The credit of the Discounts Allowed account This is done because the Discounts Allowed account is a revenue account, and revenue accounts are credited to reflect an increase in income.
The correct option is C
Discount allowed is a discount that a supplier or seller offers to the buyer or purchaser. In other words, it is a reduction in the price of the product or services rendered by the seller or supplier. The Cash Book is a subsidiary book of account where cash and bank transactions are recorded.In accounting, discounts allowed or discounts given are recorded in a general ledger account named Discounts Allowed. It is a contra revenue account that reduces the total revenue, the revenue accounts are also credited to represent an increase in income.
It is treated as an expense, and the expenses are recorded by debiting the respective account.On the other hand, discounts received or discounts earned is also a reduction in the price of the products or services that the buyer receives from the supplier. It is recorded in a general ledger account named Discounts Received. It is also a contra revenue account, and it is treated as income. The discount received account is debited to reflect the reduction of expenses.
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According to the aggregate expenditures model, total spending is made up of which of the following four categories
According to the aggregate expenditures model, total spending is composed of four categories: consumption (C), investment (I), government purchases (G), and net exports (NX).
The aggregate expenditures model identifies four categories that contribute to total spending in an economy. These categories are consumption (C), investment (I), government purchases (G), and net exports (NX).
Consumption (C) represents the spending by households on goods and services. It is influenced by factors such as disposable income, consumer confidence, and interest rates. Consumption expenditure is typically the largest component of total spending in many economies.
Investment (I) refers to spending by businesses on capital goods, such as machinery, equipment, and infrastructure. Investment is driven by factors like interest rates, business confidence, and expected returns on investment. It plays a crucial role in determining the level of economic activity and future growth prospects.
Government purchases (G) represent spending by the government on goods and services. This category includes expenditures on public infrastructure, defense, education, and healthcare. Government spending can have a significant impact on aggregate demand and can be used as a tool for fiscal policy to stabilize the economy.
Net exports (NX) represent the difference between exports and imports. Positive net exports indicate that the country is exporting more goods and services than it is importing, contributing to total spending. Negative net exports, also known as a trade deficit, imply that the country is importing more than it is exporting, reducing total spending.
In the aggregate expenditures model, the sum of these four categories (C + I + G + NX) represents the total spending or aggregate demand in an economy. By understanding and analyzing the determinants of each category, economists can assess the factors influencing economic growth and identify potential areas of policy intervention.
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Why very few subsistence economies exist today
Answer:
As previously mentioned,
subsistence markets are
extremely vulnerable to
external influences.
Because of this
vulnerability, these economies are
becoming more scarce around the
world. In the past, for example, large
populations of indigenous peoples lived
throughout North America.
Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.8% per year (EAR) for 3 years or a. an account that pays 2.5% every 6 months for 3 years? b. an account that pays 7.6% every 18 months for 3 years? c. an account that pays 0.51% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.8% per year for three years, the amount you will receive after three years is $ (Round to five decimal places.)
The account that pays 7.6% every 18 months has the highest EAR of 15.6% over 3 years. The account that pays 0.51% per month has the second-highest EAR of 20.77% over 3 years. The account that pays 2.5% every 6 months has the lowest EAR of 7.79% over 3 years.
To compare the different bank accounts, we need to calculate their Effective Annual Rates (EAR).
a. For an account that pays 2.5% every 6 months for 3 years:
Step 1: Calculate the semi-annual interest rate: 2.5% ÷ 2 = 1.25%
Step 2: Calculate the number of compounding periods: 3 years × 2 = 6 periods
Step 3: Calculate the EAR: (1 + 0.0125)^6 - 1 = 0.0779 or 7.79%
b. For an account that pays 7.6% every 18 months for 3 years:
Step 1: Calculate the 18-month interest rate: 7.6%
Step 2: Calculate the number of compounding periods: 3 years ÷ 1.5 = 2 periods
Step 3: Calculate the EAR: (1 + 0.076)^2 - 1 = 0.156 or 15.6%
c. For an account that pays 0.51% per month for 3 years:
Step 1: Calculate the monthly interest rate: 0.51%
Step 2: Calculate the number of compounding periods: 3 years × 12 = 36 periods
Step 3: Calculate the EAR: (1 + 0.0051)^36 - 1 = 0.2077 or 20.77%
Now, let's compare the different EARs with the current bank account that pays 5.8% per year.
