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maw [93]
2 years ago
6

Sarah Wiggum would like to make a single investment and have ​$2.4 million at the time of her retirement in 40 years. She has fo

und a mutual fund that will earn 5 percent annually. How much will Sarah have to invest​ today? If Sarah invests that amount and could earn a 15 percent annual​ return, how soon could she​ retire, assuming she is still going to retire when she has ​$2.4 ​million?
Business
1 answer:
Ulleksa [173]2 years ago
4 0

Answer:

The correct answer for present value is 340,909.64 and for time is 13.96 years.

Explanation:

According to the scenario, the given data are as follows:

Future value(A) = $2,400,000

Rate of interest (r) = 5% or 0.05

Time period = 40 years

So, we can calculate present value by using following formula:

P = A / (( 1 + r )^t)

=  2,400,000 / ((1 + 0.05)^40)

= 2,400,000 / 7.03998871212

= 340,909.64

Now, we calculate time at 15% rate then,

A = P(1 + r)^t

where, P = 340,909.64

r = 15% or .15

A = $2,400,000

So, by putting the value we get,

$2,400,000 = 340,909.64 ( 1 + 0.15)^t

t = log(2400000/340,909.64) / log(1.15)

t = 13.96 years

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Answer:

d. Debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

Explanation:

allowance balance                           2,300 debit

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We need to adjust the allowance to our estimated uncollectible account. Currently, it has 2,300 debit balance. We need to increase it to 31,900

If we think it in two steps:

We need to credit by 2,300 to have zero balance,

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in total a credit for 34,200 needs to be done

<u>The adjusting entry will be:</u>

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3 years ago
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kicyunya [14]

Answer:

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4 0
3 years ago
Read 2 more answers
you texpect to receive a payout from a trust fund in 3 years. The payout will be for $11000. You plan to invest the money at an
MrMuchimi

Answer:

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Explanation:

For computing the number of years first we have to applied the NPER formula i.e to be shown in the attachment below:

Given that,  

Present value = $11,000

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PMT = $0

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

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Answer:

6 times

Explanation:

According to Google

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