Business, 18.09.2019 05:30, eburnhisel2023

Acouple thinking about retirement decide to put aside $2,100 each year in a savings plan that earns 7% interest. in 10 years they will receive a gift of $29,000 that also can be invested. a. how much money will they have accumulated 30 years from now? (do not round intermediate calculations. round your answer to 2 decimal places.)

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answered: jimyyyy

310,588.5

Explanation:

As is not said we can assume the 2,100 each year to be paid at the end of the year, and the 7% to be used as a compunded anually rate. So let´s first think just about the 2,100, as they are regulary payments, they can be seen as an anuity inmediate, the formula is as follows:

$s_{n}=p*\frac{(1+i)^{n}-1 }{i}$

where sn is the future value of the regular payments, i is the interest rate and n is the number of payments and p is the amount of regular payment so in this particular case we have:

$s_{n}=2,100*\frac{(1+0.07)^{30}-1 }{0.07}$

$s_{n}=$ =198,367.65

So now let´s think on the gift of 29,000 as it is paid on 10 years, there will remain 20 years with an investment rate of 7% compounded anually. so there we have the classic formula of future value

$FV=VP*(1+i)^{n}$

where FV is the future value, PV is the present value, i is the interest rate per period, and n is the number of periods. Again in this particular case we have:

$FV=29,000*(1+0.07)^{20}$

FV=112,220.85

so the total amont will be:

total=198,367.65+112,220.85

total=310,588.5

answered: Guest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answered: Guest

it is a i took the test.

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Acouple thinking about retirement decide to put aside $2,100 each year in a savings plan that earns...