Answer:
spacing problems and paper quality problems
The retirement account value in 32 years is calculated using the FV function in excel as in =FV(rate,nper,pmt) where
rate (monthly interest rate)= 10.7% = 0.107 = 0.107/12 (Monthly)
nper (number of periods)= 32*12 = 384 months
pmt (Monthly deposit) = 450
The retirement account's value in 32 years =FV(0.107/12,384,450) = 1,475,143.62
Your retirement account will be in 32 years =$1,475,143.62 (Rounded to 2 decimals)
C. Balance transfer fee
Hope this helps! :)
Answer:
1. In the scenario where Interest rate is 6% and inflation rate is 4%; annual real return on the investment will be $0.5 or 0.5%;
2. In the scenario where Interest rate is 12% and inflation rate is 10%; annual real return on the investment will be -1 or -1%
Explanation:
1. In the scenario where Interest rate is 6% and inflation rate is 4%:
- Your before-tax interest income will be: 100 x 6% = $6
- Your after-tax interest income will be: 6 x (1-25%) = $4.5
- Your inflation cost will be: 100 x 4% = $4
- Your net annual real return will be: $4.5 - $4 = $0.5 or 0.5/100 = 0.5%
2. In the scenario where Interest rate is 12% and inflation rate is 10%; annual real return on the investment:
- Your before-tax interest income will be: 100 x 12% = $12
- Your after-tax interest income will be: 12 x (1-25%) = $9
- Your inflation cost will be: 100 x 10% = $10
- Your net annual real return will be: $9 - $10 = -$1 or -1/100 = -1%