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DerKrebs [107]
3 years ago
5

An individual who makes $32,000 per year anticipates retiring in 30 years. If their salary is increased by $600 each year and th

ey deposit 10% of their yearly salary into a fund that earns 7% interest, what is the future worth at retirement?
Business
1 answer:
Zepler [3.9K]3 years ago
7 0

Answer:

$366,287.15

Explanation:

Annual salary = $32000  

No. of years (n) = 30 years

Increment in salary = $600

Deposit rate = 10%

Interest rate (r) = 7% or 0.07

Growth rate (g) = Increment in salary \div annual salary

Growth rate = $600 \ $32000

Growth rate = 0.01875

First deposit = $32000 x 10% = $3200

Future worth = [First deposit \ (r - g)] x [(1 + r)n - (1 + g)n]

Future worth = [$3200 \ (0.07 - 0.01875)] x [(1 + 0.07)30 - (1 + 0.01875)30]

Future worth = [$3200 \ 0.05125] x [(1.07)30 - (1.01875)30]

Future worth = $62439.0243902 x [7.6122550423 - 1.7459373366]

Future worth = $62439.0243902 x 5.8663177057

Future worth = $366287.15

Hence, the future worth at retirement is $366,287.15

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Answer:

The revenue recognition principle

Explanation:

The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and  not when cash is received for the service rendered

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Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common st
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Answer: See explanation

Explanation:

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2 years ago
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Answer:

True or False

True - explanation below

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