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What type of communication would take the MOST planning?
A an email to a teacher about a late assignment
B a research paper on civil engineering
C a text to friends about an upcoming party
D a response to a discussion question
Answer: I could be wrong .. so I'm sorry if it is but I think it's B, I will take the test and confirm
Explanation:
sorry if wrong :(
how do changes to the federal funds rate affect the inflation rate?
The federal funds rate affect the inflation rate through its impact on the bank interest rate and money supply on the economy.
The Fed can control the inflation through the monetary policy related to interest rate and money supply on the market.
When the Fed decides to hold the inflation and slow down the economy, the Fed will increase the federal funds rate charged to the common banks. Those banks will try their best to keep their reserves to avoid borrowing reserves from other banks. Banks will increase their interest rate charged to the public.
Public will be attracted with the higher interest rate and prefer to save their money on banks instead of spending it on goods and services. This action will move the price equilibrium on the market and lower the Customer Price Index (CPI), that directly reflects on inflation rate.
When the Fed intends to boost the economy and trigger inflation to avoid deflation, the Fed will lower the federal funds rate. Common banks will also lower their interest rate, encourage public to submit for bank credits and increase the amounf of money supply in the economy.
This action will give the public an experience called "wealth effect". This condition will lead shift the demand curve to the right and bring the price equilibrium to a higher position. The Customer Price Index will increase and directly affect the inflation rate.
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the pension fund manager of utterback (a u.s. firm) purchased german 20-year treasury bonds instead of u.s. 20-year treasury bonds. the coupon rate was 2 percent lower on the german bonds. assume that the manager sold the bonds after five years. the yield over the five-year period was substantially more than the yield it would have received on the u.s. bonds over the same five-year period. explain how the german bonds could have generated a higher yield than the u.s. bonds for the manager, even if the exchange rate is stable over this five-year period. (assume that the price of either bond was initially equal to its respective par value). the german interest rates could have -select- while u.s. interest rates -select- , so that the value of the german bonds was higher than the value of u.s. bonds after five years. even if interest rates in both countries moved in the same direction, the german bonds could have generated a higher yield. if both interest rates increased, the u.s. interest rates could have increased to a -select- degree. if both interest rates decreased, the u.s. interest rates could have decreased by a -select- degree.
The pension fund manager of Utterback (a U.S. firm) purchased German 20-year treasury bonds instead of U.S. 20-year treasury bonds. The coupon rate was 2 percent lower on the German bonds.
Assuming that the manager sold the bonds after five years, the yield over the five-year period was substantially more than the yield it would have received on the U.S. bonds over the same five-year period.
This could have happened because German interest rates could have increased while U.S. interest rates decreased, so that the value of the German bonds was higher than the value of U.S. bonds after five years.
Even if interest rates in both countries moved in the same direction, the German bonds could have generated a higher yield. If both interest rates increased, the U.S. interest rates could have increased to a lesser degree.
If both interest rates decreased, the U.S. interest rates could have decreased by a greater degree.
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If Yolanda wishes to understand her coworkers more deeply, she should study their ______.
a. Body language
b. Family tree
c. TV viewing habits
d. Clothes
This is for career planning, there’s not a category for it.
Answer:
A. Body Language should be your answer
Answer:
A. Body Language
Explanation:
Body language can show a lot of things about a person, if they are uncomfortable, nervous, comfortable, in a rush, and all sorts of things!
Design, construction, tests, and use of eye and face protection must be in accordance with
ANSI
Name the two main types of fraud in the financial sector?
The most common scams in financial sector are embezzlement and identity theft.
Identity theft is one of the most well-known types of financial crime. When someone uses another person's identifying information without that person's consent, it is called identity theft.
This can include, among other information, names, credit card numbers, and social security numbers. Identity thieves frequently exploit the information they get to perpetrate fraud or other crimes.
Your information may be used by others to make credit applications, file tax returns, obtain healthcare, or even just to shop. Embankment is a prevalent instance of financial fraud.
A person who has been given access to property, money, or other assets commits this white-collar crime by misusing or stealing such resources for personal gain. When someone has legal access to another person's money or property, like in the workplace, embezzlement frequently happens.
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Virtual locations used only for posting job openings are called
job fairs
job search websites
referrals
social media
Virtual locations that are used only for posting job openings are job search websites.
