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swat32
3 years ago
6

Use the compound interest formula,     . kelly opened a savings account with $500 she received at eighth grade graduation 4 year

s ago. the account pays 2.5 percent compounded daily. how much should be in the account now? round to the nearest dollar.
Business
2 answers:
PolarNik [594]3 years ago
7 0

The answer is “$553”.

Kelly’s account pays = 2.5 percent compounded daily = 2.5/100 = 0.025

There are 365 days in one year, so 

<span>
i = .025/365 </span>

so number of days = n = 4(365) = 1460 

Amount = 500(1 + .025/365)^1460 

<span>=552.59 = $553</span>

Alik [6]3 years ago
7 0
<span>The formula for calculating annual compound interest, including principal sum, is: A = P (1 + r/n)^(nt) Where: A = the future value of the investment P = the principal investment amout or the initial deposit r = the annual interest rate n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed. So we have that P = $500 r = 2.5% = 0.025, t = 4 years and n = 365 (since the interest is compounded daily). Plugging into the eqn we have A = 500 ( 1 + (0.025)/(365))^(365*4) A = $552.58</span>
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Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210
kkurt [141]

Answer:

a). Internal growth rate of the company=12.02%

b). Internal growth rate for beginning of period assets=14.71%

c). Internal growth rate for end of period total assets=10.16%

Explanation:

a). The internal growth rate of the company can be expressed as shown;

IGR=ROA×DR

where;

IGR=internal growth rate

ROA=return on asset=Net income/Total average assets

DR=dividend ratio=1-(dividend payment/net income)

In our case;

Return on asset=Net income/total average assets

Net income=$27,000

Total average assets=(Assets at the beginning of the year+assets at the end of the year)/2

Total average assets=(145,000+210,000)/2=$177,500

Return on asset=(27,000/177,500)×100=15.21%

Dividend ratio=1-(dividend payment/net income)=1-(5,800/27,000)

Dividend ratio=1-0.21=0.79

Internal growth rate=return on asset×dividend ratio

Internal growth rate=15.21%×0.79=12.0159%

Internal growth rate of the company=12.02%

b). Internal growth rate for beginning assets

Return on asset=Net income/total assets at the beginning of the year

Net income=$27,000

Total assets at the beginning of the year=145,000

Return on asset=(27,000/145,000)×100=18.62%

Dividend ratio=1-(dividend payment/net income)=1-(5,800/27,000)

Dividend ratio=1-0.21=0.79

Internal growth rate=return on asset×dividend ratio

Internal growth rate=18.62%×0.79=14.71%

Internal growth rate for beginning of period assets=14.71%

c). Internal growth rate for end of period total assets

Return on asset=Net income/total assets at the beginning of the year

Net income=$27,000

Total assets at the end of the year=210,000

Return on asset=(27,000/210,000)×100=12.86%

Dividend ratio=1-(dividend payment/net income)=1-(5,800/27,000)

Dividend ratio=1-0.21=0.79

Internal growth rate=return on asset×dividend ratio

Internal growth rate=12.86%×0.79=10.16%

Internal growth rate for end of period total assets=10.16%

8 0
2 years ago
In 2018, Rachel received a $1,900 refund of state income taxes that she paid in 2017. In 2017, Rachel claimed itemized deduction
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Answer:

$1,100

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= Itemized deductions - standard deductions

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The $1,100 would be included in the $1,900 refund which is presented in her 2018 gross income.

The excess amount between itemized deductions and standard deductions would indicate the extra refund amount which is already included in its $1,900 refund amount

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Answer:

Effects

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the real wage​ rate decrease

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Explanation:

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Thinking in the graph of the labor market where combines hour real wage with the quantity of labor, if we increase the population ,  that means the demand of labor will increase so,  the wage will  decrease.

GDP per hour worked is a measure of labor productivity

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