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Tems11 [23]
3 years ago
7

You will require $620 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reac

h your savings goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
brilliants [131]3 years ago
8 0

Answer:

Present value of money invested = 485.79 (Approx)

Explanation:

Given:

Future value = $620

Number of years = 5 years

Present value = ?

Rate of interest = 5% = 5/100 = 0.05

Computation of Present value of money invested:

Present value = \frac{Future\ value}{(1+r)^n}\\\\

Present \  value = \frac{Future\ value}{(1+r)^n}\\\\Present \  value = \frac{620}{(1+0.5)^5}\\\\Present \  value = \frac{620}{(1.5)^5}\\\\Present \  value = \frac{620}{1.277628156}\\\\Present \  value =485.786224

Present value of money invested = 485.786224

Present value of money invested = 485.79 (Approx)

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Answer:

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Explanation:

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7 0
3 years ago
Companies choose to Vertically Integrate for all of the following reasons, except____________.a. The company can perform the pro
QveST [7]

Answer:

The correct answer is letter "D": The company desires to enter new markets.

Explanation:

Vertical integration happens when a corporation buys other companies in the supply chain and manages them. There are two types of vertical integration: <em>backward </em>and <em>forward</em>. In backward vertical integration a corporation, like a manufacturer, owns companies that supply inputs to the manufacturing process for businesses.  

In forward vertical integration, a business owns another company in the supply chain to get closer to the end customer.

Thus, <em>vertical integration is not a technique companies use to enter new markets.</em>

8 0
3 years ago
A 401(k) plan and the nonprofit equivalent, called a 403(b) plan, are______ reduction plans that reduce your salary by the amoun
castortr0y [4]

A 401(k) plan and the nonprofit equivalent, called a 403(b) plan, are salary reduction plans that reduce your salary by the number of your contributions and result in a lower current tax liability. This is further explained below.

<h3>What is tax liability?</h3>

Generally, Both a 401(k) plan and its counterpart for nonprofit organizations, known as a 403(b) plan, are types of salary reduction plans. These programs cut your pay by an amount equal to the number of contributions you make and result in a reduced tax burden for the current year.

In conclusion, Your financial obligation to the government in the form of taxes is referred to as your tax liability. It is the entire amount of money that you are required to pay to the government as part of your obligation to pay income tax on profits such as salary, business, interest on income from investments, capital gains, and prizes from lottery tickets.

Read more about tax liability.

brainly.com/question/15394738

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3 0
2 years ago
Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations:
Korolek [52]

Answer:

I used an excel spreadsheet since there is not enough room here.              

Explanation:

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6 0
3 years ago
Celeste Nossiter borrowed $6200 from her father to buy a used car. She repaid him after 9 months, at an annual interest rate of
Pie

Answer:

$6,530.15

Explanation:

Calculation:

First, converting R percent to r a decimal

r = R/100

= 7.1%/100 = 0.071 per year.

Putting time into years for simplicity,

9 months / 12 months/year = 0.75 years.

Solving our equation:

A = 6200(1 + (0.071 × 0.75)) = 6530.15

A = $6,530.15

The total amount accrued, principal plus interest, from simple interest on a principal of $6,200.00 at a rate of 7.1% per year for 0.75 years (9 months) is $6,530.15.

3 0
3 years ago
Read 2 more answers
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