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Radda [10]
3 years ago
7

Finding the required interest rate: Your parents will retire in 18 years. They currently have $250,000, and they think they will

need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds? excel formula
Business
1 answer:
Salsk061 [2.6K]3 years ago
7 0

Answer:

i= 8% annual compunded

Explanation:

Giving the following information:

Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement.

We need to calculate the interest rate required to reach the $1 million goal in 18 years without any additional deposit.

FV= PV*(1+i)^n

Isolating i:

i= [(FV/PV)^(1/n)] - 1

i= [(1,00,000/250,000)^(1/18)] - 1= 0.08

i= 8% annual compunded

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Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60.
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Answer:

D) Cash 45,540 Accounts receivable 45,540

Explanation:

The journal entry is shown below:

Cash A/c Dr $45,540

        To Accounts receivable A/c  $45,540

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8 0
3 years ago
Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible. July 29 Reinstated the acc
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Answer:

Mar 17.

6150 Bad Debt Expense  $1.000 - Debit

1010 CASH Operating Account $275 - Debit

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1290 A/REC Allowance for Uncollectible Accounts  $1.000 - Debit

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Explanation:

7 0
3 years ago
The main reason people save during their working years is: a. a preference toward matching income with spending over time. b. a
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6 0
3 years ago
Read 2 more answers
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