It should be noted that job search websites are the websites where the people that are looking for jobs can log on to and search for the jobs that meet their skills. On the other hand, a job fair isn't virtual, it is a career fair where recruiters get candidates that can fill certain positions in a company. Also, a referral is when a person tells the job seeker to go and meet another individual regarding a job.Lastly, it should be noted that social media isn't used for posting jobs alone. There are several things posted on social media.In conclusion, the correct option is B
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Answer:
Job Search Website
Explanation: verified answer
Which demographic groups does Women in Motion serve?
Demographic groups do Women in Motion serve, Akela Peoples is an award-winning teacher and entrepreneur who has helped over 20,000 young women create career plans.
Demographic evaluation is the take a look at a populace primarily based totally on elements including age, race, and gender. Demographic information refers to statistically expressed socioeconomic records including employment, education, income, marriage rates, start rates and loss of life rates.
Examples of diagnosis. It is included. Demographic studies consist of 5 simple themes. Distribution over a geographical area. its composition (including age, gender, race, and different characteristics); modifications in populace size, distribution, and composition over time; Determinants and outcomes of populace growth.
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two difference between purchasing shares on the stock market and saving in a commercial bank
The main difference between investment banking and commercial banking is that investment banking typically deals with purchasing and selling bonds and stocks for companies , and also helping them issue IPOs , while commercial banks primarily deal with deposits or loans for companies or individuals .
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Commercial banks accept deposits, make loans, protect assets, and serve a wide range of customers, including the general public and businesses. In contrast, investment banks serve large corporations and institutional investors.
What commercial bank means?A commercial bank is a financial institution that accepts deposits from customers and provides loans and other services. Commercial banks offer basic banking services to their customers as well as small and medium-sized businesses.
One of the primary functions of an investment bank is to act as a go-between for corporations and investors via initial public offerings (IPOs). When a company decides to go public and seeks equity funding, investment banks offer underwriting services for new stock issues.
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What happens if you pay more than the minimum balance on your credit card each month? A. The total amount of interest paid will decrease, and the amount of time required to pay off the balance will decrease. B. The total amount of interest paid will decrease, and the amount of time required to pay off the balance will increase. C. The total amount of interest paid will increase, and the amount of time required to pay off the balance will increase. D. The total amount of interest paid will increase, and the amount of time required to pay off the balance will remain unchanged.
Answer:
D.
Explanation: it seems right
Use the price-demand equation to find E(p), the elasticity of demand. X=f(p) = 92 - 0.5 e^p E(p) = ____
The price-demand equation \(E(p) = -0.5p / (92 - 0.5 e^p).\)
To find E(p), we need to take the derivative of f(p) with respect to p, and multiply it by p/f(p):
\(f(p) = 92 - 0.5 e^p\)
\(f'(p) = -0.5 e^p\)
\(E(p) = (p/f(p)) * f'(p) = (p / (92 - 0.5 e^p)) * (-0.5 e^p)\)
\(E(p) = -0.5p / (92 - 0.5 e^p)\)
Therefore, \(E(p) = -0.5p / (92 - 0.5 e^p).\)
The price-demand equation relates the price of a good to the quantity of that good demanded by consumers. In this case, the equation is given as \(X=f(p) = 92 - 0.5 e^p\), where X is the quantity demanded and p is the price of the good.
The elasticity of demand, denoted by E(p), is a measure of how sensitive the quantity demanded is to changes in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price, or as the ratio of the change in quantity demanded to the change in price.
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Suppose that a popular hotel for vacationers in Orlando, Florida, has a total of 300 identical rooms. As many major airline companies do, this hotel has adopted an overbooking policy in an effort to maximize the usage of its available lodging capacity. Assume that each potential hotel customer holding a room reservation, independently of other customers, cancels the reservation or simply does not show up at the hotel on a given night with probability 0. 15. A. Find the largest number of room reservations that this hotel can book and still be at least 95% sure that everyone who shows up at the hotel will have a room on a given night. B. Given that the hotel books the number of reservations found in part a, find the probability that at least 90% of the available rooms will be occupied on a given night. C. Given that the hotel books the number of reservations found in part a, find the probability that at most 80% of the available rooms will be occupied on a given night. D. How does your answer to part a change as the required assurance rate increases from 95% to 97%? How does your answer to part a change as the required assurance rate increases from 95% to 99%?e. How does your answer to part a change as the cancellation rate varies between 5% and 25% (in increments of 5%)? Assume now that the required assurance rate remains at 95%
a. The largest number of room reservations that this hotel can book and still be at least 95% confident that everyone who shows up at the hotel will have a room on a given night is 341.
