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Scilla [17]
2 years ago
11

Earnings on an IRA grow until

Business
1 answer:
frez [133]2 years ago
3 0

Earnings on an IRA grow until C. you take the money out.

An IRA will continue to earn interest and gain value until your money is taken out of the account. Once the money is taken out, the interest will stop being earned. An IRA is a good savings plan to invest your money into for potential gain. There are low and high risks with investments but IRA's are pretty easy to navigate for first time investors.

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Asking that all sources of income be revealed on a credit application is prohibited by the ecoa.
andreev551 [17]
That is true. Good luck on your future endeavors. 
7 0
3 years ago
If _________ is constrained, we should __________ the staffing level to lower capacity.
Goryan [66]
 Capacity is constrained when demand exceeds supply and the flow rate is equal to process capacity. The capacity constraint<span> is a factor that prevents a business from achieving more output. </span><span>
If capacity is constrained, we should raise the staffing level to lower capacity.</span>
4 0
3 years ago
James Perkins wants to have a million dollars at retirement, which is 15 years away. He already has $200,000 in an IRA earning 8
Lelu [443]

Solution :

Given :

James needs $ 1,000,000 after 15 years.

His IRA deposit is $ 200,000 and is earning at the rate of 8% per annum.

Maturity value of $200,000 after 15 years = 2000000 \times( 1.08)^{15}

                                                                     = $ 634,434.

Balance fund needed after 15 years = 1,000,000 - 634,434

                                                           = $ 365,566

Therefore, the future value of the annuity is :

FV=A[\frac{(1+k)^n-1}{k}]

Here, FV = future annuity value = 365,566

            A = periodical investment

            k = interest rate = 8%

            n = period = 15 years

∴365566 = A\frac{[(1.08)^{15}-1]}{0.08}

       A = 13,464

Thus, James needs to save $ 13,464 each year end to reach his target.

4 0
3 years ago
If you need money, what are three alternatives to taking a cash advance on your credit card?
sertanlavr [38]
For me ,I will not taking cash advance on my credit card
3 0
3 years ago
In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clot
Kazeer [188]

Answer:

Consider the following explanation

Explanation:

a) J. Crew is issuing its catalogs monthly in response to inflation. This will incur cost and it is known as 'Menu Cost'.

b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.

c) Maria is witnessing loss of purchasing power because of hyper inflation. In such scenario, cost keeps rising and product's price could be higher a few hours later. This was witnessed in Germany as well as in Zimbabwe. People run to the stores as soon as they get cash or salary. It is known as 'shoe leather cost'. People make frequent trips to banks or stores but do not keep cash in fear of losing value.

d) Gita actually earned only 5% on her portfolio but as her income is in taxable bracket so she has to pay 20% tax. Her income from portfolio not even compensated inflation. This is a redistribution cost and also known as fiscal drag. More people fall into bracket because higher nominal income but real income is neglected which makes people worse off.

e) Father thinks that son is earning far more than him but inflation over the period of time erodes purchasing power and it could be possible that current income might be lower, same or higher comparing to inflation data. However, if it is lower then it is obviously loss of purchasing power.

5 0
3 years ago
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