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Andrei [34K]
2 years ago
9

3. Assume you can earn 9% per year on your investments. a. If you invest $100,000 for retirement at age 30, how much will you ha

ve 35 years later for retirement? (Answer: $2,041,397) b. If you wait until age 40 to invest the $100,000, how much will you have 25 years later for retirement? (Answer: $862,308) c. Why is the difference so large?
Business
1 answer:
Crank2 years ago
6 0

Answer:

Results are below.

Explanation:

Giving the following information:

Interest rate= 9%

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

FV= PV*(1+i)^n

a)

PV= $100,000

n= 35

i= 0.09

FV= 100,000*(1.09^35)

FV= $2,041,396.79

b)

PV= $100,000

n= 25

i= 0.09

FV= 100,000*(1.09^25)

FV= $862,308.07

There is a big difference between investing at 30 than at 40. It is due to the compounding interest of the first 10 years.

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The employers look for potential employees that they think would be a good fit and have good qualities.
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Because services are __________, it is often difficult for marketers to convey the benefits to consumers.
muminat

Because the services are intangible, it is often difficult for the marketers to convey benefits to consumers.

<h3>Who is a marketer?</h3>

A marketer is someone who advertises the goods and services of an organization. They identify the tactics that can increase revenue and sales while making sure that these tactics are in line with both customer and market need. Now that we are aware of what a marketer is, let's examine their function. Let's first examine the function that a marketer does before delving into the importance of marketing for firms. The financial success of any firm can be determined by the marketer's ability to sell. They make sure that the goods and services are promoted effectively enough to sustain demand. Long-term brand equity and improved consumer experiences are enhanced by imaginative and creative marketers.

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5 0
1 year ago
In most cases, what is the most expensive promotion tool?
REY [17]

Answer: (B) Personal selling

Explanation:

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The personal selling is also known as the interaction form of selling the products to the user.

The personal selling is one of the most expensive promotion tool as it is hardly used for advertising the products. It mainly involve spreading the information regarding the specific organization products and the services.

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6 0
3 years ago
Fred's Paper Shop frequently buys paper from Online Office Supplies, Inc. Online Office Supplies and Fred's Paper Shop decide to
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Answer:

likelihood that disputes will arise under their contract is reduced.

Explanation:

One of the advantages of entering into a partnering agreement is that the likelihood that disputes will arise under their contract is reduced. This is mainly due to the fact that the agreed upon contract contains all the rules and regulations that both entities have agreed to follow. Therefore if there is any difference in decision the contract can be brought up and must be followed.

3 0
3 years ago
Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capaci
mr_godi [17]

Answer:

The president of Riggs has missed something.

She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.

Explanation:

<u>Cost of Manufacturing the Sails:</u>

Direct materials        $93

Direct Labor              $83

Total                         $173

The president of Riggs has included the $90 overhead  based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.

Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.

Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity

<u>Conclusion:</u>

The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.

I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.

5 0
3 years ago
Read 2 more answers
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