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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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Bond ratings are significantly based on all of the following EXCEPT:_______.
KiRa [710]

Answer:

c) The current ratio

Explanation:

The current ratio is an example of a liquidity ratio.

Liquidity ratios measure a company's ability to meet its short term obligations.

Current ratio = curernt assets / current liabilities

Return on assets is a profitability ratio. It measures return on investment

The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments

5 0
2 years ago
According to Goldratt: Two activities scheduled to be carried out sequentially and using the same scarce resource benefit from h
zimovet [89]

Answer:

Two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

Explanation:

An Israeli physicist named, Eliyahu M. Goldratt developed the Critical Chain Project Management (CCPM) and introduced it in his book "Critical Chain" in 1997.

The CCPM is a project management methodology used by managers to better manage a project. The CCPM ensures that the project plan is feasible and immune from any uncertainty or statistical fluctuations.

In the CCPM activity network, there are no milestones and all non-critical activities are performed as late as possible.

CCPM adopts the use of drum buffers, so as to ensure extra safety is applied to a project immediately before using constrained resource.

According to Goldratt, two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

6 0
2 years ago
A company received 500 applications for a specific position.30 were given an assignment test. Only 15 were invited to an intervi
morpeh [17]
I think c might be wrong tho
4 0
3 years ago
When an individual withdraws funds from a checking account the: Select one: a. bank's balance sheet shrinks but the size of the
OleMash [197]

Answer:

c. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected

Explanation:

In the case when an individual withdraws the amount from the checking account so the balance sheet of the bank should shrink but overall the size of the balance sheet of fed is not impacted

So according to the given situation, the option c is correct

Hence, the same should be considered

4 0
2 years ago
A 30-second radio spot for Louies sporting goods cost $650.If the spot is run three times a day for one week, how much will Loui
lisabon 2012 [21]

Answer:

The total amount that Louies spends on advertising=$13,650

Explanation:

To calculate the total amount Louies sporting goods spends on advertising, we express the total expenditure as follows;

Total expenditure=Cost per day×number of days

Cost per day=cost per spot×number of spots in a day

Cost per day=(650×3)=$1,950

Number of days in a week=7 days

replacing;

Total expenditure=Cost per day×number of days

Total expenditure=(1,950×7)

Total expenditure=$13,650

The total amount that Louies spends on advertising=$13,650

5 0
2 years ago
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