How to find the probability that at least 90% of the available rooms will be occupied on a given nightb. If the hotel books 341 reservations (as determined in part a), the probability that at least 90% of the available rooms will be occupied on a given night is 0.0072.
c. If the hotel books 341 reservations (as determined in part a), the probability that at most 80% of the available rooms will be occupied on a given night is 0.1157.
d. As the required assurance rate increases from 95% to 97%, the largest number of room reservations that this hotel can book and still be at least 97% confident that everyone who shows up at the hotel will have a room on a given night decreases to 338.8.
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Write short notes on-:
a)Micro enterprises
b)cottage industry
Answer:
cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility
Explanation:
When additional stock is issued to finance implementation of strategy, the existing stockholders' ownership and control of the enterprise are strengthened.
There different ways to handle stocks. When additional stock is issued to finance implementation of strategy, the existing stockholders' ownership and control of the enterprise are strengthened. is a true statement.
Stock is often described as the ownership of the stockholders in a specific company. An individual or a company can holds shares. They are called shareholders of the company and holds voting rights in important matters.
The ownership of the stockholders will rise when the stock is issued as a part of the business strategy.
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Peabody. Inc. Has 5000 shares 7% $100 psr value cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at Dec 31 2014 if the board of directors declare a $30000 dividen the?
If the board of directors declares a $30,000 dividend, the: preferred shareholders will receive the entire $30,000.
How to find the preferred shareholders?To calculate the dividend amount for each class of stock, we need to determine how much of the dividend will be allocated to the preferred stock and how much will be allocated to the common stock.
Since the preferred stock is cumulative, any dividends that were not paid in previous years will need to be paid before any dividends can be paid to the common stock. We can calculate the amount of cumulative dividends owed to the preferred stockholders as follows:
Cumulative Dividends Owed = 5000 shares x $100 psr value x 7% = $35,000
Since the board of directors has declared a $30,000 dividend, we can see that this amount is not enough to cover the full amount of cumulative dividends owed to the preferred stockholders. Therefore, the entire $30,000 dividend will be paid to the preferred stockholders, and none will be paid to the common stockholders.
The amount of cumulative dividends owed to the preferred stockholders will be reduced by $30,000, leaving a balance of $5,000. This amount will need to be paid before any future dividends can be paid to the common stockholders.
Therefore, the dividend amount for each class of stock is:
Preferred Stock: $30,000
Common Stock: $0
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Two coworkers at Nortel came up with an idea for renting software over the Internet.Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product.The establishment of a new company and assigning the employees in the division the task of making the idea a reality requires which management function?
A) communicating
B) controlling
C) organizing
D) planning
Answer:
C) organizing
Explanation:
From the question we are informed about Two coworkers at Nortel who came up with an idea for renting software over the Internet.Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product.In this case, the establishment of a new company and assigning the employees in the division the task of making the idea a reality requires organizing, which is a management function. Functional management can be regarded as most common type of organizational management, Management which is set of principles that relates to the functions such as planning, controlling as well as organizing and directing. Organizing can be regarded as process involving identification and grouping of work that is needed to be performed, it entails defining as well as delegating the responsibility. It can be regarded as establishment of relationships to enable people to work together in effective way to achieve goals
the chart shows the risk category, who is primarily responsible for the risk, the maximum possible and maximum probable loss, the risk severity score untreated and the risk severity score after risk management measures are applied. the chart katherine created is called a
The chart Jessica prepared is called a risk register (option b).
In this case, Jessica, the risk manager of a large technology company, prepared a chart to better understand the risks that her company faces. The chart lists all the risks and their related information, including the risk category, the primary responsible party for managing the risk, the maximum possible and maximum probable loss, the untreated risk severity score, and the risk severity score after implementing risk management measures.
A risk register is crucial in identifying the level of exposure a company has to various risks. Exposure is the extent to which a company is vulnerable to a particular risk and can suffer financial or other losses as a result.
