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Diano4ka-milaya [45]
3 years ago
15

anice plans to save $75 a month, starting today, for 20 years. Kate plans to save $80 a month for 20 years, starting one month f

rom today. Both Janice and Kate expect to earn an average return of 5.5 percent on their savings. At the end of the 20 years, how much more Kate willhave than Janice
Business
1 answer:
miskamm [114]3 years ago
4 0

Answer:

Kate will have $2,178 more than Janice

Explanation:

The constant saving of $75 and $80 each month is an annuity payment. The Balance at the end of 20 years of a constant payment is the future value of annuity.

n = number of months = 20 x 12 = 240 months

r = Average rate = 5.5% per year = 5.5% / 12 = 0.46%

Future value of annuity = FV = P x ( [ 1 + r ]^n - 1 ) / r

Janice

Saving per month = $75

FV = $75 x ( [ 1 + 5.5%/12 ]^240 - 1 ) / 5.5%/12 = $32,672

Kate

Saving per month = $80

FV = $80 x ( [ 1 + 5.5%/12 ]^240 - 1 ) / 5.5%/12 = 34,850.2

Difference  = $34850.2 - 32,672 = $2,178

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A failure of the financial sector.

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There are __ in every economy that are used to produce the goods and services that people want and need
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When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $
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c. discretionary income.

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e. Earned income after taxes: The income which is earned after deducting the tax expenses is called earned income after taxes.

In the given situation, the most appropriate option is C.

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3 years ago
the us government gave land to the railroads to help them expand. what impact did these land grants have on industries in the we
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Due to the grants' encouragement of settling and the creation of new industrial prospects, the West's industries were able to expand.

<h3>What to you understand by Industries? </h3>

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6 0
1 year ago
Fremont Enterprises has an expected return of 12 % and Laurelhurst News has an expected return of 24 %. If you put 56 % of your
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Answer:

     = 18.7%

Explanation:

<em>A portfolio is a collection of assets/ investment. The return on a portfolio is the weighted average of all the return of the individual assets weighted according to the percentage of total funds allocated to each assets.</em>

Expected return on portfolio:

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