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rosijanka [135]
3 years ago
14

Suppose you start saving for retirement when you are 45 years old. You invest $5,000 the first year and increase this amount by

3% each year to match inflation for a total of 20 years. The interest rate is 10% per year. How much money will you have saved when you are 65 years old
Business
1 answer:
Lady bird [3.3K]3 years ago
7 0

Answer:

FV= $404,734.15

Explanation:

Giving the following information:

Annual investment (A)= $5,000

Increase rate= 3%

Interest rate= 10%

Number of periods= 20 years

To simplify calculations, we will sum up the increased rate to the interest rate. <u>The effect on the investment of both rates is the same.</u>

Real interest rate= 0.03 + 0.1= 0.13

<u>Now, to determine the nominal value of the account in 20 years, we need to use the following formula:</u>

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

A= annual deposit

FV= {5,000*[(1.13^20) - 1]} / 0.13

FV= $404,734.15

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Mariposa Corporation is considering purchasing equipment for $200,000. Mariposa expects this equipment will last for 20 years an
Westkost [7]

Answer:

$24,220

Explanation:

After tax cashflow formula as follows;

AT cashflow = Income before taxes(1- tax) + annual depreciation amount

Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.

Annual depreciation amount = $200,000/ 20 = $10,000

AT cashflow = 18,000*(1-0.21) + 10,000

= 14,220 + 10,000

= 24,220

Therefore, Mariposa’s expected cash flow after taxes per year is $24,220

6 0
3 years ago
Not heading back to school due to high
WITCHER [35]

Answer:

The answer is D, hope this helped!

Explanation:

The answer is D because its a realistic thing to have bills and sometimes you have to take risks or youll have nothing. <3

3 0
3 years ago
From the perspective of employee, the effective channeling of work-related infomation and concerns
tino4ka555 [31]
From the perspective of an employee, the effective channeling of work-related information and concerns A. <span>should be conveyed directly to the manager in charge of function involved</span>
3 0
4 years ago
An organization has considered its sales channels, its customer service requirements, and its operating model. Also it has analy
yan [13]

According to Michael Porter :

  • A sales channel is a strategy employed by a producer to market goods or services to final consumers. Depending on how things are delivered to customers, sales channels can be direct or indirect. With the aim of closing the sale, these channels can be platforms (online or offline), people, or partners.
  • A further perspective is that a sales channel is a source of income for a manufacturer that facilitates the sale of goods or services.
  • A business can sell its goods and services through direct channels like these.
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<h2>What are the principles of a sales organization?</h2>

A sales organization is built on a few key organizational tenets that are closely related to the tenets of the entire business. These principles act like software, directing and regulating the organization's efficient operation. Principles assist the organization in pursuing its objectives and investigating market prospects.

<h3>What standards should a successful sales organization meet?</h3>

The management should be aware of the requirements for creating a successful sales organization before one is created. These are listed below:

1. The functions of the sales department should be clearly defined by the sales organization, and the activities of the salespeople and their superiors should be planned and coordinated in a logical manner.

Learn more about sales organization at :

brainly.com/question/12978625?referrer=searchResults

#SPJ4

3 0
2 years ago
PLEASE ANSWER SOON!!!!
Gwar [14]
Currency I think.  It's given in exchange for an item.
4 0
3 years ago
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