The entry to close the expense accounts includes - a debit to retained earnings and credits to the respective expense accounts i.e. Options 1 and 4
An expense account helps you track and sort the different costs your business has during a time span. Costs in a business ledger are expanded by charges and diminished by credits. Your business ledger increments when you burn through cash. Business ledgers are viewed as impermanent records, meaning they reset when another period begins.
Separate your business ledger into more modest sub-accounts. Like that, you can see which costs you spend the most on, better track your cash, and remain coordinated.
Sub-accounts rattle off the amount you spend on each sort of cost. You can make sub-represents every one of your costs, similar to finance and publicizing.
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Correct Question -
The entry to close the expense accounts includes:
Multiple Choice
a credit to all expense accounts a credit to retained earnings. a credit to retained earnings. a debit to retained earnings. a debit to all expense accounts.a company purchased a $100,000 building in exchange for a 20-year note payable. the company recorded a $100,000 increase in the building account and a $100,000 decrease in cash. as a result of this error, .(check all that apply.)
-The company's total assets will be overstated.
-The company's total liabilities will be understated.
-The company's net income will be overstated.
-The company's equity will be understated.
A. The note payable account should have increased by $100,000
B. The cash account should have increased by $100,000
C. The company's total assets were overstated by $100,000
D. The company's total liabilities were understated by $100,000
A, B, and D are correct. The note payable account should have increased by $100,000, the cash account should have increased by $100,000, and the company's total liabilities were understated by $100,000. The company's total assets were not overstated.
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how much price prentice hall united states history online textbook?
The price of a textbook, including the Prentice Hall United States History textbook, can vary depending on several factors, such as the format (e.g. print or digital), the edition, and the seller.
I would suggest checking with online retailers such as Amazon, Barnes & Noble to see the latest prices for the specific edition you need.
Additionally, some educational institutions may offer students access to digital versions of textbooks through their learning management systems or other platforms, so it may be worth checking with your school to see if they have a subscription to the Prentice Hall United States History textbook that you can access.
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risk and return go together. cash isn't very risky but has next to no return. in fact, the cash in your wallet is losing value due to inflation. which option could you pick to take on the smallest amount of risk and still earn some interest for your emergency fund?
A certificate of deposit is a type of savings product that accrues interest on a single sum of money for a fix amount of time. CDs take on the smallest amount of risk and provide interest for your emergency fund.
A certificate of deposit (CD) is a type of savings account where the issuing bank pays interest in exchange for holding a specified sum of money for a predetermined length of time, such as six months, a year, five years. You will receive the amount you initially invested plus any income when you pay in or redeem your CD. One of the safest ways to save money is using certificates of deposit. A CD purchased from a bank that is federally insured is covered up to $250,000 in loss. Not each CD or accounts you have at the bank, but all accounts under your name at that bank are covered by the $250,000 insurance. Although the customer who opens a CD might get a paper certificate, it is now typical for a CD to just be made up of a book entry and something that appears on the consumer's regular bank statements. In other words, there is frequently no "certificate" per per. Customers can demand a paper record from the bank or print their own using the financial organization's online banking service if they desire a physical record that proves their CD purchase.
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what is the present value (as of today) of the expected cash flow produced by a building in 3 years if the building is worth $2300000, the cost of capital is 4.0%, and annual fixed cash flows are expected with the first one due in one year?(round the value to 0th decimal to get a whole number)
The present value of the expected cash flow from a building worth $2300000, with an annual fixed cash flow and the first one due in one year, is $2,116,537 when the cost of capital is 4.0%.
This value can be calculated by using the present value formula, which takes into account the time value of money and the cost of capital.
Calculate the annual fixed cash flow (CF): CF = $2300000 / 3 = $766667.Calculate the present value (PV): PV = CF / (1 + r)^n, where r is the cost of capital (4.0%) and n is the number of years (3).Plug in the values into the equation: PV = $766667 / (1 + 0.04)^3 = $2,116,537.Round the value to 0th decimal to get a whole number: $2,116,537.The present value of the expected cash flow is $2,116,537.
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The specific data that Nielsen provides to its clients for a specific purpose that has not been completed before, is most likely which type of data? Descriptive Exploratory Causal Secondary Primary
The correct option is E. The specific data that Nielsen provides to its clients for a specific purpose that has not been completed before, is most likely the primary type of data.
