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lilavasa [31]
3 years ago
6

Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests $5,000 at 7 percent when he is 30

years old. Both investments compound interest annually. Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts? Sue will have less money when she retires than Neal. Neal will earn more interest on interest than Sue. Neal will earn more compound interest than Sue. If both Sue and Neal wait to age 70 to retire, then they will have equal amounts of savings. Sue will have more money than Neal as long as they retire at the same time
Business
1 answer:
dolphi86 [110]3 years ago
3 0

Answer:

Sue will have more money than Neal as long as they retire at the same time

Explanation:

Both Neal and Sue invest the same amount ($5,000) at same interest rate (7%). In the compound interest rate formula only the time is differ. When they retire at age 60, Sue has 5 years more than Neal meaning Sue earn more interest than Neal.

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Which of the following is true of business locations?
Mazyrski [523]

Answer:

B. Target market customers are essential factors for selecting business locations.

3 0
3 years ago
If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard
telo118 [61]

Answer:TRUE

Explanation: Standard deviation is the rate of spread of numbers or values around the Mean of the numbers or values, it can also be described as the square root of the variance of a set of numbers or values. In financial analysis, the rate of return is the amount net income of a business entity over a given period of time. A risk averse investor is an investor who will try as much as possible to avoid risk even with high profit investment.

So for a risk average person to take on the investment with higher standard deviation it means the rate of return will be Higher.

6 0
3 years ago
On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

6 0
3 years ago
A government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and en
balu736 [363]

The correct answer to this open question is the following.

Here we do not have a question. Just a statement.

What is your question? What do you want to know?

However, trying to help you we can comment on the following.

If the government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and encourage the use of bus and rail services instead, it had to make sure that the impact will have the expected benefits because that could not always be the case.  

Some other considerations need to be made for this to happen. For instance, if the government wants to dissuade people to use their cars, the government has to make sure that the public transportation system is in optimal conditions, it is safe to ride, and can guarantee the transportation times for people to be on time in their jobs.

Otherwise, people will still be driving their cars because they think that using cars is a more safe and better way to travel.

Public transportation also has to comply with strict pollution emissions controls.

3 0
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JulsSmile [24]
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3 years ago
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