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
den301095 [7]
3 years ago
11

A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the

account by the time she retires from work in 40 years. The bank manager (a) (b) (c) (a) (b) (c) (a) (b) (a) (b) (c) (a) (b) (c) estimates she may expect to receive 6% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 5% annual rate during her career. She wishes to start her IRA with as low a deposit as possible and increase it at a 5% rate each year. Assuming end-of-year deposits, how much should she deposit the first year
Business
1 answer:
dimaraw [331]3 years ago
8 0

Answer:

The minimum deposit will be of 3,081 and after 40 year it will get 1,000,000 dollars

Explanation:

We have to solve for the C of an annuity growing

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

g 0.05

r 0.06

C 3,081

n 40

C \frac{1-(1+0.05)^{40}\times (1+0.06)^{40} }{0.06-0.05} = 1,000,000

C \times 324.57 = 1,000,000

C = 1,000,000/ 324.57 = 3,081

You might be interested in
When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the ________ of the inves
vekshin1

Answer:

Present value

Future value

Explanation:

Present value is the value of cashflows discounted at interest rate at arrive at its value today.

Future value is the value of cashflows discounted at interest rate at arrive at its value at some given time in the future.

I hope my answer helps you

8 0
3 years ago
Read 2 more answers
You purchased two WXO 30 call option contracts at a quoted price of $.35. What is your net gain or loss on this investment if th
tekilochka [14]

Answer: $670

Explanation:

Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70

Then, the price of RADM 30 call option contract will be calculated as;

= $33.7 - $30

= $3.70

The net gain on one RADM 30 call option will then be:

= $3.70 - $0.35

= $3.35.

Therefore, the net gain on 2 RADM30 call options will be:

= $3.35 × 2

= $6.70

Since there are 100 shares in a option contract, the gain will be:

= $6.70 × 100

= $670

3 0
3 years ago
What is a target audience and why is it important to consider when creating a multimedia presentation?
ss7ja [257]

A target audience is the group that you are trying to attract. It is important to have one for your multimedia presentation because it is impossible to appeal to all groups, so you must narrow down who you are trying to reach.

A target audience is the group or demographic that you are aiming the multimedia presentation at. A target audience may include things like a specific gender, age group, marital status or income level.

A target audience is important when creating a multimedia presentation because you want to attract attention, but it is impossible to attract everyone’s attention. You need to include features that will appeal to your target audience. These features may include photos, music or topics that will appeal to a particular group.

4 0
3 years ago
U.S. Craft Beer Bolsters U.K. Hop Production btle taste of UK. hop varieties U.K. hop farmers stepped up production in response
Nadusha1986 [10]

Answer:

The correct answer is letter "A": supply and an increase in the quantity demanded.

Explanation:

U.S. craft beer production has increased, thus, the supply of craft beer is increasing. If the supply increases, the price of craft beer decreases. By demand law, if the prices of a craft beer drop, the quantity demanded for craft beer are likely to be incremented.

8 0
3 years ago
Aden is a small engine mechanic who earns a regular hourly rate of $15.68. For overtime, he earns time and a half on Saturdays a
Snowcat [4.5K]

Answer:

$1,034.88

Explanation:

Aden  total pay will be

regular hours worked x regular pay

=40 hrs x $15.68

=$627.2

Overtime hours

Saturday rate :$15.68 x 1.5 =$23.52

Hours worked on Saturday= 8 hrs

Saturday pay = $15.68 x 8

=$188.16

Sunday rate :  $15.68 x 2= $31.36

Hours worked on Sunday = 7

Sunday pay = $31.36 x 7

=$219.

Total pay  =$627.2 + $188.16 +$219.52

=$1,034.88

3 0
3 years ago
Other questions:
  • Max is a chef at a local restaurant. He's making a broth and wants it to have a rich, roasted flavor. Max should add _______ to
    9·2 answers
  • Electronic payments can be made using the routing and account number and are processed at banks like regular checks.
    6·1 answer
  • Can someone please help me out
    8·1 answer
  • which of these is most appropriate closing for a business letter? a. respectfully, b. kind thoughts, c. until next time, d. chee
    7·2 answers
  • A stock is expected to return 13 percent in an economic boom, 10 percent in a normal economy, and 3 percent in a recessionary ec
    6·1 answer
  • Some financial experts recommend people create their personal budgets as follows: 50% on
    11·1 answer
  • Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1
    11·1 answer
  • Which of the following statements is CORRECT?
    6·1 answer
  • Which of the following is not considered part of your income?
    6·1 answer
  • 25. A firm that uses weighted average process costing has 400 units in Beginning Inventory that are 80% complete. During the per
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!