1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skelet666 [1.2K]
3 years ago
14

Jane is a very intelligent graduate of FIN 3601. As such, she knows she should will start contributing into her company's retire

ment plan. She decides to allocate $250 at the end of each month into her 401(k). However, her company offers a fairly generous matching program. For every dollar that Jane saves in her 401(k), her firm will add $0.50 to her account. If she is employed by this firm for 30 years and earns an average of 10.50% on her retirement savings per year, how much will Jane have in her retirement account 30 years from now? Report your answer rounded to two decimal places.
Business
1 answer:
labwork [276]3 years ago
5 0

Answer:

The amount that Jane will have in her retirement account 30 years from now is $943,650.37.

Explanation:

Jane’s monthly savings = $250

Amount added monthly by Jane’s firm = Jane’s monthly savings * Amount added by Jane’s firm for every dollar = $250 * $0.50 = $125

Total monthly savings to Jane’s 401(k) = Jane’s monthly savings + Amount added monthly by Jane’s firm = $250 + 125 = $375

Since Jane decides to allocate $250 at the end of each month into her 401(k), this implies the relevant formula to use to calculate the amount Jane will have in her retirement account 30 years from now is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the amount that Jane will have in her retirement account 30 years from now = ?

M = Total monthly savings to Jane’s 401(k) = $375

r = Average monthly interest rate = Average annual interest rate / 12 = 10.50% / 12 = 0.1050 / 12 = 0.00875

n = number of months = number of years * number of months in a year = 30 * 12 = 360

Substituting the values into equation (1), we have:

FV = $375 * (((1 +0.00875r)^360 - 1) / 0.00875) = $375 * 2,516.40 = $943,650.37

Therefore, the amount that Jane will have in her retirement account 30 years from now is $943,650.37.

You might be interested in
Tonto Company purchased property for $125,000. The property included a building, equipment and land. The building was appraised
velikii [3]

Answer:

The cost allocated to the building is $ 62,068.97  

Explanation:

The total appraised cost for the components of the property purchased=$72,000+$50,000+$23,000=$ 145,000.00  

The cost allocated to the building in the accounting records is the cost of the property multiplied by the building appraised value of $72,000 while dividing by the total of the  appraised value of $145,000

cost allocated to building=$125,000*$72,000/$145,000=$ 62,068.97  

3 0
2 years ago
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending i
Lyrx [107]

Answer:

a. An additional layer of $12,760 is added to the 12/31/2021 balance.

Explanation:

The computation of the inventory balance is given below:

2021 Base year cost is

=  $131,040 ÷ 1.05

= $124,800

Additional layer is

= $124,800 - $101,600

= $23,200

2022 Base year cost is

= $150,040 ÷ 1.10

= $136,400

Additional layer is

= ($136,400 - $124,800 ) × 1.10

= $11,600  1.10

= $12,760

Therefore the first option is correct

3 0
3 years ago
Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch pai
Yuki888 [10]

Answer:

$13,000

Explanation:

The computation of the december 31 liability for the warranty is shown below:

Given that

Warranty expense = 5% of sales

Warranty payable = $13,000

Paid amount = $5,000

Sales = $120,000

based on the above information

The warranty liability as on Dec 31 would be equivalent to the warranty payable i.e. $13,000

The same is to be considered

3 0
2 years ago
The raw materials or reactants of the photosynthetic process include
Firdavs [7]
<h3><u>Full Question:</u></h3>

The raw materials or reactants of the photosynthetic process include

A. glucose and oxygen.

B. carbon dioxide and glucose.

C. carbon dioxide and water.

D. carbon dioxide and oxygen.

The raw materials or reactants of the photosynthetic process include carbon dioxide and water.

<h3><u>Explanation:</u></h3>

The process by which the light energy obtained from the sun is converted into chemical energy is photosynthesis. This process takes place in all plants having chloroplast pigments. The raw materials of this process is water and carbon dioxide.  

In the photosynthesis process water, carbon dioxide and minerals will be converted into oxygen and some organic compounds that are filled with energy. This acts as an energy source for the plants to survive. This process will not be possible in the absence of the chloroplast pigment.

3 0
2 years ago
What was the name given to the trade system where finished manufactured goods were sent to africa in exchange for slaves who wer
Alex Ar [27]
A.) The Triangular Trade


7 0
3 years ago
Other questions:
  • The step in designing a customer value dash–driven marketing strategy in which a company divides a market into distinct groups o
    14·1 answer
  • School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others
    6·2 answers
  • car wash services 200 customers in an hour on a lovely Saturday afternoon. The car wash employs 5 washers at​ $6 per hour and us
    14·1 answer
  • Seadrill Engineering sold software to oil-drilling firms. In addition to providing the software, the company also provides consu
    7·1 answer
  • The first physical form or service description of a new product, still in rough form, having the same properties as a new produc
    14·2 answers
  • Write a critical evaluation of your learning outcome. In your response, consider: 1. Consider the content of this class as they
    7·1 answer
  • Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the f
    5·1 answer
  • For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acqu
    14·1 answer
  • 1.<br>What is business? Explain its characteristics.​
    5·1 answer
  • Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungste
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!