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
Which of the following is an example of a specific purpose? A. I want my employees to understand and follow the new dress code p
Alla [95]

Answer:

D. a and c

Explanation:

I hope it helps.

8 0
2 years ago
A Goldsmith could hold some gold in reserve for depositors’ withdrawals, but ________________ excess gold and thereby make a pro
den301095 [7]

Answer: Loan out

Explanation:

Goldsmith is one of the many traditional form of medium of exchange used in the past. Whereby you placed your gold to a goldsmith and in return receive a receipt to use that as a medium of cash exchange.

If goldsmith could loan out excess gold they can make a profit from depositors fund. Because that excess gold gives them an opportunity to loan it out.

7 0
3 years ago
Gaining knowledge and skills is an
34kurt
Interpretation is correct answer
8 0
2 years ago
Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufactur
otez555 [7]

Answer:

D. outsourcing

Explanation:

Outsourcing -

It is the method in a business to hire people from any other company in order to perform a particular task , is known as outsourcing .

The practice of outsourcing have the objective , in order to increase the efficiency of the company or to accomplish any goal with in a very short period of time .

Hence , from the question ,

The Aluminium company Alumplus , outsource people from out side its company to produce the products .

8 0
3 years ago
What is the appropriate fiscal policy when an economy goes into recession?
notsponge [240]
The appropriate fiscal policy for when an economy goes into recession would be the expansionary fiscal policy.
7 0
2 years ago
Other questions:
  • If an economist argues that everyone gains from trade, what reasoning is most likely underlying her argument?
    15·1 answer
  • Suppose that goods x and y are substitutes and the price of good y falls. we would then expect
    10·1 answer
  • The Notarial Evidence Form is completed by
    15·2 answers
  • Wright Company's cash account shows a $31,100 debit balance and its bank statement shows $29,400 on deposit at the close of busi
    15·1 answer
  • Before you started applying for college, a job recruiter offered you a full-time cashier position at a department store, earning
    7·1 answer
  • The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to
    13·1 answer
  • Incurred manufacturing overhead costs a. $6,000 in indirect materials b. $9,200 in indirect labor (credit Wages Payable) c. $4,7
    7·1 answer
  • It is estimated that the net cash flows to be received from the copyright will be $63,000, and its fair value is $59,850. The ac
    10·1 answer
  • Southern Georgia school district is considering ordering 48 ​propane-fueled school buses.​ "They're healthier,​ they're cleaner​
    11·1 answer
  • Hygfgfngfjgfjggfjffgfjgfjfgtjdftr6j
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!