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
Alex_Xolod [135]
3 years ago
14

(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough

money in the fund?
(b) Find the investors quarterly deposit if the money is deposited at 94% compounded quarterly.
The deposit should be__________. $ (Round to the nearest cent as needed)
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
7 0

Answer:

(a) The deposit should be <u>$168.06 </u>quarterly.

(a) The deposit should be <u>$145.32 </u>quarterly.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

An investor needs $11,000 in 19 years.

(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough money in the fund?

(b) Find the investors quarterly deposit if the money is deposited at 9.4% compounded quarterly.

The explanations to the answers are now given as follows:

(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough money in the fund?

Since the amount should be deposited in a fund at the end of each quarter, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

FV = M * {[(1 + r)^n - 1] / r} ................................. (1)

Where,

FV = Future value of the amount needed in 19 years = $11,000

M = Quarterly deposit = ?

r = Quarterly interest rate = 7% / 4 = 0.07 / 4 = 0.0175

n = number of quarters the deposits will be made = 11 * 4 = 44

Substituting the values into equation (1) and solve for M, we have:

11,000 = M * {[(1 + 0.0175)^44 - 1] / 0.0175}

11,000 = M * 65.4531536741798

M = 11,000 / 65.4531536741798

M = $168.06

(b) Find the investors quarterly deposit if the money is deposited at 9.4% compounded quarterly.

We make use of equation (1) in part (a) as follows:

Where,

FV = Future value of the amount needed in 19 years = $11,000

M = Quarterly deposit = ?

r = Quarterly interest rate = 9.4% / 4 = 0.094 / 4 = 0.0235

n = number of quarters the deposits will be made = 11 * 4 = 44

Substituting the values into equation (1) and solve for M, we have:

11,000 = M * {[(1 + 0.0235)^44 - 1] / 0.0235}

11,000 = M * 75.6957891651599

M = 11,000 / 75.6957891651599

M = $145.32

You might be interested in
A firm negotiates a(n) _________ with its bank. This arrangement gives the firm access to a specified amount of unsecured short-
Vesna [10]

Answer:

<u>Line of credit </u>

Explanation:

A line of credit refers to a mechanism of availing short term credit from banks whereby a borrower is provided with a preset limit till which funds can be availed anytime.

As the borrower repays the money borrowed, the line of credit gets restored to the previous level provided it is an open line of credit.

Line of credit specifies the maximum limit till which money can be borrowed. The rate of interest and repayment time period are decided by the lender which is usually a bank.

Borrower is usually supposed to pay interest upon the money actually borrowed and not the full limit of the line of credit.

7 0
3 years ago
The concept of risk management is based on an assessment of benefits gained compared to the ___:
Tanzania [10]

Answer:

potential risk/threat

Explanation:

the concept of risk management is based on mitigating risk or avoid potential threat and plans of minimizing the impact should they occur.

5 0
3 years ago
Stanford owns and operates two dry cleaning businesses. He travels to Boston to aquire a restaurant. Later in the month, he trav
Olegator [25]

Answer:

$4,522

Explanation:

As the restaurant is not acquired so the amount of $28,000 would be non-deductible

Also if the expenses is incurred so the maximum deduction allowed is in excess of $50,000 is $5,000

Now

= $51,000 - $50,000

= $1,000 reduction

And,  

= $5,000 - $1,000

= $4,000 deduction

Now

= $51,000 - $4,000

= $47,000

Now

= $47,000 ÷ 180 months

= $261 × 2 months

= 522

Now total deduction is

= $4,000 + $522

= $4,522

4 0
2 years ago
You have just finished preparing a formal report on a proposed company merger. You are about to complete your title page. What s
USPshnik [31]

Answer:

The correct answer is letter "A":  Title; author’s name; name of report; name and organization of the receiver; author’s title; date of submission.

Explanation:

The title page is the front page that starts every formal report. It gives the first impression on how well structured the study has been compacted and provides an overall idea of what is the report going to be explaining. The correct order of information that must be included is:

  • <em>Title </em>
  • <em>Author’s name</em>
  • <em>Name of report</em>
  • <em>Name and organization of the receiver</em>
  • <em>Author’s title</em>
  • <em>Date of submission</em>

Some of them include an <em>abstract </em>at the bottom of the page adding a brief summary of the content, usually to attract the reader.

7 0
3 years ago
When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and
guajiro [1.7K]
Base on my research, the gap that is stated in the problem is the inflationary gap. This is the amount of the real GDP go beyond potential full-employment GDP. Upon eliminating this gap the government forms a policy that will allow the potential GDP to be equal to the real GDP and higher the price level. 
7 0
3 years ago
Other questions:
  • Justin is in charge of the central region, with several dozen stores reporting to him. Last year, he analyzed sales data for dem
    8·1 answer
  • The Real Estate Recovery fund is financed through money received from administrative fines and surcharges on new and renewing li
    10·1 answer
  • You purchased 200 shares of ABC stock on July 15th. On July 20th, you purchased another 100 shares and then on July 22st you pur
    6·1 answer
  • Which of the following statements is true regarding a cross-functional team?A) A cross-functional team is made up of employees f
    13·1 answer
  • What is the Current Ratio given the following information?
    12·2 answers
  • You are looking for part-time employment and posted your rĂ©sumĂ© to an online job site. One day you receive an e-mail from a co
    14·1 answer
  • Explain how savers would respond if the interest rate on savings accounts increased. Would they increase or decrease their amoun
    13·1 answer
  • the benefit of ________ is that complex tasks can be parceled out to specialists, improving productivity, which results in great
    11·1 answer
  • _____ is the most common, real-world method of estimating projects. Group of answer choices Delphi Technique Time Boxing Bottom-
    14·1 answer
  • Thomas hudson recently coordinated a fund-raising project for an organization that assists homeless youth. this would most likel
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!