Refers to immediately measured or accumulated information consultant of activities at a particular facility or set of centers. Case-specific facts way nonaggregated data that provide facts approximately people within a group. A facts point or commentary is a hard and fast of one or greater measurements on an unmarried member of the unit of remark.
Records series is the process of amassing and studying records on relevant variables in a predetermined, methodical manner so that you will reply to unique study questions, check hypotheses, and investigate results. data analysis is described as a procedure of cleansing, reworking, and modeling statistics to discover beneficial facts for enterprise selection-making. The reason for information analysis is to extract beneficial information from information and taking a decision based on the information analysis.
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Complete Question:
The specific data that Nielsen provides to its clients for a specific purpose that has not been completed before, is most likely which type of data?
A). Descriptive
B). Exploratory
C). Causal
D). Secondary
E). Primary
which organization provides an international forum for reaching trade agreements and resolving disputes among its members?
The WTO's main responsibilities include acting as a platform for international trade negotiations.
Such as the Doha Development Round, resolving trade disputes (Dispute Settlement), and developing trade agreements as a way to regulate trade law. The World Trade Organization was founded in 1995. One of the more recent international organisations, the World Trade Organization (WTO), took the place of the General Agreement on Tariffs and Trade (GATT), which was established following World War II. The WTO is only a few years old, in contrast to the roughly 70 years that have passed since the GATT initially established the global trading system.
Over the past 70 years, there has been an extraordinary expansion in global trade. The average annual increase in exports of goods is 6%.
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vineland and moonited republic produce wine and cheese. the opportunity cost for the production of a bottle of wine in vineland is two pounds of cheese, and in the moonited republic is 2.5 pounds of cheese. based on this information, it can be concluded that
The opportunity cost of production is the cost of the next best alternative that must be given up in order to produce a certain good.
In this case, the opportunity cost of producing a bottle of wine in Vineland is two pounds of cheese, while in the Moonited Republic it is 2.5 pounds of cheese. This means that if Vineland decides to produce one bottle of wine, it must give up two pounds of cheese, and if the Moonited Republic produces one bottle of wine, it must give up 2.5 pounds of cheese. From this information, it can be concluded that the Moonited Republic has a higher opportunity cost of production for wine compared to Vineland. This means that it is more costly for the Moonited Republic to produce wine, and as a result, it is likely to produce less wine and more cheese compared to Vineland. On the other hand, Vineland has a lower opportunity cost of production for wine, so it is more likely to produce more wine and less cheese. In conclusion, the opportunity cost of production provides useful information for both countries to make informed decisions about the allocation of their resources and the mix of goods they should produce. By comparing the opportunity costs of different goods, they can determine which goods they should specialize in producing and which ones they should trade with each other.
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assume that $18,600 cash is paid for insurance to cover the next year. the appropriate debit and credit would be:
The appropriate debit and credit would be:
Debit: Insurance Expense 18,600
Credit: Cash 18,600
This journal entry is used to record the payment of insurance for the next year. The debit to insurance expense is used to record the cost of the insurance that is being purchased. The credit to cash is used to record the payment of cash for the insurance.
The debit and credit both total $18,600, which is the amount paid for the insurance. Insurance is an important cost of doing business and should be accounted for accurately. This entry ensures that the cost of the insurance is properly recorded in the company’s financial statements.
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In a bilateral contract, the consideration for each promise is _____. a. forbearance b. a return promise c. refraining from doing something the contracting party is otherwise legally entitled to do d. an invitation to negotiate e. actually doing the act called for in the contract
In a bilateral contract, the consideration for each promise is a return promise. The correct option is b.
What is a bilateral contract?A bilateral contract is a binding agreement between two parties where both exchanges promise to perform and fulfil one side of a bargain. This contract type is one of the most common binding agreements used because it turns both parties into what is known as an obligor, in other words, a person or party that is bound to another. Bilateral contracts are so commonly used that it is often interchanged with the term sales contract.
Within the bilateral contract, if an obligor fails to meet their end of the deal, then they’ve breached the contract.
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8. the non-business group that realized the most significant, lasting gains from world war i was a) labor. b) blacks. c) the klu klux klan. d) women. e) veterans.
Option e is Correct. Veterans were the non-business group that benefited most significantly and permanently from World War I.
