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otez555 [7]
3 years ago
13

Example 11: Ellen just turned 35 years old and she is planning for retirement by saving some money every year. She will save $10

,000 in a year. She will be able to increase her savings by 5% per year. With this plan, if she earns 10% per year on her savings, how much will Ellen have saved at age 65?
Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

Final value= $4,347,451.46

Explanation:

Giving the following information:

She will save $10,000 in a year. She will be able to increase her savings by 5% per year. With this plan, she earns 10% per year on her savings.

To calculate the final value, we need to use the following formula:

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

A= annual deposit= 10,000

i= 0.10 + 0.05= 0.15

n= 65-35= 30

FV= {10,000*[(1.15^30)-1]}/ 0.15= $4,347,451.46

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How much water needs to be mixed with three liters of
irinina [24]

Answer:

The volume of water needed=0.86 liters

Explanation:

Step 1: Form an equation

The equation can be expressed as follows;

(Ac×Va)+(Wc+Vw)=Fc(Va+Vw)

where;

Ac=initial concentration of antifreeze

Va=volume of antifreeze in liters

Wc=concentration of water

Vw=volume of the water in liters

Fc=final concentration of the antifreeze

This expression can be written as;

(concentration of antifreeze×volume of antifreeze in liters)+(concentration of water×volume of the water)=final concentration of the antifreeze(volume of antifreeze in liters+volume of the water in liters)

In our case;

Ac=45%=45/100=0.45

Va=3 liters

Wc=0

Vw=unknown

Fc=35%=35/100=0.35

Replacing;

(0.45×3)+(0×Vw)=0.35(3+Vw)

1.35=1.05+0.35 Vw

0.35 Vw=1.35-1.05

0.35 Vw=0.30

Vw=0.3/0.35=0.86

Vw=0.86 liters

The volume of water needed=0.86 liters

5 0
4 years ago
A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $1
dolphi86 [110]

Answer:

Accounting rate of return is 10%

Explanation:

Given data

new machine = $48,000

sales = $16,000

time = 10 year

depreciation = $4,000 / year

factory overhead  = $8,000 + depreciation $4,000

net income = $2400

tax rate = 40%

to find out

accounting rate of return for the machine

solution

we know that

Accounting rate of return =  after tax net income / average investment

so here we know net income after tax = $2400

so we find investment first

Average investment = (Initial investment) / 2

Average investment = 48000 / 2 = $24000

so

Accounting rate of return =  after tax net income / average investment

Accounting rate of return =  2400 / 24000  = 0.1 = 10%

Accounting rate of return is 10%

6 0
4 years ago
A geologist is part of what career field?
fiasKO [112]

Environment sciences

3 0
3 years ago
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:As compare
LenaWriter [7]

Complete Question:

As compared to a traditional income statement format, an income statement organized by cost behavior does not include:

a contribution margin.

b cost of goods sold.

c operating income.

d revenues

Answer:

As compared to a traditional income statement format, an income statement organized by cost behavior does not include:

b cost of goods sold.

Explanation:

Cost behavior describes the classification of costs into four main patterns because of the way they respond to changing activity levels.  The four basic cost behavior patterns are fixed, variable, mixed (semi-variable), and step.  These cost behavior patterns remain valid within the relevant production and sales range or activity level or volume.

5 0
3 years ago
Standard rate per direct labor-hour $ 2 Standard direct labor-hours for each unit produced 3 Units manufactured 1,000 Actual dir
Nastasia [14]

Answer:

Variable overhead efficiency variance= $600 unfavorable

Explanation:

Giving the following information:

Standard rate per direct labor-hour $2

Standard direct labor-hours for each unit produced 3

Units manufactured 1,000

Actual direct labor-hours worked during the month 3,300

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

<u></u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (1,000*3 - 3,300)*2

Variable overhead efficiency variance= $600 unfavorable

5 0
3 years ago
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