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zhenek [66]
2 years ago
5

% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires

Business
1 answer:
ira [324]2 years ago
6 0

Answer:

The worth of the IRA when Bob retires at 65 is $190,706.57.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Bob makes his first $1,200 deposit into an IRA earning 6.5% compounded annually on the day he turns 24 and his last $1,200 deposit on the day he turns 44 (21 equal deposits in all.) With no additional deposits, the money in the IRA continues to earn 6.5% interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires?

The explanation of the answer is now given as follows:

Step 1: Calculation of the future value of the IRA when Bob turns 44

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV44 = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV44 = Future value of the IRA when Bob turns 44 = ?

M = Annuity payment = $1,200

r = annual interest rate = 6.5%, or 0.065

n = number of years = 44 - 24 + 1 = 21

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

FV44 = $1,200 * (((1 + 0.065)^21 - 1) / 0.065)

FV44 = $1,200 * 42.3489537330236

FV44 = $50,818.74

Step 1: Calculation of the future value of IRA when Bob retires at 65

This can be calculated using the simple future value formula as follows:

FV65 = FV44 * (1 + r)^n ....................................... (1)

Where;

FV65 = Future value of IRA when Bob retires at 65 or the worth of the IRA when Bob retires at 65 = ?

FV44 = Future value of the IRA when Bob turns 44 = $50,818.74

r = annual interest rate = 6.5%, or 0.065

n = number of years = 65 - 44 = 21

Substituting the values into equation (2), we have:

FV65 = $50,818.74 * (1 + 0.065)^21

FV65 = $50,818.74 * 3.75268199264653

FV65 = $190,706.57

Therefore, the worth of the IRA when Bob retires at 65 is $190,706.57.

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Answer:

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the total factory overhead costs would be,

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

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Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plot
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Answer:

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Explanation:

Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S. This is an example of how <u>political and legal</u> forces affect the marketing environment.

Business organisations operate within a political system and legal framework. Political factors determine economic policies like taxation and regulations. Business decisions are subject to, and are affected by political and legal factors.

Governments formulate a series of legislations to monitor business activities and protect consumer and social interests.

Such laws would either create new opportunities or threats for the businesses in existence.

In the Scenario above Hoffman-LaRoche and BASF AG must have violated regulations that protect consumer interests put in place by the government by wanting consumers to pay too high for such necessities as vitamins and huge fines have been imposed on them.

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The use of simulation to create an aggregate plan:
12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

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3 years ago
during its first year of operations, silverman company paid $11,440 for direct materials and $9,900 for production workers' wage
algol13

The amount of finished goods inventory on the balance sheet at year-end is $11,880

What is the cost of producing 5,600 units?

The cost of producing the finished goods of 5,600 units is the sum of direct materials, workers' wages and lease payments and utilities on the production facilities

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Find out more about inventory valuation on:brainly.com/question/17230868

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