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kompoz [17]
2 years ago
11

Nicole is considering opening a Roth Individual Retirement Account. If she invests into the Roth IRA, determine the amount in th

e account if she makes annual payments of $4,291 into an account paying 2. 23% interest compounded annually for 30 years. A. $132,259. 66 b. $132,505. 45 c. $184,513. 76 d. $180,488. 86.
Business
1 answer:
Mamont248 [21]2 years ago
6 0

The future amount in the account (Roth IRA) is equal to: D. $180,488. 86.

<u>Given the following data:</u>

  • Principal = $4,291
  • Interest rate = 2.23%
  • Time = 30 years

To determine the future amount in the account:

Mathematically, the compound interest for this Roth IRA is given by the formula:

A = \frac{P(1\;+\;r)^t -1}{r}

<u>Where:</u>

  • P is the principal.
  • r is the interest rate.
  • t is the number of years.
  • A is the future amount.

Substituting the given parameters into the formula, we have;

A = \frac{4291(1\;+\;0.0223)^{30} -1}{0.0223}\\\\A = \frac{4291(1.0223)^{30} -1}{0.0223}\\\\A = \frac{4291(1.93798684094 -1}{0.0223}\\\\A = \frac{4291(0.93798684094)}{0.0223}\\\\A = \frac{4024.901534474}{0.0223}

A = $180,488.86

Read more on compound interest here: brainly.com/question/25263325

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Match each stage of the business life cycle to its corresponding description.
slega [8]

The business life cycle corresponds to the stages that a business goes through throughout its existence in the market, which are existence, survival of the fittest, success, take-off and maturity. The correct sequence for this question is C B D A E.

<h3>Maturity</h3>

The business is separate from the owner with responsibilities delegated to staff. A business in this stage usually commands a considerable share of the market and may even be a household name.

<h3>Takeoff</h3>

Expansion strategies are implemented, and investment is balanced with potential.

<h3>Existence</h3>

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<h3>Success</h3>

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<h3>Survival of the Fittest</h3>

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Therefore, the business life cycle will help management to manage its resources according to the business phase and make more effective decisions for competitiveness and organizational positioning.

The correct answer is:

C. Maturity

B. Takeoff

D. Existence

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brainly.com/question/25754149

8 0
2 years ago
Suppose Congress approves a proposed "temporary worker" program and American firms find
dybincka [34]

Answer:

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3 years ago
Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios?
alex41 [277]

Answer:

First scenario    amount realized is $85,000

Second scenario    amount realized is $105,000

Third scenario    amount realized is $72,000

Explanation:

first scenario:

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vehicle worth       $10,000

selling expense   ($5,000)

Amount realized  $85,000

second  scenario:

Cash  proceeds        $80,000

mortgage relief        $30,000

selling commission   ($5,000)

Amount realized        $105,000

Third scenario:

Cash  proceeds        $20,000

land worth                $50,000

Marketable securities $10,000

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Amount realized        $72,000

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6 0
3 years ago
The time value of money refers to the issue of:
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Answer:

D. what the value of the stream of future cash flows is today

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The times' value of money derives that today value or we can say the present value is more than the value earned at the future or future value because of the earning capacity due to inflation. As inflation rises, consumer spending become less as compare to before

Just take an example

If you invest $1,000 today that earns the interest rate at 10% for one year

So, the present value = $1,000

And, the future value = $1,000 × 1.1 = $1,100

So, today value is becoming more worth than the future value  

The formula to compute the future value is shown below:

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Note: The yoda is actually today. It is given wrong

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