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USPshnik [31]
3 years ago
7

Today, you turn 21. Your birthday wish is that you will be a millionaire by your 40th birthday. In an attempt to reach this goal

, you decide to save $75 a day, every day, until you turn 40. You open an investment account and deposit your first $75 today. What rate of return must you earn to achieve your goal? Note: Ignore Leap Years.
Business
1 answer:
JulsSmile [24]3 years ago
5 0

Answer:

rate of 0.000171716533316905 = 0.017% daily

Explanation:

we need to solve for the rate of an annuity for 19 years with daily deposits of 75 dolllars to yield a principal of 1,000,000 dollars

365 days x 19 years = 6,935 days

we use goal seek on excel as follow:

on A1 we write 0.01 this will be a placeholder for the rate

then on A2 we write  =FV(A1;6935;75)

then with goal seek we definethat we want A2 equal to 1,000,000 changing A1 (rate)

which give us:

0.000171717  = 0.017% per day to achieve the goal:

C \times \frac{(1+r)^{time} -1}{rate} = FV\\  

C 75

time 6935

rate 0.000171717

75 \times \frac{1-(1+0.000171716533316905)^{-6935} }{0.000171716533316905} = FV\\  

FV $999,999.9999  

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Answer:

The opportunity cost of one tomato in Country B is 3 Bananas

Explanation:

Banana Tomato Workers Oportunitty Cost

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4 0
3 years ago
Matthias Corp. had the following foreign currency transactions during 2017:
Ronch [10]

Answer:

$7,300 loss

Explanation:

The computation of the net foreign exchange gain or loss included in the income statement is shown below:

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So in this case $7,300 loss is included which is a difference of $9,700 and $17,000

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3 years ago
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Explanation:

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7 0
3 years ago
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Answer:

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Property, Plant. and Equipment -Asset

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Property, plant and equipment , accounts receivable and prepaid expenses would appear on the asset side of the balance sheet.

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