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
ddd [48]
3 years ago
15

Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $

300 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years
Business
1 answer:
sveta [45]3 years ago
6 0

Answer:

Total FV= $1,220,441.33

Explanation:

<u>First, we need to calculate the value of the $200 for 20 years. To calculate the future value, we need to use the following formula:</u>

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

A= monthly deposit

A= 200

n= 20*12= 240

Intertest rate= 0.07/12= 0.005833

FV= {200*[(1.005833^240) - 1]} / 0.005833

FV= $104,180.27

<u>Now, the value of the $300 for 30 years. At the same time, the future amount of the first investment. Each one with its separate formula.  </u>

$300 monthly investment:

n= 300*12= 360

FV= {300*[(1.005833^360) - 1]} / 0.005833

FV= $365,962.41

$104,180.27 investment:

FV= PV*(1+i)^n

FV= 104,180.27*(1.005833^360)

FV= $854,478,92

<u>Finally, the total FV:</u>

Total FV= 854,478.92 + 365,962.41

Total FV= $1,220,441.33

You might be interested in
Jane's Donut Co. borrowed $198,000 on January 1, 2018, and signed a two-year note bearing interest at 14%. Interest is payable i
Virty [35]

Answer:

$27,720

Explanation:

The computation of the interest expense

= Principal amount × rate of interest × number of months ÷ (total number of months in a year)  

= $198,000 × 14% × (12 months ÷ 12 months)

= $27,720

Basically we applied the simple interest formula to determine the interest expense and the borrowed amount is taken on January 1, 2018 and the interest expense should be reported on December 31, 2018 that comprises of 12 months

7 0
3 years ago
Rent and maintenance expenses would most likely be allocated based on: Select one: a. Sales volume by department. b. Square feet
erik [133]

Answer: B. Square feet of floor space occupied.

Explanation: Rent is usually charged and allotted based on the size of the space occupied,a bigger work space will be enough to occupy more raw materials, machines,offices,finished goods and other things.

The maintenance cost of using a bigger space will most likely be higher than a smaller work space, bigger work space requires more lightening,more ventilation etc which will definitely increase the amount allotted or spent in servicing and carrying our maintenance on this electrical items.

3 0
3 years ago
"Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Co
adell [148]

Answer:

B) $ 4.25

Explanation:

From the data provided in the question, we need to classify the items into manufacturing costs.

Salary of production supervisor                                        $ 40,000

Indirect materials                                                                $   8,000

Rent on factory equipment                                                <u>$  20,000</u>

Total manufacturing costs                                                  <u>$ 68,000</u>

Estimated Machine Hours                                                      16,000

Manufacturing Overhead - $ 68,000/ 16,000 hours         $   4.25 per machine hours                                        

The other items provided in the question, sales commission and advertising expenses are selling expenses and are not manufacturing costs.

6 0
3 years ago
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required i
dimulka [17.4K]

Answer:

16.7%

Explanation:

The simple rate of return is the annual net income divided by the initial investment in the proposed investment project.

The annual net income is the annual cash flow of $8,400 minus annual depreciation charge.

annual depreciation=cost -salvage value/useful life=($36,000-$0)/15=$2400

annual net income=$8,400-$2,400=$6000

simple rate of return =annual net income/initial investment

initial investment is $36,000

simple rate of return=$6,000/$36,000=16.7%

The second option,16,7% is the correct answer

8 0
4 years ago
How can a business deal with employees who have lack of focus and future goals ?​
LenKa [72]

Answer:

motivation

Explanation:

Encourage them,make them see vision .

5 0
3 years ago
Other questions:
  • Which of the following is a potential operating instrument for the central​ bank? A. The M1 money supply B. The monetary base C.
    11·1 answer
  • Workshape Company sells office chairs at $400 per unit, incurs variable cost per unit of $150, and has a total fixed expense of
    5·1 answer
  • Rachel is the managing director of LivviPro Inc., a life insurance agency. She believes in using various disciplines such as soc
    12·1 answer
  • What do you call a bat with hands, and, feet and, a cape...
    8·1 answer
  • 3. For a nonrival good like pay-per-view television programs, the private market will lead to: consumption of too much of the go
    7·1 answer
  • The maintenance expense (paid at the end of the year) on a machine, with 6 years of useful life, is expected to be (in constant
    6·1 answer
  • There are several criticisms of the minimum wage. Which of the following is not one of those criticisms? The minimum wage a. oft
    8·1 answer
  • A corporation issued 5,900 shares of $10 par value common stock in exchange for some land with a market value of $88,000. The en
    8·1 answer
  • Rate * 1.5 represents what?
    15·1 answer
  • Dessa​ Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other applications within the home. I
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!