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oksian1 [2.3K]
3 years ago
12

You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a lo

cal bank that pays 7% annual interest. The client wants to deposit an amount that will provide her with $1,005,500 when she retires. Currently, she has $302,200 in the account. How much additional money should she deposit now to provide her with $1,005,500 when she retires?
Business
1 answer:
max2010maxim [7]3 years ago
4 0

Answer:

$283,005

Explanation:

The computation of the additional money that she deposited now is shown below:

As we know that

Future value = P × FV (7%, 8 Years)

Here

Future value = $1,005,500,

P represent the deposited amount

and FV (7%, 8 Years) is the future value (FV) of $1 at 7% for 8 years. Its value is to be determined from future value table.

From the table, the value of FV (7%, 8 years) is 1.7182.

Now

$1,005,500 = P × 1.7182

P = $1005500 × 1.7182

P = $585205

Now

The Additional deposit amount is

= $585,205 - $302,200

= $283,005

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A project is expected to generate annual revenues of $119,300, with variable costs of $75,400, and fixed costs of $15,900. The a
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Answer:

c. $19,823

Explanation:

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4 years ago
The following economic functions have been derived by the Finance Manager
diamong [38]

The supply curve in the question is Qa = 3P2– 12 while the demand curve is Qx = 24 – P2.

<h3>a. How to ascertain the supply curve</h3>

To know the supply curve we have to be able to make a distinction of the direction of the signs used in the functions.

Supply curves are known to be positive because they are an increasing function that is due to prices. For demand function they are negative because they are a decreasing function.

In 3P2 – 12. the coefficient is positive when we take the first derivative. This gives us 6p= +6

For the demand curve, when we do this we would have -2p. that is -2 hence this is the demand curve.

2. Equilibrium.

At equilibrium we have Qa = Qd

hence  3P² – 12p= 24 – P²

From here we are to take like terms

3P² – 12p= 24 – P²

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The solution to the quadratic equation using the quadratic equation calculator is x=4.37228 and x=−1.37228

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Identify and demonstrate processes for making long-term goals and short-term goals
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3 years ago
Marigold Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gea
Luba_88 [7]

Answer:

Break-even point (dollars)= $15,500,000

Explanation:

Giving the following information:

The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Marigold incurs $5735000 in fixed costs.

The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%

<u>To calculate the break-even point in dollars, we need to use the following formula:</u>

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3 years ago
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