1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nika2105 [10]
3 years ago
6

A couple thinking about retirement decide to put aside $2,100 each year in a savings plan that earns 7% interest. In 10 years th

ey will receive a gift of $29,000 that also can be invested. a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Marina86 [1]3 years ago
8 0

Answer:

310,588.5

Explanation:

As is not said we can assume the 2,100 each year to be paid at the end of the year, and the 7% to be used as a compunded anually rate. So let´s first think just about the 2,100, as they are regulary payments, they can be seen as an anuity inmediate, the formula is as follows:

s_{n}=p*\frac{(1+i)^{n}-1 }{i}

where sn is the future value of the regular payments, i is the interest rate and n is the number of payments and p is the amount of regular payment so in this particular case we have:

s_{n}=2,100*\frac{(1+0.07)^{30}-1 }{0.07}

s_{n}==198,367.65

So now let´s think on the gift of 29,000 as it is paid on 10 years, there will remain 20 years with an investment rate of 7% compounded anually. so there we have the classic formula of future value

FV=VP*(1+i)^{n}

where FV is the future value, PV is the present value, i is the interest rate per period, and n is the number of periods. Again in this particular case we have:

FV=29,000*(1+0.07)^{20}

FV=112,220.85

so the total amont will be:

total=198,367.65+112,220.85

total=310,588.5

You might be interested in
A candy company called Hearts Aflame Inc. forms an agreement with
denis-greek [22]

Answer:

The correct option is (B)

Explanation:

A strategic equity alliance is made when one organization buys a specific value level of the other organization. When Candy bought 30% of the value in Dreamcatcher Inc., an equity alliance was formed. In this type of alliance, one company buys ownership of another company, but that other company does not pool in the resources and cannot claim ownership. This type of alliance is commonly done to improve the business cycle and slow growth.

3 0
3 years ago
Serena the Chief Financial Officer has a decision to make. She has to rank several alternatives for purchasing a new piece of eq
emmainna [20.7K]

Answer: Capital rationing

Explanation:

Capital Rationing occurs when a firm has to ration capital because there's no enough fund to invest in all the attractive projects.

Capital rationing is used by companies in order to limit the number of projects which they'll invest in at a time.

Since Serena has to rank several alternatives for purchasing a new piece of equipment based on the fact that there is constraint with regards to the availability of funds, this is capital rationing.

3 0
2 years ago
You are a loan officer for National Bank. You have a loan application submitted by a company for $50,000. This company just got
MArishka [77]

Answer:

5678

Explanation:

I think thats right

5 0
2 years ago
The revenue recognition principle guides accountants in​ ________.
Goryan [66]

The revenue recognition principle guides accountants in​ Answer: D determine when to record revenues. The revenue recognition principle lets accountants know when they need to record revenues and at what amount to record. The revenue recognition principle states not to record revenue until it has been earned in full.

3 0
3 years ago
Johanna has been asked by the department manager to prepare a SWOT analysis on two of the company's products. In which step of t
Stella [2.4K]

Answer:

The options for this question are the following:

A. current reality assessment

B. establish the mission

C. prepare values statement

D. maintain strategic control

The correct answer is A. current reality assessment .

Explanation:

The current evaluation has been designed to evaluate competencies. In the new trends, two support centers can be found: one, focused on the critical review of education sciences in particular and social sciences in general and the other, more pragmatic, derived from the new challenges introduced by the progress dizzying of science and technology.

The traditional evaluation procedure responds to content-based education. It is based on forms of institutionalized obedience and tends to lead the educational process to the school routine and the use of coercive measures, thus impeding the search for critical and creative thinking.

3 0
3 years ago
Other questions:
  • The median yearly counts of alligator attacks must be
    7·1 answer
  • Smith & Sons, Inc., is authorized to issue one million shares of $1 par value common stock. The company actually sells 500,0
    13·1 answer
  • Which of the following pairs of accounts could not appear in the same adjusting entry? a. Interest Income and Interest Expense b
    5·1 answer
  • The costs of international logistics are higher than the costs of domestic logistics. They are estimated as ____________________
    13·1 answer
  • If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by
    10·1 answer
  • ​The production team of a company that manufactures cricket balls has determined the quantity of leather, threads, labor, and el
    8·1 answer
  • Net exports might be a negative amount if Americans
    14·1 answer
  • job cost journal entries prior to the beginning of 2016, lowe company estimated that it would incur $264,000 of manufacturing ov
    8·1 answer
  • A net worth statement, insurance plan, and a budget are all part of a?
    9·1 answer
  • 1. The ABC Company is producing an item at unit cost of birr 4.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!