Please answer all or none! Thank You. 6 a. You have $15,000 invested today. If y

Question

Please answer all or none! Thank You.

6

a. You have $15,000 invested today. If you add $500 per month to your investments, after 30 years, assuming 8.1% annual interest, how much do you have total?

b. If you invest $475 per month for a period of 30 years, earning 10.2% (annual), how much will you have at the end of the period?

c. Which of the following ratios must include revenue or sales data in order to be accurate?

Quick ratio

Profit margin

Current ratio

Total debt

Quick ratio

Profit margin

Current ratio

Total debt

Explanation / Answer

Part A

PV = 15,000

PMT = 500

N = 30 years

N = 30 * 12 = 360

I = 8.1%

I = 0.68%

Using Financial calculator, we will calculate future value of payment

FV = 769,835.58

Using Financial calculator, we will calculate future value of present value

FV = 172,046.46

Total = 941,882.04

Part B

PMT = $475

N = 30 * 12 = 360

Monthly Rate (I) = 10.2%/ 12

Monthly Rate (I) = 0.85%

PV = 0

Using Financial Calculator:

FV = 1,120,638.43

Part 3

We will include sales in calculating profit margin.

Profit Margin = Net Income/ Sales

In rest all the options we will not use sales to calculate the options

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