BUSINESS COLLEGE

Retirement savingsA couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested.

a. How much money will they have accumulated 30 years from now?

b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?

Answers

Answer 1

Answer:

Answer:

a. $408,334.39

b. $3,457.40

Explanation:

r = rate per period = 8% = 0.08

P = Initial Value of Gift = $10,000

t = time = 30 - 5 = 25, As received after 5 years.

$A = P (1 + r)^(t)$

$A = $10,000 (1 + 0.08)^(25)$

$A = $10,000 x 1.08^(25)$

A = $10,000 x 6.8485

A = $68,484.75

$FV of annuity = P [((1 + r)^(n) - 1)/(r) ]$

P = Periodic Payment = $3,000

n = number of periods = 30

$FV of annuity = 3,000 [((1 + 0.08)^(30) - 1)/(0.08) ]$

$FV of annuity = 3,000 [((1.08)^(30) - 1)/(0.08) ]$

$FV of annuity = 3,000 [\frac{10.0627 - 1} {0.08} ]$

$FV of annuity = 3,000 [\frac{9.0627} {0.08} ]$

FV of annuity = $3,000 x 113.2832

FV of annuity = $339,849.63

Accumulated value of money can be calculated as follows;

$68,484.75 + $339,849.63

$408,334.39

If they wish to retire with $800,000 savings, they need to save additional amount of money every year to provide additional amount of money, as follows;

$800,000 - $68,484.75

$731,515.24

The extra annual savings can be calculated as follows;

$731,515.24 = P [((1 + 0.08)^(30) - 1 )/(0.08) ]$

$731,515.24 = P x 113.28

Divide the above equation by 113.28 we get;

$P = (731,515.24)/(113.28)$

P = $6,457.40

They are already paying $3,000, So the extra saving they need make every year is calculated as follows;

$6,457.40 - $3,000

$3,457.40

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What is persecution

Answers

Answer:

: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.

Explanation:

Hostility and ill treatment especially because of race or political or religious beliefs; oppression

The following information is from ABC Company's general ledger: Beginning and ending inventories, respectively, for raw materials were $16,000 and $20,000 and for work in process were $40,000 and $44,000. Raw material purchases and direct labor costs incurred were $72,000 each, and manufacturing overhead applied amounted to $40,000. Determine the total cost of goods manufactured during the period.

Answers

Answer:

cost of goods manufactured= $176,000

Explanation:

Giving the following information:

Direct materials:

Beginning inventory= $16,000

Ending inventory= $20,000

Purchase= $72,000

WIP:

Beginning inventory= $40,000

Ending inventory= $44,000

Direct labor= $72,000

Manufacturing overhead applied= $40,000

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 16,000 + 72,000 - 20,000= 68,000

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Rapid prototyping could be an advantageous methodology for developing innovative computer-based instruction. Software engineers have been successful in designing applications by using rapid prototyping. So it also could be an efficient way to do instructional design.

Answers

Answer:

Yes Rapid prototyping can be an efficient way to do instructional design. Rapid prototyping is an instructional design approach which combines design, developmental and evaluation process. it is also a non-linear approach.

Explanation:

As a non linear approach, Rapid prototyping produces a sample working model that is a scaled-down representative version of the whole course. Rapid prototyping can be seen as an alternate approach to the traditional instructional design.

Instructional design is defined as the systematic approach to the development of instruction through the use of analysis, design, development, implementation and Evaluation. Designers can make use of Rapid prototyping or rapid instructional design when they face these factores; Time, budget and Environmental restraints.

Rapid prototyping is a very practical model for blended learning development, especially when only one person is involved. Rapid prototyping allows for learning as even the instructional designer is learning too.

According to the law of supply, when prices increase, the quantity of suppliers create _____.

Answers

Answer:

increase

listening to the law when a supplier increases the price their supply increases the quality aswell!!

the answer would be increase for the blank spot

Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,700. During the year, Abbott wrote off accounts receivable totaling $2,500 and made credit sales of $115,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be

Answers

Answer:Bad debts expense = $3,450

Explanation:Bad debt expense is the expense of account receivable that a business understands will not be paid due to the inability of a customer to pay its outstanding debt. Bad debt can be calculated using the direct write off method and the allowance method.

Here Abbot company uses the allowance method by taking into consideration a reserve which is an estimated percentage of the sales known as an adjusted risk for its customers who may not pay.

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Estimated Bad debt 3%

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The Discount on Bonds Payable account is: A. A liability. B. A contra liability. C. A contra expense. D. An expense. E. A contra equity.

Answers

Answer:

B. A contra liability

Explanation:

A contra liability account is an account that is paired with another liability account and used to reduce the liability in that account. The Discount on Bonds Payable, decreases the Value of Bonds.

Final answer:

The 'Discount on Bonds Payable' account is a contra liability. It's used to reduce the balance of the 'Bonds Payable' account. The discount is slowly amortized to interest expense over time.

Explanation:

The Discount on Bonds Payable account is a contra liability. In accounting, contra accounts are used to reduce the balance of their corresponding main accounts. Here, 'Discount on Bonds Payable' is used to reduce the balance of the 'Bonds Payable' account. For example, if a $10000 Bond is issued at a discount for $9500, the 'Bonds Payable' account would show $10000 and the 'Discount on Bonds Payable' would show $500 (which is a contra liability, not a regular liability). Over time, this discount is slowly amortized to interest expense, reducing the balance of the 'Discount on Bonds Payable' account and increasing the carrying value of the 'Bonds Payable' account.

Learn more about Discount on Bonds Payable here:

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