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Komok [63]
3 years ago
9

An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe

and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.8%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.)
Business
1 answer:
gavmur [86]3 years ago
7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Jill:

Weekly deposit= $96.15

The number of weeks= 30*52= 1,560

Interest rate= 0.098/52= 0.00189

Joe:

Annual deposit= $5,000

Number of years= 30 years

Interest rate= 9.8%

To calculate the final value of Jill and Joe, we need to use the following formula:

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

A= weekly/annual deposit

<u>Jill:</u>

FV= {96.15* [(1.00189^1,560)-1]} / 0.00189

FV= $916,853.88

<u>Joe:</u>

FV= {5,000*[(1.098^30)-1]} / 0.098

FV= $791,953.50

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The inventories of Berry Company for the years 2016 and 2017 are as follows: Cost Market January 1, 2016 $10,000 $10,000 Decembe
Hitman42 [59]

Answer:

Direct method:

December 2016:

Dr     costs of sale              $1,500

Cr     inventory                                    $1,500

to record the reduction in value of inventory

December 2017

Dr     costs of sale              $1,000

Cr     inventory                                    $1,000

to record the reduction in value of inventory

indirect method:

December 2016:

Dr    inventory allowance expense            $1,500

Cr    provision for inventory  allowance                       $1,500

to record the reduction in value of inventory

December 2017:

Dr    inventory allowance expense            $1,000

Cr    provision for inventory  allowance                       $1,000

to record the reduction in value of inventory

Explanation:

Under the direct method of inventory valuation,the reduction in inventory value is debited directly to costs of sale and credited to inventory in order to write down inventory to lower of cost and market value

The loss on inventory valuation in December 2016 is $1500($13,000-11,500) the amount by which cost is higher than market value.

The loss on inventory valuation in December 2017 is $1000($15,000-14000) the amount by which cost is higher than market value.

However, under the indirect method,the diminution in value of inventory is credited to  allowance provision account in the balance sheet and debited to allowance expense account in the income statement

6 0
3 years ago
___ is a method for developing the shortest schedule when the number or amount of available resources is fixed. a. Resource eval
STALIN [3.7K]

Answer:

C. Resource limited scheduling

Explanation:

Resource limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed. It is a project schedule which defines that when when activities are going to start, their finish dates and directly reflects and manifests the availability of all the resources needed for that project. This method is most appropriate when the resources for the project are scarce and limited and those resources can not be exceeded in any case.

4 0
3 years ago
Blossom Corporation had income from continuing operations of $10,895,300 in 2020. During 2020, it disposed of its restaurant div
pantera1 [17]

Answer and Explanation:

The preparation of the partial income statement is presented below:

                                     Blossom Corporation

                                    Income Statement (Partial)

                                          For the Year 2020

Particulars                                                            Amount (in $)

Income from continuing operations                     10,895,300

Income from discontinued operations:  

Less:

Loss from disposal of Restaurant net of tax                 -194,400  

Loss from the operation of discontinued                     -321,800  

Total expense                                                                -516,200

Net income                                                                 10,379,100

Earning per share  

Income from continued operations (10,895,300 ÷10,000,000)  $1.09

Loss from discontinued operations (516,200 ÷ 10,000,000)      ($0.05)

Earning per share  $1.04

8 0
3 years ago
The Federal Reserve ________ pay interest on reserves held on deposit. The European System of Central Banks ________ pay interes
aliina [53]

The Federal Reserve does not pay interest on reserves held on deposit. The European System of Central Banks does pay interest on reserves held on deposit.

<h3>Federal Reserve Board</h3>
  • In the past, reserve banks were unable to offer interest on deposits. The Emergency Economic Stabilization Act of 2008 brought about a shift in that.
  • The Federal Reserve Board had to increase the size of its balance sheet by purchasing Treasuries and mortgage-backed securities in order to increase the amount of liquidity available to the banking sector.

<h3> European System of Central Banks</h3>
  • The major objective is to preserve price stability or the euro's worth. Price stability is the most significant contribution monetary policy can make in this area because it is crucial for economic growth and job creation, two goals of the European Union.
  • The ECB has four decision-making bodies with the authority to carry out the institution's goals.

To learn more about Federal reserve Board refer to:

brainly.com/question/13084954

#SPJ4

5 0
2 years ago
In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very be
RUDIKE [14]

Answer:

Option (B) is correct.

Explanation:

Unit of account:

There are some functions of money or we can say that characterstics of money:

(a) Medium of exchange

(b) Store of value

(c) Unit of account

(d) Standard of deferred payments

Sea shells are precious items but one cannot properly split divide those sea shells into small denominations like money does. Money is easily storable, people use as a medium of exchange and unit of account.

By unit of account we mean that we can easily measure the value of goods and service and many things in monetary terms but we cannot measure in terms of sea shells.

That's why sea shells unfit to act as money today.

8 0
3 years ago
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