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
Paul [167]
3 years ago
14

Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not

make any withdrawal until she turned 65 (i.e., 30 years after she stopped saving). Her twin sister, Jane did not save anything during the 1st 10 years (during age 25-30) but saved $5,000 per year for 30 years (during age 35-65). What will be the difference in their retirement account balance at age 65, if their investments earned an average return of 8.5% during the entire period
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Susan:

Annual deposit= $5,000 for 10 years

Lumo-sum for 30 years

Interest rate= 8.5%

Jane:

Annual deposit= $5,000 for 30 years.

<u>First, we will calculate the future value of Susan:</u>

<u></u>

First 10 years:

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

A= annual deposit

FV= {5,000*[(1.085^10)-1]}/0.085

FV= $74,175.50

Last 30 years:

FV= PV*(1+i)^n

FV= 74,175.50*(1.085^30)

FV= $857,050.14

<u>Jane:</u>

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

A= annual deposit

FV= {5,000*[(1.085^30)-1]}/0.085

FV= $621,073.63

<u>Earnings difference= 857,050.14 - 621,073.63= $235,976.51 in favor of Susan.</u>

You might be interested in
Hoi Chong Transport, Ltd. Operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven
Ede4ka [16]

Answer:

The total cost will be "$1,279,286.25".

Explanation:

The total cost at 125000 Km will be:

=125000\times  12.520

=1,565,000 ($)

The total cost at 90000 Km will be:

=90000\times 16.5

=1,485,000 ($)

The variable cost will be:

=\frac{(1,565,000 - 1,485,000)}{(125000 -90000) }

=2.28571 ($)

Now,

Fixed cost = Total \ cost -variable \ c ost

                  = 1,565,000 - 125000\times 2.28571

                  = 1,279,286.25 ($)

5 0
3 years ago
Why do you think that luxury brands are particularly interested in investing in social media influencers?.
cestrela7 [59]

Answer:

I think they are interested because partially social media influencers have a younger audience so when they see their "idol" promoting such and such there more like to want it, Also  They can lend luxury brands a voice of authenticity and have the potential to produce original brand materials.

Explanation:

Because everyone thinks they can have it because an influencer got one

        Hope this helps :)

7 0
2 years ago
Dawn grew up helping her father work on cars in his auto repair shop and developed into an excellent auto technician. Because of
OlgaM077 [116]

Answer: The stereotypes have led Dawn to seek out companies that value Gender Egalitarianism. Therefore the answer is TRUE. Option A.

Explanation: Gender Egalitarianism simply refers to the phenomenon whereby there is equality among both sexes, and a situation in which both sexes, regardless of gender, possess equal access to opportunities without discrimination.

Gender Egalitarianism can also be referred to as Gender Equality.

In a society with high Gender Egalitarianism, the following can be observed:

1. Women are key decision makers.

2. Women have attained the same level of education as men.

3. Women are in more positions of authority.

4. Women are segregated less in the workplace.

3 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
Delvig [45]

Answer:

10.5%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

Risk free rate of return = 7%

Market rate of return = 14%

And, the beta is 0.5

So the expected return is

= 7% + 0.5 × (14% - 7%)

= 7% + 0.5 × 7%

= 7% + 3.5%

= 10.5%

4 0
3 years ago
Workers in contributing to the common good is
Katarina [22]
A worker's success in contributing to the common good is determined by how well one does his or her job. One way is to pay tax contributions properly. Another way is to be proactive and open-minded with regards to work. Lastly, they must also know how to motivate others.
4 0
3 years ago
Other questions:
  • Consider a two-firm oligopoly facing a market inverse demand curve of P = 100 – 2(q1 + q2), where q1 is the output of Firm 1 and
    14·1 answer
  • A stock market is a public market for trading a company's stocks and derivatives. The bid-ask spread in a dealer market represen
    5·1 answer
  • If you cause a car accident which type of insurance will require you to pay the least out of pocket
    14·2 answers
  • Organizations that advance a particular cause or belief are called __________. a. interest groups b. political action committees
    13·2 answers
  • Hope Springs needs tablet computers that are fast, include 24/7 tech support, and include a generous volume discount. These crit
    13·1 answer
  • Consider a $1000 bond that pays an annual interest rate of 8% and matures in two years. The prevailing interest rate has dropped
    12·1 answer
  • In Year 4 of the simulation you should launch a new bike into either the Road Bike Market or the Youth Bike Market. Road Bikes r
    10·1 answer
  • Patrick is the CFO of Reed Inc. Patrick says that RI earned $13 million last year and maintains a 30% dividend payout ratio. The
    9·1 answer
  • This table shows the balance in an account if monthly deposits of $10 were compounded monthly.
    15·1 answer
  • Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!