Bill starts a retirement fund at age 21 and plans on depositing equal annual amounts on each birthday, starting
at age 21, and ending at age 60. He wants to have $2 million at age 60. John starts his fund on his 30th birthday.
He wants to deposit equal annual amounts on each birthday starting on his 30th birthday and ending on his
60th birthday. John wants to have $2 million at age 60. If the investment funds earn 10% per year, calculate the
amounts the Bill and John respectively will have to save each year (rounded to the nearest dollar) to meet their
goals. Comment on the difference.
Bill will need to make deposits of $4,519 per year, while John will need to make deposits of $10,992 per year. These
amounts are based on the future value of the annuity in each case of $2,000,000, N = 40 for Bill and N = 31 for John,
with I = 10%. The difference illustrates the importance of compounding and the need to begin saving early. John's
annual deposits are more than twice Bill's deposits, even though the number of years is only 9 fewer, or less than 25%
less.
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A. 2 million B. an all-time low C. almost 40 million D. 12 million
Sao Paulo Trains Inc, incorporated in Brazil, manufactures high-speed trains. In this industry, the time to manufacture products usually exceeds one year. Assume that Sao Paulo Trains recently signed a €8 billion contract to provide 10 new high-speed trains to a customer in the European Union. The customer has paid a deposit of €500 million and will pay the remainder in equal installments
over the next four years. When should Sao Paulo Trains recognize the revenue from this contract? a. at the time Sao Paulo Trains signs the contract and receives €500 million cash from the customer b. assuming that Sao Paulo Trains can reliably estimate both the revenue from the contract and the costs to complete the contract, it will recognize revenue (as well as the costs associated with delivering on the contract) over the contract life. c. Sao Paulo Trains will recognize all of the revenue (as well as all of the costs associated with delivering on the contract) at the completion of the contract d. at the time Sao Paulo Trains signs the contract and receives the cash payments from the customer e. none of the above
Which of the following acts is seen as conclusive proof for the existence of a corporation?
A) creation of the promoter's contracts B) filing the articles of incorporation C) acquiring a domain name for the corporation D) selecting a state for incorporation
Average retail stockout rates are approximately?
a. 2% b. 8% c. 15% d. 20%