A veteran is anyone who has ever served in the Army, Navy, Air Force, Marines, or Coast Guard. This is true whether the service was performed during a time of peace or war, in an area where there was active fighting, or at home.
A recently passed law grants Soldiers and Airmen in the Guard who have served for at least 20 years official veteran status. Previously, a Guard member could only be regarded as a veteran if they had completed 180 days in non-business or more of non-training government service.
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which of the following are disadvantages of international joint ventures? multiple select question. shared marketing expertise access to markets where goods and services must be produced locally the joint venture may become too large and inflexible shared technology may become obsolete
shared marketing expertise: Because partners in joint ventures must pool their resources and decide jointly, this can lead to a lack of focus and diminished competitiveness. As a result, joint ventures may restrict each partner's marketing knowledge.
Access to markets where products and services must be locally produced: Due to regional laws and cultural variations, joint ventures may encounter obstacles when trying to enter some markets.
The joint venture may expand to an unmanageable size and become rigid: when global joint ventures expand, they might become unmanageably huge and complicated, making it challenging to take swift, decisive action. Reduced adaptability and response to market changes may follow from this.
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what is a provision in a contract mandating that all disputes arising under the contract be settled by arbitration called?
A contract's binding arbitration clause, which stipulates that any disputes arising out of it must be resolved by arbitration, is the main mechanism for obtaining arbitration.
The parties include an arbitration of clause in the relevant contract for any potential future issues emerging under it. By agreeing to a contract that includes a mandatory binding arbitration clause, you consent to having any and specific disagreements about the terms of the agreement resolved by an arbitrator rather than a judge. You might also consent to give up additional rights, like the right to file an appeal or take part in a class action lawsuit.
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when analyzing data where there is no steady increase or decrease over time that can be observed, which method of forecasting would best fit?
When analyzing data with no clear upward or downward trend, it is best to use a method of forecasting known as a "time series model with a stationary mean".
In such cases, the mean value of the data points remains constant over time, and fluctuations in the data are due to random noise. The most common time series model used in this situation is the ARIMA (AutoRegressive Integrated Moving Average) model. ARIMA models can handle non-stationary time series data, but it can be more difficult to identify the best parameters for forecasting. The choice of ARIMA model will depend on the specific characteristics of the data and the goals of the forecasting analysis.
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which of the following stages has a positive cash flow? question 24 options: seed/start-up stage early stage expansion stage later stage
The answer is expansion stage, it is one of the stages to have positive cash flow.
Simply put, what is cash flow?Cash flow is a metric used to determine how much money a company earned or spent overall during a given period of time. On the statement of cash flows, a common financial statement, cash flow is often segmented into cash flow from operating operations, cash flow from investing activities, and cash flow from financing activities.
Why is there a cash flow?The goal of a cash flow statement is to paint a thorough picture of what happened to a company's cash over a given time period, also referred to as the accounting period. Based on how much money is coming into and going out of the company, it shows how well a company can operate both in the short and long term.
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What is the amount a business receives from the sale of an item?
selling price the amount a business receives from the sale of an item of merchandise The money that is brought by the business activities of a company is known as revenue.
Revenue is of two types i.e. operating revenue and non-operating revenue. The money that is brought by the business activities of a company is known as revenue .Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement. Revenue is money brought into a company by its business activities. There are different ways to calculate revenue, depending on the accounting method employed. Accrual accounting will include sales made on credit as revenue for goods or services delivered to the customer. Under certain rules, revenue is recognized even if payment has not yet been received.
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suppose mr. rosevell wants to generate a five-year annuity cash flow of $1000/year. how much must be invested today? assume that the first payment will be one year from today and assume that the interest rate will keep constant at 12%.
The amount that must be invested today to generate a five-year annuity cash flow of $1000/year is $5,068.31. This is calculated using the present value of an annuity formula with a payment of $1,000, an interest rate of 12%, and a total of 5 periods.
The amount that must be invested today is $8,084. This is calculated by using the present value of an annuity formula, which is PV = PMT * ((1 - (1 / (1 + r)^n)) / r).
In this case, PMT = $1000, r = 12%, and n = 5. Plugging these into the formula gives us PV = $1000 * ((1 - (1 / (1 + 0.12)^5)) / 0.12) = $8,084.