In summary, a risk register is an essential tool in risk management that helps identify and prioritize risks and their level of exposure.
By creating a risk register, risk managers like Jessica can take appropriate steps to mitigate or avoid risks and ensure the long-term success and sustainability of their company.
So, the correct option is (b).
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Complete Question:
Jessica is the risk manager of a large technology company. To help better understand the risks that her company faces, Jessica prepared a chart listing all of the risks along with pertinent information about each risk. The chart shows the risk category, who is primarily responsible for the risk, the maximum possible and maximum probable loss, the risk severity score untreated and the risk severity score after risk management measures are applied. The chart Jessica prepared is called a
A) risk management information system.
B) risk register.
C) risk management matrix.
D) risk map.
Betsy Blackwell bought a mighty maid franchise she became a__ a) Manager. b) Stockholder. c) Coporation. d) Franchisee
Betsy Blackwell became a franchisee when she acquired a Mighty Maid business.
What is a franchisee?A franchise (or franchising) is a technique of selling goods or services that involves a franchisor who creates the brand's trade name and business model and a franchisee who pays a royalty and frequently an upfront fee to have the right to use the franchisor's name and system.
For the right to market the franchisor's well-known products and make use of its trademarks and insider information, the franchisee must pay a fee to the franchisor. The franchisor offers advice and assistance to the franchisee.
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Which of the following is true regarding states that have adopted the reasonably foreseeable users test for accountant liability to
third parties?
The reasonably foreseeable users test holds an accountant liable to any third-party who was or should have been foreseen as a possible user of the accountant's work product and did, in fact, use and rely upon that work product for a proper business purpose.
What is accountant?By gathering, monitoring, and making necessary corrections to the company's finances, an accountant assists organisations in making important financial decisions. Financial audits, bank statement reconciliation, and ensuring that financial records are accurate all year long are under their purview.
Account analysis, auditing, and financial statement analysis are examples of professional accounting duties carried out by accountants. Accountants can work for an accounting firm, a sizable business with an internal accounting division, or they can open their own practise.
These four areas of accounting are forensic, corporate, public, and governmental. For any accounting employment, an undergraduate degree is typically a requirement, however prior master's work—especially in the accounting field—is frequently greatly encouraged.
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For those with health issues, regular exercise is not generally recommended. Please select the best answer from the choices provided. T F D. soccer Please select the best answer from the choices provided. A B C DIt's recommended that those with osteoporosis __________. A. monitor their blood sugar levels throughout cardiorespiratory activities B. increase their bone density with high-intensity activities C. always have their inhalers close by during flexibility activities D. limit their overall activity time to 20 minutes per day Please select the best answer from the choices provided. A B C D Mark this and return
Answer:
For those with health issues, regular exercise is not generally recommended. regular exercise can be too hard for them. If they have Asma attacks, they can stop breathing if they run for too long
Explanation: my sister has a health issue
Answer:
FALSE
Explanation:
Assuming leisure is an ordinary good, how will a decrease in non-wage income M affect the optimal amount of leisure? Select one: a. The effect is ambiguous b. Leisure will decrease and labor will increase O C. Leisure will increase and labor will decrease
Assuming leisure is an ordinary good, a decrease in non-wage income M will affect the optimal amount of leisure in the following way: "Leisure will decrease and labor will increase".
When non-wage income M decreases, people have less income to spend on leisure activities. As a result, the opportunity cost of leisure increases, which makes leisure more expensive in terms of foregone income. This causes people to reduce their leisure time and instead work more to earn additional income. Therefore, a decrease in non-wage income M will lead to a decrease in the optimal amount of leisure and an increase in the optimal amount of labor.
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write a paragraph about business stocks
Answer:
Stocks are securities that represent an ownership share in a company. For companies, issuing stock is a way to raise money to grow and invest in their business. For investors, stocks are a way to grow their money and outpace inflation over time.
When you own stock in a company, you are called a shareholder because you share in the company's profits.
Explanation:
Mr. Chan is a financial adviser with First National Bank Ltd. Tom had $500,000 to invest. Tom hired Mr. Chan to advise on some appropriate investments. Mr. Chan advised Tom to put $250,000 into Vic Properties Ltd (VPL) and $250,000 into Oil Explorers Ltd (OEL). Tom paid Mr. Chan $2,500 for his advice. Tom invested $250,000 in VPL immediately. However, he only invested in OEL after making some enquires from an oil expert.
