Answer:The answer is $17,387.67
Explanation:
Let Principal = P, Rate = R% per annum, Time = n years
Amount = P ( 1 + R/100)∧n
P = $800, R = 7.4%, n = 24
A = 800 ( 1 + 7.4/100)∧24
A = 800 ( 1 + 0.074)∧24
A = 800 ( 1 .074)∧24
A = 800 (5.547569512)
A = 800× 5.5475569512
A = $4,438.05
Deposit made at 39th birthday
P = $800, R = 7.4%, n = 39
A = 800 ( 1 + 7.4/100)∧39
A = 800 (1 + 0.074)∧39
A = 800 (1.074)∧39
A = 800 (16.187022604)
A = 800× 16.187022604
A = $12,949.62
How much is in the IRA when Bob retires will be
$4,438.05 + 12,949.62
= $17,387.67
Answer:
The money supply should be set at 800
Explanation:
In this question, we are asked to calculate the value at which Fed should set the money supply at after fixing the interest rate at 7 percent.
We proceed as follows;
Let the new money supply be M.
To fix the interest rate at 7%, r= 7 and P = 2
(M/P)d = 2,200 - 200r
= 2200 - 200(7)
=2200-1400
= 800
M = 800
Answer:
C
Explanation:
will increasethr firm's capital structure weight of dept.
