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AlladinOne [14]
3 years ago
10

Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $ 191 comma 000. In

flation is expected to cause this price to increase at 6​% per year over the 17 years before C. L. Donovan retires. If Donovan earns 9​% on his​ investments, ow large must an​ equal, end-of-year deposit must be to provide the cash needed to buy the home 17 years from​ now?
Business
1 answer:
Sliva [168]3 years ago
8 0

Answer: $13,910.42

Explanation:

The price of the house increases by 6% per year for 17 years.

The value at the end of 17 years is;

= 191,000 ( 1 + 6%) ¹⁷

= $514,319.60

Mr Donovan needs to deposit an amount per year at an interest rate of 9% that will earn him $514,319.60 at the end of 17 years.

This makes this an annuity which is calculated as;

Future Value of Annuity = Annuity (( 1 + rate )^ no. of periods - 1 ) / rate

514,319.60 = Annuity ((1 + 9%)¹⁷ - 1)/9%

514,319.60 = Annuity * 36.9737

Annuity = 514,319.60/36.9737

= $13,910.42

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Strong family ties to the surrounding social context, as indicated by frequent contact with friends and relatives, organized you
jolli1 [7]

Answer:

The correct answer is: reduce stress and enhance adjustment.

Explanation:

Families bond with their surrounding society promotes a friendly atmosphere in society. Cooperation, kindness, respect, and honesty are core values that families should share among them. By doing this, their atmosphere is likely to be <em>less stressful</em> and adults and children can <em>adapt to the community</em> easier.

5 0
3 years ago
Suppose a company is financed with $20 million of equity and $60 million of debt. That is, the company obtained $20 million from
alexgriva [62]

Answer:

Existing Equity = 20 million

Existing debt = 60 million

Total capital = 20 million + 60 million = 80 million

a. Given company issued 30 million of equity to retire debt

Equity after raise = $20 million + $30 million = $50 million

Debt = $60 million - $30 million = $30 million

Total capital size remain at $80 million

Capital structure, Equity = $50 million/$80 million = 0.625 = 62.50%

Debt = (1-0.625) = 0.375 = 37.50%

b. The market would welcome the new issue as the risk of  the firm would be reduced.

6 0
3 years ago
The first benefit of trade given in Chapter 2 is that "trade makes people better off when preferences differ." How does the stor
Bess [88]

Answer:  Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.

Explanation:

Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.

In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.

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3 years ago
List 5 things you have purchased in the last year because of a marketing function. Describe what function of marketing was evide
Marizza181 [45]

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1- smartphone

2- computer

3- kindle

4- clothes

5- watch

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The economy exists due to the human need for products and services.

Marketing is responsible for adapting such products and services to the individual needs of each person, in order to offer value to the customer, meeting their desires and preferences through features, personalization of products and services, benefits, customer service, advertising, communication , etc., for a company to be strategically competitive and improve profits.

Therefore, in relation to the products acquired by me last year, there are 3 technological products (smartphone, computer and kindle) that were acquired through the function of marketing features that satisfy the needs of work, communication and leisure.

The watch and clothes were acquired through the function of advertising marketing and differentiated design, which add value to the customer through the status they create in the consumer's mind.

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3 years ago
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Answer:

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