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3 years ago

Explain why making the minimum payment leads to paying the most interest.

1 answer:

6 0

since the price is so low the interest goes up because you paid just a little and so they want to get more off of that purchase.

Explanation:

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Your grandfather put some money in an account for you on the day you were born. You are now years old and are allowed to withdra

sergij07 [2.7K]

Answer:

Missing word <em>"You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3996 in it and pays an 8% interest rate."</em>

a. At 18 years, future value of current amount (compounded for another 7 years at 8%)

= $3,996 * (1.08)^7

= $3,996 * 1.7138

= $6,848.34

b. At age 65, future value of this amount (compounded for another 40 years at 8%)

= $6,848.44 * (1.08)^40

= $6,848.44 * 21.7245

= $148,779.93

c. Future Value = Present Value * (1 + Interest Rate)^n

So, let initial the money deposited be represented by Y

=> $3,996 = Y * (1.08)^18

=> $3,996 = Y * 3.996

Y = $3,996 / 3.996

Y = $1,000

8 0

2 years ago

The "real burden" of the debt is directly related to

goldenfox [79]

Hi.

I think the answer is the idea of opportunity cost.

~

5 0

3 years ago

Diversity of the planning group: A. Requires the group leader to control of decision making and action planning. B. Makes it dif

lana66690 [7]

Option C. Diversity of the planning group: Often results in more comprehensive and creative planning.

<h3>What is diversity?</h3>

This is the term that is used to refer to a group that is made up of people that are from different cultures, areas and fields.

In such a group there is the tendency for creativity if they are able to work together and share ideas.

Read more on diversity here:

brainly.com/question/7170490

#SPJ1

8 0

1 year ago

Calculate and Use Overhead Rate Chipman Corporation expects to incur $300,000 of factory overhead and $500,000 of general and ad

tatyana61 [14]

Answer:

$1,500

Explanation:

Given that;

Factory overhead = $300,000

General and administrative costs= $500,000

Direct labor cost = $500,000

Total direct labor hours = $500,000 /$25 per hour

= 20,000 direct labor hours

Factory overheads per direct labor hours = $300,000 / 20,000

= $15 per direct labor hour

Therefore, Overheads applied to job will be;

= 100 direct labor hours × $15 per direct labor hour

= $1,500

Overhead applied is $1,500

7 0

3 years ago

Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2019 joint income tax return of $45

olchik [2.2K]

Answer: $0

Explanation:

In the United States tax law, there exists 2 principal types of IRAs. They include: the traditional IRA and the Roth IRA.

Annual contributions are deductible when made to a traditional IRA, and in which case tax is paid on the retirement distributions.

But annual contributions made to a Roth IRA aren't deductible, and in which case taxes are not paid on retirement distributions.

Martha’s maximum deductible IRA contribution is $0 because taxes are not paid in the current year on earnings in both types of IRAs.

5 0

3 years ago