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Margarita [4]
2 years ago
8

The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for i

nvesting these funds.
A savings account earning 1% interest per year.

A U.S. Treasury bond mutual fund earning 3% interest per year.

A stock market mutual fund earning 8% interest per year.

How long would it take to double your savings in each of these 3 accounts?
Business
1 answer:
AlekseyPX2 years ago
3 0

Answer:

a. 7,000 years

b. 2,333 years

c. 875 years

Explanation:

Based on rule of 70, we can have the following formula to do the calculation:

Number of years to double = 70 ÷ Interest rate per year .................... (1)

We can now calculate as follows:

a. A savings account earning 1% interest per year.

Number of years to double = 70 ÷ 1% = 7,000 years

b. A U.S. Treasury bond mutual fund earning 3% interest per year.

Number of years to double = 70 ÷ 3% = 2,333 years

c. A stock market mutual fund earning 8% interest per year.

Number of years to double = 70 ÷ 8% = 875 years

Note:

It can be observed that the higher the interest rate, the lower the number of years it will take the investment to double.

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4 0
3 years ago
Mobile Homes reported the following in its financial statements for the year ended December​ 31, ​: 2018 2017 Income Statement N
kirill [66]

Answer:

Mobile Homes

Computation of:

1. Collections from customers

Beginning Accounts Receivable    $615

Net Sales                                       25,118

Less ending accounts receivable    798

Collections from customers   $24,935

2. Payments for merchandise inventory

Beginning Accounts Payable    1,364

Purchases                                18,725

Ending Accounts payable         1,547

Payments                             $18,542

3. Payments of other operating expenses:

Accrued liabilities:

beginning                      851

Operating expenses 4,632

Less ending                  938

Cash payments        4,545

4. Acquisition of property plant and equipment:

Beginning cost = $4,622

Ending cost =       $3,671

Acquisition =         $951

5. Amount of borrowing with:

a) Long-term liabilities:

Ending        $477

Beginning  $461

Borrowing    $16

b) A-one paying no long term liabilities:

Accrued Liabilities:

Ending        $938

Beginning   $851

Borrowing    $87

6. Payment of cash dividends:

Retained Earnings $3,784

Net Income                1,611

Total available       $5,395

Retained earnings  (5,021)

Dividends paid        $374          

Explanation:

a) Data and Calculations:

Mobile Homes Financial Statements for the years ended December​ 31:

                                               2018             2017

Income Statement

Net Sales Revenue              $ 25,118      $ 21,893

Cost of Goods Sold                18,074          15,501

Depreciation Expense                271              234

Other Operating Expenses    4,632           4,277

Income Tax Expense                530              482

Net Income                             $ 1,611           1,399

                                               2018             2017

Balance Sheet

Cash                                          21                 19

Accounts Receivable             798              615

Merchandise Inventory       3,483          2,832

Property, Plant, and

Equipment, net                   4,351          3,437

Accounts Payable                1,547          1,364

Accrued Liabilities                 938             851

Long-term Liabilities              477             461

Common Stock, no par         670             443

Retained Earnings              5,021           3,784

Property, plant, and equipment:

PPE net          4,351          3,437

Depreciation     271            234

Cost               4,622         3,671

Purchases:

Ending inventory        3,483

Cost of goods sold   18,074

Beginning inventory (2,832)

Purchases                 18,725

6 0
2 years ago
Which memo provided advanced general principles to consider in cases involving corporate wrongdoing in that it makes clear that
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Answer:

E. Thompson memo

Explanation:

The name 'Thompson Memo' was used to honor the Deputy attorney General that first issued the memo in 2003. His name is Larry Thompson.

The memo was created to distinguished the line between the 'honest mistake' that the company might do and an actual wrongdoings that must be punished by law.

The memo consist of several criteria that future prosecutors can use to determine whether a company should be punished or not. Those criterias are:

- The nature/seriousness of the offense

- Whether they did a similar 'mistake in the past

- Whether the company admit the mistake by their own or whether it's exposed by other people

- Whether the company proposed a remedial action.

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2 years ago
Blake Company has $15,000 cash at the beginning of June and anticipates $50,000 in cash receipts and $34, 500 in cash disburseme
rodikova [14]

Answer:

balance of the loan  = $4500

correct option is d. $4, 500

Explanation:

given data

cash at the beginning = $15,000

cash receipts = $50,000

cash disbursements = $34, 500

minimum cash balance = $10,000

maintains = $20,000

company owes = $15,000

to find out

balance of the loan

solution

we get here first excess that is

excess = $15,000 + $50,000 - $34, 500

excess = $30500

so used to loan replay will be here as

used to loan replay  = $30500 - $20,000

used to loan replay  = $10500

so balance of loan will be here

balance of the loan  = $15,000 - $10500

balance of the loan  = $4500

correct option is d. $4, 500

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1.) Many American workers lost their jobs

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