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oksian1 [2.3K]
2 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]2 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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Answer:

Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.

Explanation:

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What is the relationship between a non-callable, option-free fixed rate bond's price and its yield?
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Forward Co. discarded a machine that cost $5,000 and was fully depreciated. The entry to record this transaction would include a
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Based on the fact that Forward Co. discarded a machine with cost $5,000, the entry to record this transaction in the books would include a credit to Machinery.

<h3>How do you dispose of fixed assets?</h3>

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This would then show the company if they made a profit or a loss when they sold the fixed asset with a profit being made when the selling price is higher than the net book value.

Regardless of the price the fixed asset is sold at, the company would record a credit to the fixed asset (machinery) account to show that the fixed asset account is decreasing.

In conclusion, there will be a credit to machinery.

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Answer:

Explained below

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