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yan [13]
3 years ago
13

Isaiah is in his 50s and currently does not have a retirement fund. However, he recently read a few articles about the insuffici

ent savings of people in retirement and, as a result, he decides he wants to start now. He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.
Business
1 answer:
leonid [27]3 years ago
4 0

Answer:

Future Value= $158,475.64

Explanation:

Giving the following information:

He saves $500 per month for 15 years and earns 7% by investing in the stock market through an index fund.

I assume we have to determine the value of the investment at the time of retirement.

<u>We need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit= 500

n= 15*12= 180

i= 0.07/12= 0.005833

FV= {500*[(1.005833^180) - 1]} / 0.006833

FV= $158,475.64

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Required Information
il63 [147K]

Answer:

$1140.28

Explanation:

The computation of the net present value of this investment is shown below:-

= Annual Cash flows × Present Value of Annuity Factor (r , n) - Initial Investment

as

Annual cash flows = $8600

Present Value of Annuity Factor (r , n)

r = 10% and n = 4 years

So, the Present Value of Annuity Factor will be the sum of the present value of 4 years at 10%

For Year 1 = 0.9091

For Year 2 = 0.8264

For Year 3 = 0.7513

For Year 4 = 0.6830

Total = 3.1698

Therefore,

Net Present Value = (Cash inflow × Total) -

Initial Investment

= ($8600 × 3.1698) - $26,120  

= $27,260.28 - $26,120

= $1140.28

6 0
3 years ago
Value-added" describes the economic enhancement a company gives its products or services and helps explain why companies are abl
Eduardwww [97]

Answer:

What Is Value-Added?

The term "value-added" describes the economic enhancement a company gives its products or services before offering them to customers. Value-added helps explain why companies are able to sell their goods or services for more than they cost to produce. Adding value to products and services is very important as it provides consumers with an incentive to make purchases, thus increasing a company's revenue and bottom line.

Explanation:

3 0
3 years ago
The Appleton entity established a $200 Petty Cash fund on June 1, 200X. On June 30, 200X the fund had $45 in cash and the follow
Rashid [163]

Answer:

A. DR Petty Cash 200; CR Cash 200

Explanation:

We are asked for the entry on June 1st to stablish the petty cash fund.

The data on June 30th is irrelevant for this question.

We will only work with the information of june 1st

The ptty cash, will be an asset account. To crease an asset account we will debit it.

On credit side, we need to show how is this asset generated. In this case, with another asset, cash. Cash will be credited to show that 200 cash from the main account has been moved into the petty fund

4 0
4 years ago
Mary buys a new toaster for $500. the toaster's label bears a disclaimer stating that the manufacturer is not liable for consequ
Damm [24]

Answer:

The answer is<u> "$500".</u>

Explanation:

The amount of monetary damages Mary can likely recover from the manufacturer of the toaster is $500, because the disclaimer label on the toaster clearly states that, the manufacturer company is not liable for consequential damages. The damage of the electrical wiring in the kitchen refers to consequential damage because it is not the direct result of the damage of toaster but it is due to the spark in the toaster.

5 0
3 years ago
In the presence of producer producer rivalry the price will tend to be ___.
vodomira [7]

Answer:

The correct answer is letter "A": be driven to a lower price.

Explanation:

Typically, when there is a producer to producer competition, the competing companies tend to <em>lower </em>their product prices. This happens because of the belief consumers are mainly price driven at the moment of discriminating in choosing to buy one good over another. Though, it allows consumers to at least have a couple of sources from where to choose at a fair price.

6 0
3 years ago
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