So, Mr. Rosevell must invest $8,084 today in order to generate a five-year annuity cash flow of $1000/year. The first payment will be one year from today and the interest rate will stay constant at 12%.
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why does demand equal marginal revenue for perfectly competitive firms byt marginal revenue is than the demand curve for all imperfectly comepetive firms
In a perfectly competitive market, firms are price takers and have no control over the market price. The market determines the price and firms must accept it.
Since the demand curve is perfectly elastic for a perfectly competitive firm, the marginal revenue is equal to the market price. This means that the firm can sell one more unit without changing the price, so the revenue from that unit is equal to the market price. On the other hand, in an imperfectly competitive market, firms have some degree of market power and are able to influence the market price. The demand curve for the firm's product is downward sloping, meaning that as the firm increases its output, the market price will decrease. In this case, the marginal revenue is less than the demand curve.
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Make a poster that could be used to educate people about why the
government needs to charge taxes. The poster should encourage private
individuals to pay their taxes by educating them about what the government
uses the taxes for.
Taxes are used by the government for carrying out various welfare schemes including employment programmes
What are the taxes collected by the government?It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc. Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied. Income tax, wealth tax, corporation tax, and property tax are some examples of direct tax.The Central Government of India imposes taxes such as customs duty, central excise duty, income tax, and service tax. The state governments impose income tax on agricultural income, state excise duty, professional tax, land revenue and stamp dutyThe three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and feesTo learn more about taxes collected by the government refers to:
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Pays for everything from Social Security and Medicare to military equipment, highway maintenance, education, and more
Why does the government need to force individuals to pay taxes?We pay taxes to ensure that our federal, state, and local governments can function efficiently and deliver essential services. Each government has its own emphasis, with the federal government in charge of big-picture expenditures on items like military and Social Security. Spending by the federal government covers everything from Social Security and Medicare to military equipment, transportation repair, education, and more. The federal government spent the most on Social Security in 2022.
Taxation generates cash for federal, state, and municipal governments to support vital services like as defense, highways, police, and a judicial system, which benefit all residents who would be unable to provide such services successfully for themselves.
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when a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is blank . multiple choice question. profit oriented price oriented sales oriented market oriented
When a firm has moved beyond a production or selling orientation and attempts to discover and satisfy its customers' needs and wants, the firm is market oriented.
What is market oriented?An approach to company known as "market orientation" places a high priority on determining consumer requirements and desires and developing goods and services that address them.
The success of a business depends on ensuring that customers are aware of a product or service and how to get it. Coca-Cola, Kleenex, Apple, and Amazon are among corporations that might be regarded of as having a market orientation.
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what will happen to a firm found to be in violation if the company had proactively tried to prevent misconduct from occurring?
When has the company taken proactive steps to prevent misconduct when it has identified a violation Penalties or fines are reduced. When creating an annual budget, few people think about how to prevent unethical behavior in the workplace.
When creating an annual budget, few people think about how to prevent unethical behavior in the workplace. According to a report to the Association of National Chartered Fraud Examiners (ACFE), a typical company could expect to lose 5% of his annual revenue to fraud. Corruption has always been the most pressing concern for large businesses, while small businesses face check manipulation, skimming and payroll fraud more frequently. Despite these differences in fraud techniques, the study found that the median loss of $120,000 reported varies little by company size. Just as employees are susceptible to gradual ethical erosion, they are equally open to positive influence. Research has shown that “nudges” in the right direction such as, for example, by signing a document confirming the legitimacy of a mileage fee just prior to actually submitting the mileage number, can unwittingly encourage employees to make more money.
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In routine problem solving, the number of external information sources used is typically which of the following?a. noneb. a fewc. there is wide variationd. manye. one
The correct answer is a. none.In routine problem solving, the number of external information sources used is typically.
When purchasing a new, pricey, or seldom purchased item, consumers engage in lengthy problem solving. Consumers have the option to search internally or outside throughout the information search phase. A buyer's memory, knowledge of the good or service, and particular alternatives they can recollect are all used in an internal search. Consumer engagement in the external information search process is influenced by things like price and the significance of the product. The desire for cognition is a personality trait that connects the urge to promptly act with the need to examine alternatives.
