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
Alenkinab [10]
3 years ago
8

You just won a lottery prize of $95,000. While you plan to use some of the sum to pay off your student loans, you would like to

have a total of $100,000 saved in an account in 8 years. After paying off some of the principal on your student loans, you plan to deposit the money left over in an account earning 2% interest, compounded annually. How much money can you spend today and still achieve your goal of having $100,000 at the end of 8 years?
Business
2 answers:
Evgesh-ka [11]3 years ago
8 0

Answer:

Principal Amount needed to get $100000 at end of 8 years = $ 85470

Prospective Spending out of $ 95000 prize = $9530  

Explanation:

Compound Interest Total Amount formula with Principal & 'n' period of times, compounding 't' times in a time period n.

A = P [1 + r/n] ^ nt

100,000 = P [1+ 0.02 / 1] ^ (8x1)

100,000 = P [(1.02)^ 8]

100,000 = P [1.17]

P = 100,000 / 1.17

P = $ 85470  [Principal Amount needed to get $100000 at end of 8 years]

Prospective Spending  = Prize Amount - Principal amount needed

95000 - 85470

= $ 9530

8_murik_8 [283]3 years ago
7 0
You put 85,000 into your account for 8 years and add $1250 each year into your account. At the end of the 8 years you will have a 11
You might be interested in
Break-Even Analysis Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websi
kogti [31]

Answer:

Break-even point= 7,900 new costumers

Explanation:

Giving the following information:

Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers.

In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5.

Break-even point= fixed costs/ contribution margin

Fixed costs= 1,659,000

Contribution margin= (16*20)-(5*22)= 210

Break-even point= 1,659,000/210= 7,900 new costumers

6 0
3 years ago
What happens to consumption and investment spending when the Federal Reserve decreases the money supply
Illusion [34]

Answer: Consumption and investment spending decrease or falls.

Explanation:

When the Federal Reserve decreases the money supply, this will lead to a fall in the consumption and investment spending. This is a contractionary policy by the government which is typically used to curb inflation.

Since there's reduction in money supply, there'll be less money in circulation and hence, decrease in consumption and investment expenditure.

3 0
3 years ago
Which of the following products is likely to require the most help from a sales person?
Nina [5.8K]

a house, duh, clothing can be hung and stored, potato chips are bagged, a magazine is almost useless, but a house needs plants trimmmed and rooms cleaned and taking care of bugs and such

7 0
3 years ago
Read 2 more answers
In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the
ryzh [129]

Answer:

The correct answer is letter "A": in both statements I and II.

Explanation:

(I) According to the demand law, <em>if the price of tea increases the quantity demanded of tea will decrease</em>. If the price of tea decreases, the quantity demanded of tea will increase. Quantity demanded and the price has an inversely proportional relationship in the demand law.

(II) When talking about complementary goods like tea and sugar, <em>if the price of tea increases will result in a negative movement along the demand curve of tea and will cause the demand curve of sugar to move inwards. In such a scenario, the demand for each good will be reduced.</em>

8 0
3 years ago
Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn and save the remainin
Nata [24]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Marginal propensity to consume (MPC) for this economy is 0.75 as it denotes the spending of the household and saving of 0.25 and the spending multiplier for this economy is

= Spending Multiplier(M)

= 1 ÷ 1 - MPC

= 1 ÷ 1-0.75

= 1 ÷ 0.25

= 4

2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption

= -Amount of Government Decrease Purchases by × MPC

= -$250 billion × 0.75

= -$187.5 billion

3). Decrease income again, causing a second change in consumption

= Amount Decrease in Government Purchases × MPC

= -$187.5 billion × 0.75

= $140.6 billion

4).Total change in demand resulting from the initial change in government spending

=  Amount of Government Decrease Purchases by × Spending Multiplier(M)  

= $250 × 4

= $1,000 billion

= $1 trillion

As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion

In the question the graph is missing. Kindly find the attachment for both of question and answer

5 0
2 years ago
Other questions:
  • How frequently does John typically receive account statements from his bank?
    7·1 answer
  • Stone purchased farm land from Fowler with the idea of developing it. Fowler took part payment in cash and the balance in the fo
    8·1 answer
  • Profit motive and a sense of __________ act as powerful incentives for many entrepreneurs. A. power
    12·1 answer
  • Liabilities are what??
    13·1 answer
  • List four.characteristics of an application that would influence the electric motor selection
    7·1 answer
  • Alex Guadet of Nashville, Tennessee, has been renting a two-bedroom house for several years. He pays $900 per month in rent for
    6·1 answer
  • The principal-agent problem, as applied to the labor market, would have the :
    11·1 answer
  • Which of the following investments choices is least risky?
    8·1 answer
  • When a transaction is journalized, which account is listed first?.
    13·1 answer
  • Which form do independent contractors receive from clients to verify income
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!