from the current year while the percentage growth is calculated by calculating the growth value as a percentage of the previous year value

                          2022         2021         Change     % Change

Net sales         639,400    578,200       61,200     10.6%

Cost of goods  464,800   433400        31,400      7.3%

Gross profit      174,600    144,800       29,800      20.6%

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7 0
3 years ago
A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for h
Mrrafil [7]

Answer:

$797,837

Explanation:

the first withdrawal is $50,000

the second is $51,500

and so on...

the formula that used to solve the interest rate earned by the annuity is:

$50,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / [(1 + i)³⁰ x (i - 3%)]} x (1 + i) = $5,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

we start to simplify the equation by cancelling  {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

[$50,000 x (1 + i)] / (1 + i)³⁰ = $5,000

now we cancel $5,000 on each side:

[10 x (1 + i)] / (1 + i)³⁰ = 1

now lets take away (1 + i):

10 / (1 + i)²⁹ = 1

things get a little bit more simple now:

10 = (1 + i)²⁹

²⁹√10 = ²⁹√(1 + i)²⁹

1.082636734 = 1 + i

i = 1.082636734 - 1 = 0.082636734 = 8.2636734%

now we replace i in any equation:

= $50,000 x {[(1 + 0.082636734)³⁰ - 1.03³⁰] / [(1 + 0.082636734)³⁰ x (0.082636734 - 0.03)]} x (1 + 0.082636734)

= $50,000 x  {[10.82636738 - 2.427262471] / [10.82636738 x 0.052636734]} x (1 + 0.082636734)

= $50,000 x  {8.399104909 / 0.56986462} x (1.082636734)

= $50,000 x 14.73877236 x 1.082636734

= $797,837

8 0
3 years ago
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to Lou who, in turn, indorses it to Mona, wh
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Answer:

a. Jake, Kim, or Lou.

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A promissory note is a note that should be signed with written promise in terms of paying some specific amount to the note owner on a specifiic date or on demand.

Since in the question it is mentioned that Jake who is a maker and pay to Kim and then it would endorse to Lou

So here the Mona should collect the payment from the above three parties

hence, the correct option is A.

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It's the last one, "Timeline and resources"

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