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slavikrds [6]
3 years ago
6

Future Value of Multiple Annuities Assume that you contribute $150 per month to a retirement plan for 20 years. Then you are abl

e to increase the contribution to $350 per month for another 20 years. Given an 8 percent interest rate, what is the value of your retirement plan after 40 years
Business
1 answer:
love history [14]3 years ago
5 0

Answer:

$641,455.26

Explanation:

Calculation to determine the value of your retirement plan after 40 years

First step is to determine FV Using financial calculator

N = 40*12 = 480

I = 8%/12 = .6667

PV = 0,

PMT = $150

CPT FV =$523,651.17

N = 20*12 = 240

I = 8%/12 = .6667

PV = 0

PMT = $200 ($350 - $150)

CPT FV =$117,804.08

Now let determine the value of your retirement plan after 40 years

Sum of FV =$523,651.17+$117,804.08

Sum of FV =$641,455.26

Therefore the value of your retirement plan after 40 years will be $641,455.26

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Since $800 has been spent which means Spending up to an additional $1,000 is still reasonable, but a condition in which you know that the deal will definitely go through.

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4 0
3 years ago
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How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?
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It reduces the incentive to work hard and take risks to succeed

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Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continu
dezoksy [38]

Answer:

Attached are the detailed solution tables for

A) complete the activity rate for each activity is a general question covering so solution starts from B

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D) The activity unit costs are not equal across all three products because  of different activity bases such as machine hours, setups, parts and inspection hours that also determines the activity cost

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