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
butalik [34]
3 years ago
7

A 20-year-old student wants to save $5 a day for her retirement. Every day she places $5 in a drawer. At the end of each year, s

he invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. If she keeps saving in this manner, how much will she have accumulated at age 65? If a 40-year-old investor began saving in this manner, how much would he have at age 65? How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 as the 20-year-old investor?
Business
1 answer:
ollegr [7]3 years ago
7 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. She will invest for 45 years.

A) We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1825[(1.08^45)-1]}/0.08= $705,372.75

B) n= 25

FV= {1825[(1.08^25)-1]}/0.08= $133,418.34

C) FV= 705,372.75     A=?

We need to isolate A:

A= (FV*i)/{[(1+i)^n]-1}

A=(705,372.75*0.08)/[(1.08^25)-1]

A= $9,648.64

You might be interested in
Managers who subscribe to ____________ believe that people are naturally lazy and uncooperative and must therefore be either pun
agasfer [191]

Manager who subscribe to Theory X believe that people are naturally lazy and uncooperative and therefore must either be rewarded or punished to be made productive to achieve the target.

Theory X and theory y are two theories of human motivation and management created by Douglas McGregor based on the works of Abraham Maslow and demonstrate opposing models of workforce motivation.  Theory X works on the assumption that the typical worker is unambitious, selfish, uncooperative and avoids responsibility, unintelligent, lazy, and that their main motivation is a steady income.

Managers who employ these assumptions tend to use a reward/punishment system as a motivator and expect increased efficiency with a hands-on approach. Under this type of management, individuals are more likely to directly receive a negative or positive outcome and are considered to be most effective in a workforce with low-performance motivation. A workplace that involves assembly lines or manual labor is ideal for this managerial style.  

You can learn more about theory X at

brainly.com/question/12440324

#SPJ4

3 0
1 year ago
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic pric
kotykmax [81]

Answer:

Export

true

Explanation:

Because the price of meekers in meekertown is lower than the world price for meekers, meekers from meekertown are cheaper. so if free trade is allowed, other countries would want to purchase meekers from meekertown because it is cheaper.

So, meekertown would export meekers if free trade is allowed.

When a country is too small affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.

this is so because if the country is efficient in production of a good (producing at a lower price when compared to the world price), export of the good would increase thus increasing producer surplus. if on the other hand, the country is inefficient in producing a good and the country allows for free trade, the country can import the good. this would increase consumer surplus.

4 0
3 years ago
Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey.
padilas [110]

Answer:

d)$1,100 long-term capital gain

Explanation:

Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.

8 0
3 years ago
Cartier corporation currently sells its products for $50 per unit. the company's variable costs are $20 per unit. fixed expenses
charle [14.2K]
The answer is 40%, in which the following are given: the Variable expense is equal to 20 dollars per unit and Sales is equal to 50 dollars per unit. Use the formula Variable Expense Ratio = Variable Expenses / Sales to get the answer. 

Variable Expense Ratio = Variable Expenses / Sales
Variable Expense Ratio = 20 dollars per unit / 50 dollars per unit
Variable Expense Ratio = 40 %

The variable expense ratio is an expression of variable production costs of the company as a percentage of sales, calculated as variable expense divided by total sales. It compares a cost that alters with levels of production to the number of revenues generated by production.
8 0
4 years ago
Hich of the following industries is not considered to be defensive?
AnnyKZ [126]

The correct option is Building materials.

Building materials:

  • 1: a building constructed for long-term usage that is typically walled and roofed (as for a dwelling) 2: the process of putting together materials to form a structure. Synonyms Example Sentences Phrases containing structure Learn More About Construction.
  • Any kind of man-made construction is a structure. It might be a dam or a bridge, for instance. In contrast, a building is a closed construction with walls and a roof.
  • The following structures are included in the definition of a building: Walls, floors, roofs, chimneys, plumbing and drainage systems, fixed constructions, etc. are examples of structural components. Verandas or atriums, balconies, cornices, building projections that extend past the structure's outside walls, etc.

Learn more about building materials here brainly.com/question/9779427

#SPJ4

6 0
2 years ago
Other questions:
  • A new project would require an immediate increase in raw materials in the amount $6,000. The firm expects that accounts payable
    7·1 answer
  • Which graph shows the relationship between the aggregate price level and the aggregate quantity supplied over time?
    5·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    15·1 answer
  • A perfectly competitive industry exists under which of the following conditions? I. The product sold is similar across firms. II
    7·1 answer
  • Meat​ Packers, Incorporated​ (MPI) preserves and packages various kinds of meats for transportation to grocery stores. To prepar
    14·1 answer
  • If Antonio's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions de
    8·1 answer
  • Geneva Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months ea
    8·1 answer
  • The company estimates that it can issue debt at a rate of rd = 9%, and its tax rate is 40%. It can issue preferred stock that pa
    15·1 answer
  • The yield to maturity (YTM) on 1-year zero-coupon bonds is 7% and the YTM on 2-year zeros is 8%. The yield to maturity on 2-year
    14·1 answer
  • The company uses a custom-made software program to manage its inventory. The company paid a consulting firm $32,000 to develop t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!