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drek231 [11]
3 years ago
10

Michael earns $3,950 every month after taxes and deductions for social security and insurance. He puts $900 a month into savings

. He wants to buy a $30,000 boat. He only has $11,000 saved up for this major purchase. He is willing to postpone the purchase for 2 years (24 months) in order to reach a savings goal of $30,000. Will Michael be able to afford the boat in two years if he continues to save $900 a month?
Business
1 answer:
krek1111 [17]3 years ago
6 0

Answer:

Yes, Michael will afford the boat

Explanation:

So far Michael has saved $11,000.

The boats costs $30,000 to purchase.

Michael needs to raise $19,000  ($30,000 - $11,000) in two years to buy the boat.

Michael saves $900 per month. In 24 months he will have saved

=$900 x 24

=$21,600

Michael requires $19,000 but will have save $21,600 in two years. Therefore, he should be able to purchase the boat.

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Routine problem solving is a form of decision making in purchase where consumers purchase products they are familiar with, without paying much considerations to other options available.

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If a marketing manager queries a marketing information system to determine the effect of three different levels of price for a n
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sensitivity analysis

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3 years ago
When the federal reserve decreases the federal funds target rate, it means that
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That it increases the money supply and the inflation is higher. More money can be loaned out by the bank.
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3 years ago
ou plan to deposit $5,900 at the end of each of the next 20 years into an account paying 10.8 percent interest. a. How much will
Furkat [3]

Answer:

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Explanation:

Calculation to determine How much will you have in your account if you make deposits for 20 years

Using this formula

Future value = Annuity × {( 1 + interest rate) ^ time period - 1} ÷ interest rate

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6 0
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