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Semenov [28]
3 years ago
9

Muhammad deposited $800 at the beginning of each quarter for 8 years into an IRA. Given an interest rate of 8% compounded quarte

rly, find the future value
Business
1 answer:
Nastasia [14]3 years ago
8 0

Answer:

$18,775

Explanation:

We can calculate the future value of the investment by using the following formula:

Future Value = P * [1 -   (1+i)^-n]  / i

Here,

P is the periodic payments of $800

n is the number of periodic payments made which is 4 in a year and 32 in 8 years. So n = 32 number of payments.

r is the annual interest rate which is 8%

i is interest earned after on periodic periodic is:

i = Annual interest rate / Number of periodic payments in a year = 8% / 4

= 2%

By putting this value in the equation, we have:

Future Value = $800 * [1-  (1 + 2%)^-32]  / 2%

Future Value = $18,775

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7nadin3 [17]

Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.

6 0
3 years ago
Read 2 more answers
Alpha Division had the following information: Average operating asset base in Alpha Division $500,000 Operating income in Alpha
ExtremeBDS [4]

Answer:

15.79%

Explanation:

The computation of the return on investment is shown below:

Return on investment  = Operating Income ÷  New operating asset base

where,

Operating income is $60,000

And, the new operating asset is

= $500,000 - $120,000

= $380,000

So, the return on investment is

= $60,000 ÷ $380,000

= 15.79%

By dividing the operating income from the new operating asset base we can get the return on investment

5 0
3 years ago
Making a prediction today about the​ world's population in twenty years based on current growth trends is an example of ▼ normat
iragen [17]

Answer: Positive, Normative

Explanation: Positive economics is based on facts and objects that can be verified. While, normative economics is based on value based judgement that are difficult to verify.

Making a prediction today about the​ world's population in twenty years <em>based on current growth trends</em> is an example of <em>positive economics</em>.

<em>Advising</em> the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of <em>normative economics</em>.


6 0
3 years ago
A company has $10,710 available per month for advertising. Newspaper ads cost $180 each and can't run more than 22 times per mon
True [87]

Answer:

22 radio advertisements will be used.

Explanation:

<u>Note</u>: A similar complete question is as follow as the question provided is incomplete <em>"A company has $11,970 available per month for advertising. Newspaper ads cost $110 each and can't run more than 25 times per month. Radio ads cost $410 each and can't run more than 32 times per month at this price. Each newspaper ad reaches 5950 potential customers, and each radio ad reaches 7100 potential customers. The company wants to maximize the number of ad exposures to potential customers. Use n n for number of Newspaper advertisements and r r for number of Radio advertisements . Maximize P"</em>

Number of potential customers that can be reached due to each dollar spent in newspaper advertising =  5950 / 110 = 54.09

Number of potential customers that can be reached due to each dollar spent in Radio advertisements = 7100 / 410 = 17.32.

As the number of potential customers reached by each dollar spent is more from the newspaper advertising, we will use all the newspaper advertising opportunities before going for the radio advertisements. So, we will choose to have 25 newspaper advertisements in the month.

The cost of 25 newspaper advertisements = 25*110  = $2750.

Amount left = $11970 - $2750 = $9220.

Number of radio advertisements possible in this budget = 9220 / 410 = 22.48

Hence, 22 radio advertisements will be used.

3 0
2 years ago
Mary purchased a home in year 1 for $200,000. She made a 20-percent down payment and financed the rest with a 15 year loan at si
Serjik [45]

Answer:

If Mary decides to itemize her deductions, she can deduct $11,000 from her gross income (= $9,600 + $1,400).

Explanation:

For 2019, Mary can deduct mortgage interests from her first loan and the interests from her home equity loan as itemized deductions. Deductions are available for mortgage debt and other home equity loans up to $500,000 for single filers and $1,000,000 for married joint filers.

8 0
3 years ago
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