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krek1111 [17]
3 years ago
10

You plan to retire in 30 years and you are investing $250 per month in the BMO Large-Cap Growth mutual fund. The fund has an ave

rage annual return of 13.45%. How much will you have at retirement?
Business
1 answer:
mr Goodwill [35]3 years ago
6 0

Accumulated Balance is given by :

A=P\dfrac{(1+i)^n-1}{i}\times (1+i)

Here,

n = time period = 30×12 = 360.

i=\dfrac{13.45}{100}\times \dfrac{1}{12}=0.0112

P = principal price = $250.

Putting all given values in above equation, we get :

A=250\times \dfrac{(1+0.0112)^{360}-1}{0.0112}\times (1+0.0112)\\\\A=\$1221659.48

Hence, this is the required solution.

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Write a team consensus response of 525 to 700 words to include the following: • Provide detailed rational of why goodwill must b
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<u>1)Provide detailed rational of why goodwill must be adjusted for impairment</u>

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Explanation:

<u>1)Provide detailed rational of why goodwill must be adjusted for impairment</u>

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<u />

<u>2) List the tests for impairment. </u>

<u>Impairment test is an accounting procedure carried out to find out if an asset is impaired( i.e. whether the economic benefits that the asset embodies have dropped drastically.)</u>

<u> As per US GAAP, if the carrying value of an asset exceeds the sum of undiscounted expected cash flows of an asset, the asset is impaired</u>

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<u>3)Explain the meaning of a non cash impairment charge</u>

<u>A non-cash charge is a accounting expense that does not involve a cash payment.  </u>

<u>(</u><u>Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows)</u>

5 0
3 years ago
Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, h
allochka39001 [22]

Answer:

Explanation:

A)

CR  Semi annually    7.2/2 3.6%

 

Semi Annual Cash-flow 1000*3.6%  36

 

Rate of Return          15.5 7.75%

 

Present value of bond at 7.75% semmi annually return  

Due to series of c/F apply annuity                                 1-(1+0.0775)^-20

Due to one single  c/F apply compound                        1/(1+0.0775)^20

  No of              Cash flows  Discount facto5 @ 7.75% annuity  Present Value

Cashflows                                    P=R*(1-(1+I )^-n) / i  

   20                      36                  9.966011947                        358.7764301

    1                   1000                  0.222651068                222.6510682

                                                    Present values    581.4274982

B)

CR  Semi annually    9.2/2 4.6%

 

Semi Annual Cash-flow 1000*4.6%  46

 

Rate of Return          15.5 7.75%

 

Present value of bond at 7.75% semmi annually return  

  No of              Cash flows  Discount facto5 @ 7.75% annuity  Present Value

Cashflows                                    P=R*(1-(1+I )^-n) / i  

   

    20               46                 9.966011947                        458.4365495

      1                1000           0.222651068                         222.6510682

                                  Present Value                          681.0876177

C)

There is no transaction cost and CR = IRR thats why the present value of the bond will be equal to face value of bond

CR =  15.5%

IRR = 15.5%

Present value of bond at 7.75% semmi annually return  

  No of              Cash flows  Discount facto5 @ 7.75% annuity  Present Value

Cashflows                                    P=R*(1-(1+I )^-n) / i  

  20                77.5               9.939402948                         770.3037285

   1                       1000                0.22472657                         224.7265701  

                                                                                 995.0302985

Difference is due to decimals

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3 years ago
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2 years ago
Squeaky Clean Car Wash has a goal of increasing its repeat customers by 30% over the next year. It began by looking at ways to s
Alex_Xolod [135]

Answer:

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3 0
2 years ago
Becky had net credit sales in 2020 of $2,000,000. At December 31, 2020, before adjusting entries, the balances in selected accou
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Answer:

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3 0
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