You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit
$15,000 at the end of each year for the next 10 years. You expect to earn 8 percent each year.a. Determine how much you will have saved after 10 years.b. Determine the amount saved if you were able to deposit $17, 500 each year.c. Determine the amount saved if you deposit $15,000 each year, but with 10 percent interest.
<u>a. Determine how much you will have saved after 10 years</u>
This is an ordinary annuity question and you are required to find the Future value (FV) at year 10. Using a financial calculator, key in the following inputs;
Total duration of investment; N = 10
Recurring payment; PMT = -15,000
Interest rate ; I/Y = 8%
PV = 0
then compute Future value; CPT FV = 217,298.437
Therefore, in 10 years, you will have saved $217,298.44 which does not meet your goal of half a million dollars.
<u>b. Determine the amount saved if you were able to deposit $17, 500 each year.</u>
With the recurring payment increasing to 17,500 per year and the interest rate remaining at 8%, find the new Future value by keying in the following inputs;
Recurring payment; PMT = - 17,500
Interest rate ; I/Y = 8%
Total duration of investment; N = 10
PV = 0
then compute Future value; CPT FV = 253,514.843
Therefore, in 10 years, you will have saved $253,514.84.
<u>c. Determine the amount saved if you deposit $15,000 each year, but with 10 percent interest.</u>
It is still an ordinary annuity question , however, the recurring payment(PMT) will be 15,000 as before but with an annual interest rate(I/Y) of 10%. Using a financial calculator, key in the following inputs;
Total duration of investment; N = 10
Recurring payment; PMT = -15,000
Interest rate ; I/Y = 10%
PV = 0
then compute Future value; CPT FV = 239,061.369
Therefore, in 10 years, you will have saved $239,061.37 .
According to the question, Taylor likes the flexible values so that she creates her own comfortable schedule.
The flexibility in the schedule provide the job satisfaction and balanced the life as she loves the lifestyle of being sales person.
It also helps in reduce the stress if you are satisfied with the work-life balance and also increase the productivity of an organization. Therefore, Flexibility is the correct answer.
The correct answer is A. The Lorenz Curve is a curve that shows the percentage of total household incomes received successively larger fractions of the population, starting with the poorest group.
Explanation:
The Lorenz curve represents the relationship between the cumulative percentage of the population size and the cumulative percentage of the income of the same population.
A Lorenz curve is a graph in which income is cumulatively plotted against the population. A given point on the vertical axis represents the sum of all incomes up to a certain level. The point on the curve to the right of it corresponds to the number of people who have an income up to that level.
The curve always runs lower, which means that at any given point on the curve, the percentage of total national income is lower than the percentage of people who have an income up to that level. On such a curve we can read, for example, that 25% of the income collectors together own 8% of the total income.
There are many disadvantages of investing in real estate and one of it is A) Investors need expert help.
<h3>What is Real estate?</h3>
The investment in property is known as real estate investment. There are many investors who invests in such assets, and earn rentals and capital gains.
The investment in real estate needs expert advice as the person who is the advisor should have the market information so that the perfect price can be quoted in order to purchase or sell an asset.
It motivates me to choose it since it can help to make most of the other issues easier to tackle since where there is violent crime, there is usually the other issues stated in the list.
