Answer:
FV= $21,887.13
Explanation:
Giving the following information:
Initial investment= $15,000
Number of periods= 6 years
Interest rate= 6.5% compounded annually
T<u>o calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 15,000*(1.065^6)
FV= $21,887.13
Answer:
Debit Retained earnings $36,000; credit Income Summary $36,000
Explanation:
The income statement has its last line as the net income/loss for the period. The income summary account is closed into the retained earnings.
The expense in the income statement is closed by crediting the account and debiting the income summary. For revenue, the account is debited and the income summary is credited.
Hence where the income summary account has a debit balance of $36,000, the entries to close it will be Debit Retained earnings $36,000; credit Income Summary $36,000
The potential risks that these three groups fall into the same category is that it is a low percentage and it is not a realistic proposition.
According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:
- 50% of salary must go towards mandatory expenses (housing rent payments, utilities, medical care, basic food, and transportation).
- 20% of the salary must be used for savings and debt payments (programmed savings for old age or a special event, or the payment of debts such as card payments, bank loans, among others).
- 30% of the salary must be allocated for non-priority expenses (it is the expenditure of money on experiences, objects, or others that are not essential for the individual).
This income distribution is unrealistic because most people spend more than 50% of their salary on compulsory expenses, reducing their economic capacity for other purposes.
In this way, the 20% destined to savings and payment of debts would be a minimum amount of the salary, which could have serious consequences such as:
- Inability to pay debts
- Inability to save for the future
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Price depends on the age and the age is the input variable in the price of a certain type of wine that depends on its age.
Norma Rose is buying shares in a mutual fund that invests in foreign stocks sold in securities markets throughout the world, excluding the United States. The mutual fund is buying are "International fund".
<h3>What are International funds?</h3>
A mutual fund that can invest in businesses anywhere in the globe, not just in the nation where its investors live, is known as an international fund.
Some characteristics of the international funds are-
- Global funds, which can invest in businesses from any country in the world, are different from international funds.
- Foreign funds and international funds are two synonyms for each other.
- Geographic portfolio diversification is the main advantage of investing in foreign mutual funds.
- Foreign market investing aids in the recovery from the current local market crisis.
- Global markets have a larger likelihood of long-term growth.
- Emerging markets, new economies, or speciality growth industries in international markets, like diamonds and tourism, are a few examples.
- Due to the booming emerging markets and as a hedge against the decline in the value of the dollar, international funds have fared well over the past 20 years.
Thus, International funds invest in non-U.S. markets, while global funds can hold both U.S. and non-U.S. companies in their portfolios.
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