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consumers in a small economy spend $53,000 on goods and services annually. also annually, investment is $12,000, government spending is $6,500, exports are $400, and imports are $300. what is the value of gdp in this economy?
The value of the GDP in this small economy is $71,600.
Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country's borders in a given period of time. One way to calculate GDP is by using the expenditure approach, which adds up all of the spending on final goods and services in the economy. The expenditure approach will be expressed as:
GDP = Consumption+ Investment+ Government Spending+ Exports - Imports
We are given the following values:
Consumption (C) = $53,000
Investment (I) = $12,000
Government Spending (G) = $6,500
Exports (X) = $400
Imports (M) = $300
Substituting these values into the formula:
GDP = C+ I+ G+ X - M
GDP = $53,000 + $12,000 + $6,500 + $400 - $300
GDP = $71,600
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the acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in client and customer demands is called
The acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in client and customer demands is called development.
According to the Society for Human Resources Development (SHRM), employee orientation (also known as organizational socialization) is "the process of helping new employees quickly and smoothly adjust to the social and performance aspects of a new job and learn attitudes, knowledge, and skills.
Organizational training is the transfer of knowledge within an organization. This type of training focuses on developing employees for their current jobs, but also prepares them for future roles and responsibilities. Organizational training allows employees to develop new skills.
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the opportunity cost of going to a particular college is not the same for everyone. question content area bottom part 1 true false
The opportunity cost of going to a particular college is not the same for everyone.
This is true because everyone's individual circumstances are different, so the costs and benefits associated with attending a college vary from person to person. For example, one student may have the financial resources to attend an expensive college, while another may not. Additionally, one student may be able to receive scholarships or grants that the other student may not. Furthermore, the desired programs offered, the potential career outcomes, and the potential for student involvement and networking all factor into the decision and vary from person to person. Ultimately, the opportunity cost of attending a college is determined by the individual’s current circumstances and long-term goals.
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example of a short-term capacity increase decision is: multiple choice adding specialized labor. installing new equipment. adding new facilities.
An example of a short-term capacity increase decision could be:Adding specialized labor This involves hiring additional workers with specific skills
This option can be quick to implement and provides flexibility, as the number of specialized workers can be easily scaled up or down depending on demand.
Installing new equipment: This involves investing in new machinery or equipment to increase production capacity. This option can be more expensive and time-consuming compared to adding specialized labor, but it can provide a long-term solution if the equipment is expected to last for several years.
Adding new facilities: This involves building or acquiring new facilities to expand production capacity. This option is the most expensive and time-consuming of the three, as it involves a significant investment in real estate and construction. However, it can provide a long-term solution for capacity constraints.
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Having an arena with bandwidth that is stronger than the average event venue is one way that the Atlanta Hawks have ______________________ their market offering.
a) segmented
b) micromarketed
c) differentiated
d) targeted
e) concentrated
The correct option is "c) differentiated". Differentiation refers to the process of creating a unique and distinguishable image for a product or service in order to set it apart from competitors.
In the context of the Atlanta Hawks, having an arena with stronger bandwidth than the average event venue is one way that the team has differentiated its market offering. By offering enhanced technological capabilities, the team has created a unique selling point that sets it apart from other event venues and appeals to a particular segment of the market. This type of differentiation allows the Atlanta Hawks to appeal to a specific segment of the market and stand out in a crowded and competitive industry. By offering a unique value proposition, the team can attract customers who are looking for a more technologically advanced event experience. Differentiation can also help to increase customer loyalty, as customers may be more likely to return to a venue that offers a unique and differentiated experience.
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when a party to a contract voluntarily relinquishes any right he has under a contract, including the right to receive return performance, it is called a(n) multiple choice discharge. accord. impracticability. waiver.
It is referred to as a(n) waiver when a party to a contract willingly renounces all rights he has thereunder, including the ability to demand back performance.
Is it typically used if a party fails to fulfill if a party knowingly waives their right to enforce the contract?When a party knowingly renounces their ability to have the contract enforced, it is known as waiving. Usually, a waiver is used when one side doesn't fulfill their obligations.
Which one of the following is the reward for fulfilling a contractual obligation?It is the reward one will receive after fulfilling a contractual duty. Anything can be considered as long as it results from a mutually agreed-upon trade. the harm that was promised in return for the pledge.
