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BigorU [14]
3 years ago
9

Gilbert has just started saving for a new horse. He plans to make savings payments of $700 each year for the next 5 years and ha

s just made his payment. How much will he have saved at the end of year 5 if the interest rate is 4.5%
Business
1 answer:
steposvetlana [31]3 years ago
6 0

Answer:

the value that should be saved is $4,001.82

Explanation:

The computation of the amount that should be saved at the year end of 5 years in that case where the rate of interest is 4.5% is shown below:

Value in 5 years is

= (1 + rate) × Annual Payment × [{(1 + rate)number of years - 1} ÷ rate]

= (1 + 0.045) × $700 × [{(1 + 0.045)^5 - 1} ÷ 0.045]

= $731.50 × [0.2462 ÷ 0.045]

= $731.50 *×5.4707

= $4,001.82

Hence, the value that should be saved is $4,001.82

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A client, age 67, owns his own home free and clear. The customer has an annual income of $25,000, mainly from social security an
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Answer:

The best recommendation to be made to this client is to do nothing.

Explanation:

Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.  

From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.

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3 years ago
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Answer:

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Explanation:

Giving the following information:

For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.

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Quarter 2:

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