If Mr Chan had made the proper enquires he would have found that:
Because of the downturn in the property market VPL is expecting to make a large loss. Y’s $250,000 investment is now worth only $100,000.
OEL is being sued for $100 million. It has since gone into liquidation (bankruptcy) and Y has lost its $250,000.
Due to Mr. Chan's inadequate research and advice, Tom suffered significant losses in his investments. Tom invested $250,000 in Vic Properties Ltd (VPL), which experienced a downturn in the property market and resulted in a loss. His investment in VPL is now worth only $100,000. Additionally, Tom invested $250,000 in Oil Explorers Ltd (OEL), which was sued for $100 million and subsequently went into liquidation, causing Tom to lose his entire investment of $250,000. Mr. Chan received a fee of $2,500 for his advice.
1. Tom had $500,000 to invest and sought the advice of Mr. Chan, a financial adviser from First National Bank Ltd.
2. Mr. Chan advised Tom to invest $250,000 each in Vic Properties Ltd (VPL) and Oil Explorers Ltd (OEL).
3. Tom paid Mr. Chan $2,500 for his advice.
4. Tom immediately invested $250,000 in VPL without conducting further research.
5. Unfortunately, VPL experienced a downturn in the property market, resulting in a significant loss. Tom's $250,000 investment in VPL is now worth only $100,000.
6. Tom did not immediately invest in OEL and instead made inquiries from an oil expert.
7. Tom discovered that OEL was being sued for $100 million, which led to the company going into liquidation (bankruptcy).
8. As a result, Tom lost his entire investment of $250,000 in OEL.
9. It is evident that Mr. Chan did not properly inquire about the investment opportunities and provided inadequate advice to Tom.
10. Consequently, Tom suffered substantial financial losses due to Mr. Chan's negligence and incomplete research.
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What might be an advantage of using credit
Question 5(Multiple Choice Worth 3 points) (06.01 LC)
The U.S. government__________ to students who study certain fields in college and graduate school to increase the supply of educuated workers in these fields.
O gives tax breaks
O offers financial assistance
O gives homes
O offers free travel
Answer:
the answer is they offers financial assistance
This source of revenue for IOC came into being after the 1984 Olympic Games and is now one of the IOC's most significant sources of revenue. a. Licensing b. Broadcast Revenue C. TOPS program O d. Attendance Revenue
The source of revenue for the IOC that came into being after the 1984 Olympic Games and is now one of the IOC's most significant sources of revenue is the TOPS program (Option C).
The TOPS program, which stands for The Olympic Partner Program, was established by the International Olympic Committee (IOC) after the 1984 Olympic Games. This program involves partnerships and sponsorship agreements with various companies and brands, allowing them to become official sponsors and supporters of the Olympic Games. These sponsorships provide significant financial contributions to the IOC and play a crucial role in funding the Olympic Games. The TOPS program has become one of the IOC's primary sources of revenue, generating income through sponsorships, licensing, and marketing agreements with global companies.
Option C is answer.
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Your retired client has accumulated investment and retirement assets totaling $7,266,000. Assume the client expects to live for another 24 years and that he assumes an annual inflation rate of 1.48 percent. To leave his heirs the future value of the $7,266,000 at the end of the 24 years, the value of the assets at that time would need to grow to $_____. (Please write your answer in "Your Answer" box).
The $7,266,000 in investment and retirement assets that your retired customer has accumulated after 24 years of accumulation would need to expand in value to reach $12,747,408.55 at an annual inflation rate of 1.48 percent.
For more details, let's calculate the future value of the retirement assets to be left to his heirs over the given time period.
Step 1: Calculate Future Value The formula for calculating the future value of retirement assets can be derived as follows:
FV = PV (1 + r / n)^(n x t)Where, FV is the future value, PV is the present value, r is the interest rate, t is the number of years, and n is the compounding periods per year.
So, the following formula can be used to determine the future worth of the retirement assets that will be left to his heirs after 24 years: CFV = $7,266,000 x (1 + 0.0148 / 1)^(1 x 24)= $12,747,408.55
Therefore, the value of the assets at that time would need to grow to $12,747,408.55 to leave his heirs the future value of the $7,266,000 at the end of 24 years.
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