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Nesterboy [21]
3 years ago
9

Two people save money in a tax-deferred Individual Retirement Account that earns 8% annually. Person A invests $ 3,000 a year fr

om age 20 to 29, but then never saves another penny. Person B starts investing $ 3,000 a year at age 30 and saves that same amount annually for the rest of his life. Who has more money in the account at age 65?
Business
1 answer:
riadik2000 [5.3K]3 years ago
3 0

Answer:

Person B

Explanation:

If Person A begins investing $3,000 a year from age 20 to 29 he would have invested a total of $30,000. Each year he earns 8% of the amount in his account, so the first year he earns $3,000 x 8% = $240, the second year $6,000 x 8 = $ 480...and so on. Total interest earned are $99,600 from the age of 20 thru 65, because at age 30 no more money in invested but the $30,000 continues to earn 8% interest until the age of 65.

Person A earns a total of $30,000 + $99,600 =  $129,600

Person B begins investing $3,000 a year at age 30 and invests a total of $108,00 from age 30 thru 65. Interest of 8% also needs to be considered from age 30 thru age 65. Total interest earned is $159,840.

Person B earns a total of $108,000 + $159,840 = $267,840

So Person B would earn more money at the age of 65.

PS: Spreadsheet attached.

Download xlsx
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Bonita industries sells two types of computer hard drives. the sales mix is 30% (q-drive) and 70% (q-drive plus). q-drive has va
podryga [215]
3300 units of q - drive.

To get the break even units of  q drive you need to get the weighted average contribution margin of the two products

To get it, simply multiply the sales mix ratio to its contribution margin per product and add the two to get the wacm.

Q-drive cm=$120-60=60*30%
Q-drive plus cm= $165-75*70%

the wacm=$81
then divide the fixed cost by the wacm

$891000 / $81=11000 units

then to get the break even units of q-drive simply multiply the sales mix ratio to the break even units

11000 units*30% =3300 units.
5 0
3 years ago
community hospital in a rual community operates the ambulance service. the hospital purchases a new ambulance for $150,000. they
lisov135 [29]

Answer:

$150,000×20,000=3.000.000.000

Explanation:

3.000.000.000÷10=300.000.000 years

5 0
3 years ago
One disadvantage of renting a home is , which directly affect what the renters can and can’t do in and around the house. On the
slava [35]

disadvantage is that the land lord can raise the rent easily while you can not do anything about it.Lower insurance, When renting a home, we would most likely restricted to make any modification that we like to the home. (such as we are not allowed to change the color of the paint)

On the insurance front, renting a home has cheaper insurance since we are only paying for the protection of the personal goods that we keep on the home. We do not have to pay for property tax since the home is not belong to us.

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7 0
3 years ago
Match each hypothetical country’s aging structure to its most likely economic situation.
worty [1.4K]

It should be noted that the aging structure data is important as it allows the rate of growth to be associated with the population in a country.

Your information is incomplete. Therefore, an overview of the topic will be given. There are typically three age structures which are:

  • The children who are under 15 years old.
  • The working-age who are between 15 - 64 years.
  • The elderly ones who are 65 years and older.

It should be noted that an aging population lower the labor-force participation and slows down economic development in the country.

Learn more about aging population on:

brainly.com/question/14540910

7 0
2 years ago
Thomas Engel contributed equipment, inventory, and $45,000 cash to a partnership. The equipment had a book value of $25,000 and
Troyanec [42]

Answer:

Thomas capital

Equipment                $30,000

Inventory                   25,000

Cash                         <u> 45,000</u>

Total                       <u>  100,000</u>

Explanation:

Equipment : thebook value is $25,000 while the market value is $30,000.  the market value of the equipment will be used.

Inventory : the book value is $50,000 while the market value is $25,000. As a result of obsolescence, the inventory will be value at lower of cost and net realizable value(IAS2). therefore, $25,000 will be recognized for the inventory in the determination of Thomas capital

Cash: there is no changes in cash contributed.

5 0
3 years ago
Read 2 more answers
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