Can anyone help Please ‍♀️

calculate the following future value given the assumptions below: Assume an individual invests $250/mo for 30 years at an expect

xz_007 [3.2K]

According to the Question, We are given,

An individual invests $250/m for 30 years at an expected rate of return of 8 percent.

To Calculate the Future Value,

<h3><u>SOLUTION</u></h3>

Here, the deposits will be same every month, so it is an annuity. We will use the following future value of annuity formula:

FVA = P × ((1 + r)ⁿ - 1 / r)

where, FVA is future value of annuity,

P is the periodical amount = $250,

r is the rate of interest = 8% pa,

so monthly rate = 8% / 12 = 0.67%

and n is the time period = 30 × 12 = 360 months

Now, putting these values in the above formula, we get,

FVA = $250 × ((1 + 0.6667%)360 - 1 / 0.6667%)

FVA = $250 × ((1 + 0.006667)360 - 1 / 0.006667)

FVA = $250 × ((1.006667)360 - 1 / 0.006667)

FVA = $250 × ((10.9357296578 - 1 / 0.006667)

FVA = $250 × (9.9357296578 / 0.006667)

FVA = $250 × 1490.28493442

FVA = $372571.23

So, future value is $372571.23

To know more about Future Value, check the given links.

brainly.com/question/24703884

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3 0

2 years ago

Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary

forsale [732]

Answer:

deferred income tax benefit during 2018: 6,700

deferred income tax liability ending balance 27,400

Explanation:

beginning deferred tax laibility 34,000

this will change to 21,000 for the tax rate change

(100,000 x 21% = 21,000)

thus there is a decrease of 13,000 in the tax liablity

Then:

book income 400,000

temporary differenc(net): (30,000)

Taxable income 370,000

30,000 x 21% = 6,300 additional deferred tax expense

13,000 benefit - 6,300 deferred tax expense = 6.700 benefit

5 0

3 years ago

are built and maintained by local, state, and federal governments. A. All public roads B. All roads C. All private roads D. Some

saveliy_v [14]

Answer:

B.

Explanation:

6 0

3 years ago

Read 2 more answers

Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, fo

mamaluj [8]

Answer:

Kate will continue to operate in the short-run but plan on she will exit the business in the long-term

Explanation:

Kate's decision should be guided by her business's performance in terms of profitability. Kate is selling her meal at $5, but her total cost of serving the meal is $5.20. It means the business is operating at a loss.

Kate must start plantation on how she will leave that business. She may continue operating but only for a short while. Soon, she will find it hard to stay open because the business is loss-making. Kate will, therefore, continue operations in the short run. In the long term. Kate must plan on exiting the business.

4 0

3 years ago

A change in Accounting Method would be necessary because of which of the following circumstances?

charle [14.2K]

Answer:

b) A decrease in ownership percentage from 25% to 15%

Explanation:

There is change in accounting method when the shareholding is 20% or more.

Under Consolidation there are two methods:

Equity method: This is used when the shareholding is 20% or more, and there is significant influence. Under this method all the assets and liabilities are accumulated in the consolidated balance sheet.

Proportional Consolidation method: This is generally used when the shareholding is merely shown as an investment, and the balances of assets and liabilities are not accumulated.

Thus, there is a change in method of accounting when the shareholding is more than 20%. This is in case b as change is from 25% to 15% and thus, it will change from equity method to proportional consolidation method.

5 0

3 years ago