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select all that apply depreciation is the accountant's estimate of the cost of blank used in the production process matched with the benefits produced from owning it. multiple select question. fixed assets cash inventory equipment
Depreciation is the accountant's estimate of the cost of blank used in the production process matched with the benefits produced from owning itfixed assets, equipment
Depreciation is an accounting term that refers to the systematic and rational allocation of the cost of a tangible fixed asset over its useful life. This cost allocation is done to match the expenses incurred in acquiring and using the asset with the revenue generated from its use.
Fixed assets and equipment are physical assets that are used in the production process and have a useful life of more than one year. Depreciation is the method used to allocate the cost of these assets over their useful life. By matching the cost of the asset with the benefits produced from owning it, the company can more accurately reflect the true cost of production and the cost of providing goods or services.
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Depreciation is the accountant's estimate of the cost of "fixed assets" and "Equipment" used in the production process matched with the benefits produced from owning it. Correct options are A and D.
Depreciation is an accounting term used to describe the systematic allocation of the cost of a fixed asset over its useful life. Fixed assets are long-term assets that a company uses in its operations and are expected to provide benefits for more than one year, such as equipment, buildings, and machinery.
The purpose of depreciation is to match the cost of the asset with the benefits produced from owning it. This means that, over the course of the asset's useful life, the cost of the asset is spread out over the periods in which the company benefits from its use.
For example, if a company buys a piece of equipment for $100,000 that is expected to last for 5 years, the company might depreciate the equipment over those 5 years. This would mean that each year, the company would record $20,000 in depreciation expense in its financial statements.
In conclusion, depreciation is an important accounting tool used to allocate the cost of a fixed asset over its useful life, which helps to match the cost of the asset with the benefits produced from owning it.
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Complete question is:
Select all that apply:
Depreciation is the accountant's estimate of the cost of blank used in the production process matched with the benefits produced from owning it. A. fixed assets
B. cash
C. inventory
D. equipment
company x has 100 shares outstanding. it earns $1,000 per year and expects to pay all of it as dividends. if the firm expects to maintain this dividend forever, calculate the stock price immediately after the dividend payment. the required rate of return is 10%, and there are no taxes.
The stock price immediately after the dividend payment would be $90,909.09.
The price of a stock can be calculated using the dividend discount model, which states that the price of a stock is equal to the present value of all future dividends.
In this case, the firm earns $1,000 per year and plans to pay all of it as dividends, so the present value of one year's dividend is:
$1,000 / (1 + 0.1) = $909.09.
Since there are 100 shares outstanding, the stock price would be:
$909.09 × 100 = $90,909.09 per share.
The calculation assumes that the dividend is expected to be maintained forever, so the stock price is based on the perpetuity formula, which calculates the present value of an infinite stream of equal payments.
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sophia and mallory are the same age. at age 25, sophia invests $6,000 at 7 percent, compounded annually. at age 30, mallory invests $6,000 at 7 percent, compounded annually. all else constant, when they both reach age 60:
When they both reach 60, everything else remaining the same Mallory won't be as wealthy as Sophia.
What, for instance, is compound interest?For instance, if you deposit $1,000 in an account that pays 1% interest annually, after a year you will have received $10 in interest. Compound interest allowed you to earn 1% on $1,010 in Year Two, which came to $10.10 in interest payments for the year.
Interest that is earned on top of interest is referred to as compound interest. If you start with $100 and it generates 5% interest annually, you will have $105 at the conclusion of the first year, which demonstrates this using simple math. You will end the second year with $110.25 in your possession.
The compound interest formula can be used to determine who had more money at age 60.
A = P (1 + r/n )^nt
Here, P stands for the initial balance, r for the interest rate, n for the frequency with which interest is applied every time period, and t for the total number of time periods.
replacing the values for both Sophia and Mallory with the following;
Final amount for Sophia = [tex]6000 (1 + 0.07)^{35}[/tex]
Final amount for Sophia = [tex]6000 (1.07)^{35}[/tex]
Final amount for Sophia = $64,060
Now calculating for Mallory as follows;
Final amount for Mallory = [tex]6000 (1 + 0.07)^{30}[/tex]
Final amount for Mallory = [tex]6000 (1.07)^{30}[/tex]
Final amount for Mallory = $45,674
Sophia will therefore have more money than Mallory when they are both 60 years old.
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