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lisabon 2012 [21]
3 years ago
6

Your son is born today and you want to make him a millionaire by the time he is 50 years old. You deposit $50,000 in an investme

nt account and want to know what annual interest rate must you earn in order to have the account value equal to $1,000,000 on your son's 50 th birthday.
Business
1 answer:
mel-nik [20]3 years ago
7 0

Answer:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

See explanation below.

Explanation:

We assume that we have compounding interest.

For this case we can use the future value formula given by:

FV= PV (1+\frac{i}{n})^{nt}

Where:

FV represent the future value desired = 1000000

PV= represent the present value = 50000

i = the interest rate that we desire to find in fraction

n = number of times that the interest rate is compounding in 1 year, since the rate is annual then n=1

t = represent the number of years= 50 years

So then we have everything in order to replace and we got:

1000000= 50000 (1+ \frac{i}{1})^{1*50}

Now we can solve for the interest rate i like this:

20 = (1+i)^{50}

20^{1/50} = 1+i

i = 20^{1/50} -1 = 0.0617

And if we convert this into % we got i = APR = 6.17 \%

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4 0
3 years ago
Angela has an annual contract with Stenbach Service Centre to provide property maintenance services; this includes lawn care, sn
timurjin [86]

Answer:

Angela and Stenbach Service Centre

Contract for Service and Contract of Service:

1. Angela has a contract for service.

2. Factors used to decide whether a contract is for service or of service:

a) Employment terms are slightly different from business contract terms.

b) Employees are paid Wages and Salaries, while contractors are paid fees.

c) Employees do not submit monthly invoices for payment, but contractors do.

d) Angela fills tax forms for herself and remits the taxes, so she is self-accounting with respect to her income taxes, unless withholding taxes like Sales taxes.  An employee's income tax is deducted from her salary before payment and the company remits the taxes to the IRS.

Explanation:

The agreement between Angela, a self-employed individual, and Stenbach Service Centre is a contract for service.   A contract of service is an employment contract between Stenbach Service Centre, the employer, and the Payables Supervisor, an employee, for example.  Essentially, Angela can be described as an outsourcer for services vendor or service provider to Stenbach Service Centre, an outsourcer of service company.  Angela is engaged for a fee to carry out property maintenance services, including lawn care, snow removal, and parking lot maintenance.  She is an independent contractor with Stenbach.  She does not need to work on any day and she can subcontract her work by hiring others to help her discharge the service.  An employee, like Chris, cannot hire another person to discharge his responsibilities and must work on designed days.

Another important difference is that Angela submits monthly invoices for actual work done.  An employee does not have to submit an invoice in order to be paid for work done.  Angela's invoices will not be of the same amount from one month to the other, unlike Chris' whose salary pay sheet may be static in amount from month to month.  

5 0
3 years ago
Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reporte
otez555 [7]

Answer:

Answer 1 - increment in money due will go under working exercises and $4000 will be appeared in negative there since it will decrease the money balance  

Answer 2 - issuance of preferred stock will go under financing exercises and since they are giving offers so income will increment by $115 × 10000 = $1150000  

Answer - 3 For devaluation Because we start setting up the announcement of incomes utilizing the overall gain figure taken from the salary explanation, we have to alter the net gain figure with the goal that it isn't diminished by Depreciation Expense. To do this, we include back the measure of the Depreciation Expense. So we have to add $14000 to net gain of $90000  

For bond premium amortization, its recorded in the working exercises area of the announcement of incomes. Under the roundabout strategy, the amortization of security premium is deducted from net gain since it decreases premium cost and, along these lines, expands net gain without a real money inflow.  

Answer - 4 Acquisition of property will go under contributing activities so in the event that we purchase more place where there is $20000, at that point it will lessen the money by $20000

6 0
3 years ago
Read 2 more answers
Assume that GDP per capita for two countries is displayed in plot with a ratio scale on the y-axis and a linear time scale (in y
jenyasd209 [6]

Answer:

The correct answer that fills the gaps are: constant ; increasing.

Explanation:

GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.

The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.

The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.

7 0
3 years ago
What is the basic purpose of the consumer price index (CPI)? A. to track monthly changes in prices paid by urban consumers B. to
Elina [12.6K]

Answer:

A). to track monthly changes in prices paid by urban consumers.

Explanation:

CPI(Consumer Price Index) is characterized as 'a statistical estimate of the price level of goods and services bought by consumers for consumption purposes by the households.' It primarily aims to estimate the change or swap in the prices of the weighted average price of the common basket(consumption goods, as well as, services that the consumers pay for). It is calculated using the formula;

CPI_{t}  = \frac{C_{t} }{C_{0} } * 100

where,

CPI_{t} = current Consumer Price Index

C_{t} = Current price basket

C_{0} = Cost of price basket in the base year

It assists in deducing whether the average prices have received a fall or rise and determines inflation or deflation. Thus, <u>option A</u> is the correct answer.

6 0
3 years ago
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