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andrey2020 [161]
2 years ago
8

Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.1 percent until you retire in 45 years.

You believe that interest rates will increase over the next year and you would be offered 4.7 percent per year one year from today. If you plan to deposit $11,500 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit
Business
1 answer:
grigory [225]2 years ago
7 0

Answer:

If you wait one year, in 45 years you will have $16,624.04 more than investing today.

Explanation:

Giving the following information:

Option 1:

Initial investment= $11,500

Number of years= 45

Interest rate= 4.1%

Option 2:

Initial investment= $11,500

Number of years= 44

Interest rate= 4.7%

To calculate the future value for both options, we need to use the following formula:

FV= PV*(1+i)^n

<u>Option 1:</u>

FV= 11,500*(1.041^45)= $70,142.41

<u>Option 2:</u>

FV= 11,500*(1.047^44)

FV= $86,766.45

If you wait one year, in 45 years you will have $16,624.04 more than investing today.

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The balance sheet of Purdy's BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectivel
Amiraneli [1.4K]

Answer:

Option (B) is correct.

Explanation:

Given that,

Total assets (Beginning) = $800,000

Total assets (Ending) = $900,000

Net income = $85,000

Sales = $1,700,000

Average assets = [Total assets (Beginning) + Total assets (Ending)] ÷ 2

                          = [$800,000 + $900,000] ÷ 2

                          = 850,000

Purdy's asset turnover:

= Sales ÷ Average assets

= $1,700,000 ÷ 850,000

= 2

4 0
2 years ago
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay
viva [34]

Answer:

the profits of her firm might increase.

Explanation:

Efficient wage theory postulates that productivity will increase as a result of increased wages. This is because the employee is more motivated to work when they are earning higher wages.

Efficiency wages are higher than the equillibrum wage paid in the industry.

Managers favour efficient wage payment because it reduces staff turnover and attracts more productive employees to the company.

On the other hand the manager can also cut down salary and employ more workers to perform the task.

8 0
2 years ago
The Hub is a business dedicated to providing rentable work spaces for local companies or self-employed individuals. As they begi
Alex

Question lacks some precise information about the cash flow. However it would be inferred IBM has a positive future investment value.

Answer:

<u>IBM</u>

Explanation:

Remember, the answer depends on the discounted cash flow results irrespective of which offer has lower cost.

Since IBM offers the computers for a single payment of $55,000 due at the end of four years. The Hub could reach a decision if the present value of money calculated by means of discounted cash flow is higher than the current cost of the investment, the Hub could then purchase the computers from IBM.

6 0
2 years ago
Read 2 more answers
Lou Ling, owner of Lou’s Lube, estimates that he will need $70,000 for new equipment in 7 years. Lou decided to put aside money
igor_vitrenko [27]

Answer:

The principal amount to be to be invested=$46,613.95

Explanation:

The total amount that Lou needs to invest with Reel bank in order to have for new equipment in 7 years is known as the principal amount.

The formula for calculating total amount on investment compounded quarterly;

A=P(1+r/n)^nt

A = the future value of the investment, including the interest

P = the initial investment amount

r = the annual interest rate

n = the number of times that interest is compounded per unit t

t = the time the money is invested or borrowed for

For our case;

A=$70,000

P=p

r=6/100=0.06

n=compounded quarterly=4

t=7 years

replacing;

70,000=p(1+0.06/4)^(4×7)

70,000=p(1.015)^28

70,000=1.517 p

1.517 p=70,000

p=70,000/1.517

p=46,613.95

The principal amount to be to be invested=$46,613.95

5 0
2 years ago
Data were collected in twenty major urban areas on the percent of women in the labor force. Data were collected in 1968 and agai
garri49 [273]

Answer: Matched pairs design

Explanation:

A matched pairs design is a type of study used when 2 treaments are present in an experiment. The individuals in the design can be divided into pairs using a blocking variable, and each pair can then be allocated to treatments at random. This is thus a special type of randomized block design.

In this case the blocking variable can be the various urban areas as 1968 is matched against 1972. Each city can be compared based on 2 measurements. From their each individual can be grouped into pairs and allocated to different treatments.

6 0
2 years ago
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