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SSSSS [86.1K]
3 years ago
7

Assume that you are 25 years old today, and that you are planning on retirement at age 65. You expect your salary to be $55,000

one year from now and you also expect your salary to increase at a rate of 3% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 26th birthday and will be 12% of this year's salary. Likewise, you expect to deposit 12% of your salary each year until you reach age 65. Assume that the rate of interest is 5%.
The future value (FV) (at age 65) of your retirement savings is closest to:________
a. $1,091,733.20
b. $1,246,723.80
c. $988,452.90
d. $1,225,821.20
Business
1 answer:
pickupchik [31]3 years ago
7 0

Answer:

FV= $1,246,723.8

Explanation:

<u>To calculate the future value of this growing annuity, we need to use the following formula:</u>

FV= A*{[(1+i)^n - (1+g)^n] / (i-g)}

A= annual deposit= 55,000*0.12= 6,600

i= 0.05

g=0.03

n= 40 years

FV= 6,600* {[(1.05^40) - (1.03^40)] / (0.05 - 0.03)}

FV= $1,246,723.8

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Answer:

c. can improve its allocation by producing more of one good and less of the other.

Explanation:

Production possibility curve shows all the combinations not two products that can be produced by an economy with a given level of resources. When more of one good is produced, less of the other is produced.

When the marginal benefit of the goods are not equal to the marginal cost, the economy can find a balance where the benefits of producing bother goods exceeds their cost.

This can be done by producing more of one good and less of the other.

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4 years ago
After a recent spike in violent crime, the local police department wants to spend $550,000 on a new crime fighting initiative. I
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Answer:

c.

6.1 percentage points.

Explanation:

Ratio shows proportion of a number to other number or sum of all the numbers. Percentage is a ratio which is expressed as fraction of 100.

Human Life Worth = $9 million = $9,000,000

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Take ratio of spending by the worth of human life

Ratio = Spending / Worth = $550,000 / $9,000,000 = 0.061 = 6.1%

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4 0
3 years ago
Classify each item as an asset, liability, common stock, revenue, or expense. (a) Issuance of ownership shares. select the corre
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Answer:

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Which statement below best captures the overall point and focus of the New York Times article, Document 3?
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Answer:

Correct Answer:

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A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.

The definition of a customer is a person who purchases products or services at a store, restaurant, or other retail establishment. An example of a customer is someone who goes to an electronics store and buys a television. (informal) A person, especially a person, who interacts with others in some way.

In sales, commerce, and business, customers (sometimes called customers, purchasers, or purchasers) receive goods, services, products, or ideas obtained from sellers, vendors, or suppliers through financial transactions. is a person. Transaction or exchange for money or other valuable consideration

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