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mixer [17]
3 years ago
10

Nan and Neal are twins. Nan invests $5,000 at 7 percent at age 25. Neal Invests $5,000 at 7 percent at age 30. Both investments

compound Interest annually. Both twins retire at age 60 and nelther adds nor withdraws funds prior to retirement. Which statement is correct? Multiple Choice
Nan will have less money when she reires than Neal.
Neal will earn more Interest on Interest than Nan.
Neal will earn more compound Interest than Nan.
If both Nan and Neal walt to age 70 to retire they will have equal amounts of savings
Nan will have more money than Neal at any age.
Business
1 answer:
Akimi4 [234]3 years ago
7 0

Answer:

Nan will have more money than Neal at any age.

Explanation:

There are 5 major key points that must be identified from the question:

1. Nan and Neal are twins: Hence they are same age

2. Nan invests at age 25: 5 years earlier than Neal who invest at 30

3. Both of them invests same amount at same interest rate

4. Both investment compounds annually

5. Both twins retire at age 60 and neither adds nor withdraws funds prior to retirement

From this key points, it is clear that with the 5 years investment gap, Nan will surely have more money than Neal at any point in time, since all the factors of investment for both are the same, with Nan having the advantage because of the early-bird factor. He would definitely have over 5000 dollars as at the time Neal would start, and Nan's value at the starting year of Neal, would be Neal's amount in 5 years time, and at that time, Nan would be ahead, since they both compound annually.

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Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $75 a share with an annual dividend of $6.00 a sha
maria [59]

Answer: 6%

Explanation:

Based on the information given, when the flotation costs is ignored, the company's cost of preferred stock will be calculated thus:

Cost of preferred stock = Dividend on preferred stock / Price of preferred stock

Cost of preferred stock = 4.5/75 = 0.06 = 6%

Therefore, the cost of preferred stock is 6%.

6 0
3 years ago
Your company manufactures small kitchen appliances. It is introducing a new product line of appliances in designer colors with d
zepelin [54]

Answer:

B. Progressive elaboration

Explanation:

Progressive Elaboration is done for a specific project and then such planning is thoroughly descriptive and detailed, and the management tends to develop the plan more and more with each day, make it more accurate for the project.

In the given instance, since there is a requirement to know all the features along with characteristics of the project properly, the technique to be followed is Progressive Elaboration as all the detailed work will be done, and will be revised accordingly.

Therefore, the correct option is:

B. Progressive elaboration

6 0
3 years ago
Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business s
Neko [114]

Answer:

c. Internal Service Fund

Explanation:

Internal Service Fund -

It refers to the sum of amount required to track the motion of any goods and services from one department to another , is referred to as internal service fund .

The amount spend on the internal service fund is used to determine the complete cost of providing the services and goods .

For example , maintenance is an example of the internal service fund .

Hence , from the given information of the question ,

The correct answer is c. Internal Service Fund .

4 0
4 years ago
The board of directors of Capstone Inc. declared a $0.90 per share cash dividend on its $2 par common stock. On the date of decl
Bas_tet [7]

Answer:

A. Dividends 11,700 Dividends Payable 11,700

Explanation:

The journal entry to record the dividend declared is shown below:

Dividend A/c Dr $11,700

     To Dividend payable $11,700

(Being the dividend is declared)

The computation is shown below:

= (Number of shares issued - treasury stock) × cash dividend per share

= (20,000 shares - 7,000 shares) × $0.90

= 13,000 shares × $0.90

= $11,700

6 0
3 years ago
We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go
Brut [27]

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries,  but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

7 0
3 years ago
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