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Rama09 [41]
3 years ago
11

You want to purchase a new car in 7 years and expect the car to cost ​$77 comma 000. Your bank offers a plan with a guaranteed A

PR of 5.5 % if you make regular monthly deposits. How much should you deposit each month to end up with ​$77 comma 000 in 7 ​years?
Business
1 answer:
Flauer [41]3 years ago
7 0

Answer: $753.58

Explanation: The best way to calculate this is by using a financial calculator. An HP10bII+ is an appropriate financial calculator to use, although other financial calculators should still compute the same answer.

By using a financial calculator to find the answer the following elements are required:

Present Value (PV): the value of money currently that will grow into more money in the future. Because you still have to start saving money to deposit into the bank from the first month, your present value is still $0.

Interest rate (I/YR): the amount, in percentage terms, charged by the bank to you on the value of the money you deposited into the bank. This allows your deposit to grow on a month to month basis. In this case the bank charges an APR of 5.5%.

Number of years (N): the amount of years the money will stay in the bank before it matures. The value will grow over the next 7 years.

Future Value (FV): This is the final amount of a current investment after it has grown in an account that accrues interest over time. In this case it is the expected $77,000 at the end of the 7th year.

All the above elements are computed to find the payment per month (PMT). This is the amount of money you have to deposit into the account every month to receive a total future value of $77,000 after 7 years.

When these figures are inputed into a calculator the following outcome is deduced:

Ensure 12 periods per year (12 shift P/YR on calculator), as deposits are made every month for 12 months every year.

PV = 0

I/YR = 5.5%

N= 84 periods (i.e. 7 years x 12 months per year)

FV = $77.000

∴ PMT = $753.5766 rounded to $753.58 (ignore the minus sign, this only indicates that you are taking money out to deposit into the account monthly)

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An employee earns $6,350 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500
Vlad1618 [11]

Answer:

$965.075

Explanation:

Payroll taxes for the month of January is = FICA +FUTA +SUTA+

federal income taxes withheld+voluntary deductions for health insurance +contributes retirement plan.

= (0.0145*6350) +(0.006*6350)+(0.054*6350)+216+184+92

= 92.075+38.1+342.9+216+184+92

= 965.075

$965.075

Some money like Social Security is 6.2% of the first $118,500( not added because he's earnings are not up to $118500 and it's yearly stuff) and unemployment taxe is not added because his earnings is not up to $7000

7 0
3 years ago
The Platinum Platform, in Dubuque, Iowa, sells high-quality, unique bedding that is a real value to upscale homes in the area. N
CaHeK987 [17]

Answer:

focused-differentiation

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question The Platinum Platform is utilizing a focused-differentiation strategy. This is a strategy that focuses on offering specific products that make the customer believe that the product is vastly superior to it's competitors even though prices are higher. This allows them to gain a competitive advantage in the market. Which is what Platinum Platform is doing by offering it's unique high quality bedding.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Read 2 more answers
Stormy Corporation has two service departments (S1 and S2) and two production departments (P1 and P2), and uses the step-down me
Marianna [84]

Answer:

E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.

Explanation:

As S1 gives more service, So it would be allocated first

Here

S1 cost of $280,000 would be allocated to S2 P1 and P2 based on number  of employees

The total employees in S2 P1 and P2 is

= 20 + 50 + 70

= 140

And, the Cost to be allocated per employee is

= $280,000 ÷ 140

= $2,000

Now cost received by S2 is

= $2,000 × 20

= $40000

And, the cost received by P1 is

= $2,000 × 50

= $100,000

And, the cost received by P2 is

= $2,000 × $70

= $140,000

Now

S2 contains total cost of

= $350,000 + $40,000 (from S1)

= $390,000

So this would be allocated to P1 and P2 as S1 has already allocated  

Hence, option D is correct

3 0
3 years ago
A common size analysis requires the representation of financial statement data relative to a single financial statement item (or
MArishka [77]

Answer:

The correct answer is letter "C": Total assets.

Explanation:

Total assets represent the total amount of assets that an individual or entity possesses to obtain a return from them. In accounting, it is obtained by subtracting the previous period total assets minus the current period total assets. They appear in the Balance Sheet of a company and is the baseline or common base item to which other line items are expressed.

7 0
3 years ago
Write a brief memo to the Chairman of the Board explaining how much you plan to invest in the Company and what you project the r
MAXImum [283]
One breif memos are awesome but sorry din't know
7 0
3 years ago
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