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Alinara [238K]
3 years ago
8

Today is date 0. In 10 years, you plan to retire and buy a house in Norman, OK. In terms of a time line, you will retire at the

end of year 10. The house you are looking at currently costs $200,000 and is expected to increase in value each year at a rate of 5% compounded annually. Assuming you can earn 10% annually on any investment you might make, how much must you invest at the end of each of the next 10 years to be able to buy your dream home when you retire?
Business
1 answer:
Marianna [84]3 years ago
6 0

Answer:

$20,441.67

Explanation:

the present value of your house is $200,000, its future value = $200,000 x (1 + 5%)¹⁰ = $325,778.93

you can earn a 10% annual interest rate for 10 years, that means that we can use a future value of an annuity factor = 15.937

your annual investment = future value of the house / annuity factor = $325,778.93 / 15.937 = $20,441.67

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Three years ago, the City of Recker committed to build a park and music venue by the river. It was expected to cost $2.5 million
Rufina [12.5K]

Answer: C. escalation of commitment

Explanation:

Escalation of commitment bias refers to a situation where an entity continues to invest resources in an endevor that is not working out which means it is not contributing any value but is still being invested in.

The Town Council can see what has happened to the town and how their restaurants have suffered. The project has also stalled and yet they keep pushing it on. They are committed to an endevor that is not working out so this is an escalation of commitment bias.

5 0
3 years ago
Match each type of tax with an example of its use.
Fofino [41]

<u>Answer:</u>

Excise tax              :$0.30 tax on a gallon gasoline

Consumption tax  : 20% tax on wages earned

Income tax            : 9% tax on the sale of luxuries

<u>Explanation:</u>

Excise tax are the taxes charged to individuals on purchase of certain goods. Excise taxes are included with the price of the product. One of the major excise tax is charged on the gasoline for vehicles.

Consumption tax are the indirect taxes that are charged on usage of goods and services. They are collected in the form of sales tax and value added tax.

Income tax is the tax collected by the government for earning money through business or work.

8 0
2 years ago
Why should "for deposit only" be written in a check along with the back account number when endorsed?
jok3333 [9.3K]
It to help people not to get to much money in from there cheeking account
3 0
3 years ago
Read 2 more answers
Your goal is to withdraw $25,000 in 10 years. To get the money for this withdrawal, you will make the aforementioned five equal
NikAS [45]

Answer:

the interest rate is missing, so I looked for similar questions and found that the semiannual interest rate is 3%.

first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.

You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:

PV = $25,000 / (1 + 3%)¹⁶ = $15,579.17

that is now the future value of our annuity due:

FV = semiannual deposit x FV annuity due factor (3%, 5 periods)

$15,579.17 = semiannual deposit x 5.46841

semiannual deposit = $15,579.17 / 5.46841 = $2,848.94

7 0
2 years ago
Should a company alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the compa
nalin [4]
NO. The company should not <span>alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the company does business. Especially if the alteration made is against company polity and ethics. 

The marketing campaigns must represent the authentic stance of the company. It should be presented in such a way that it gives out positive responses from clients and potential clients regardless of market sector.


</span>
8 0
2 years ago
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