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
Artist 52 [7]
3 years ago
14

Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pa

ys a fixed interest rate of 8%, to ensure that she has $600,000 in 20 years?
Business
1 answer:
Leona [35]3 years ago
5 0

Answer:

Total value attained in 20 years = Simple interest of 20 years on the Principal amount + Principal amount invested

<em>Simple interest = Principal amount invested * Interest rate * Time Period</em>

Simple interest earned during 20 years =  X * 0.08 i.e. 8% * 20 ( Assume principal invested as <em>X)</em>

= 1.6 X

Hence,

$ 600,000 = 1.6 X + X

2.6 X = 600,000

X = 600,000 / 2.6  

= $ 230,769 (Approx.)

<em>Hence, amount Sara should put in the Savings Accounts now =  $ 230,769 (Approx.)</em>

<em></em>

Explanation:

Refer to the answer.

You might be interested in
Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On t
Nataliya [291]

Answer:

c. $50,000

Explanation:

The investing activities of cash flow deals with the actual cash received/paid by the entity/corporation from the investing activities. Since in the given question, the actual cash received by the entity from the sale of lands amounts to $50,000, therefore the $50,000 shall be included in the investing activity section of the Cash flows from the sale of land and accordingly the answer shall be c. $50,000

4 0
3 years ago
Kristina just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $62 m
xxMikexx [17]

Answer:

a. Best deal is 30 end-of-year payments of $5.6 million

b. Best deal is 10 end-of-year payments of $9.5 million

c. Best deal is lump sum today of $62 million

Explanation:

Please see attachment for workings.

d. As the interest rate increases, the duration of value shortens. That is as the interest rate increases, the best choose based on their payment duration reduces

6 0
3 years ago
The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested
slava [35]

The amount of track improvement cost that should be allocated to the Western Division is  $3,200,000.

<h3>What amount should be allocated to Western Division?</h3>

The amount that should be allocated to Western Division is a function of the miles travelled on the Western division.

The amount to be allocated to Western Division : (miles travelled on Western division / total miles travelled) x cost of the revision

  • miles travelled on Western division = 800,000 miles
  • total miles travelled = 1,200,000 + 800,000 = 2,000,000 miles

The amount to be allocated to Western Division : (800,000 / 2,000,000) x 8,000,000  = $3,200,000

To learn more about cost, please check: brainly.com/question/25717996

#SPJ1

7 0
2 years ago
Which financial activity helps a company based in another country
Lady_Fox [76]

Answer:

The correct answer is A

Explanation:

The financial activity is that activity which is undertaken by companies in order to accomplish their economic objectives and goals.

FDI (Foreign direct investment), which is an investment that is controlling the ownership or possession of the business in one country by an entity in another country.

Therefore, the FDI is the one activity which will help the company based in another country.

5 0
3 years ago
Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 d
MaRussiya [10]

Answer:

(C) 110 days

Explanation:

The computation of the operating cycle is shown below:

= Average days of process from raw materials to finished products + another days before the finished goods are sold + average days of accounts receivable -  average days of accounts payable

=  80 days + 40 days + 70 days -  80 days

= 110 days

While calculating the operating cycle we add the inventory days, accounts receivable and deduct the account payable days.

6 0
3 years ago
Other questions:
  • Should color and design be used in emails
    12·2 answers
  • Ray presents information about the office supplies his company sells to a
    7·2 answers
  • Businesses that are separated into two or more manageable units in which managers have authority &amp; responsibility for operat
    11·1 answer
  • Atlas industries combines the smaller investment proposals from each operational unit into a single project for planning purpose
    8·1 answer
  • The following are true statements about distributive bargaining except:
    13·1 answer
  • Which of the following was a free market philosopher?
    6·1 answer
  • Using the GLOBE study results and other supporting data, determine what Japanese managers believe about their subordinates. How
    13·1 answer
  • HELP PLZZ ASAP WILL GIVE BRAIIEST
    11·2 answers
  • If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?.
    12·1 answer
  • What two methods are currently among the most popular and effective for businesses to connect with high-quality job seekers
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!