A small business owner contributes $1000 at the end of eachquarter to a retirement account that earns 8% compoundedquarterly.
(a) How long will it be until the account is worth $150,000?(Round your answer UP to the nearest quarter.)
I'm coming up with 70.0055 but the answer isincorrect.
(b) Suppose when the account reaches $150,000, the business ownerincreases the contributions to $5000 at the end of each quarter.What will the total value of the account be after 15 more years?(Round your answer to the nearest dollar.)
$
A small business owner contributes $1000 at the end of eachquarter to a retirement account that earns 8% compoundedquarterly.
(a) How long will it be until the account is worth $150,000?(Round your answer UP to the nearest quarter.)
I'm coming up with 70.0055 but the answer isincorrect.
(b) Suppose when the account reaches $150,000, the business ownerincreases the contributions to $5000 at the end of each quarter.What will the total value of the account be after 15 more years?(Round your answer to the nearest dollar.)
$
Related questions
Natalie Lawson spent much of her youth playing sports. Shepassed many hours on the soccer field and in the dance studio. AsNatalie grew older, her passion for healthy living continued as shestarted practising yoga. Now, at the start of her second year incollege, Natalie is investigating various possibilities forstarting her own business as part of the requirements of theEntrepreneurship program she is taking. A long-time friend insiststhat Natalie has to somehow include healthy living in her businessplan and, after a series of brainstorming sessions, Natalie settleson the idea of operating a smoothie business. She will start on apart-time basis. She will make the product at home, bottle it, andtake it to the yoga studio where she exercises because they haveagreed to purchase it on a regular basis. Now that she has startedthinking about it, the possibilities seem endless. During thesummer, she will concentrate on fresh fruit and vegetablesmoothies. The first difficult decision is coming up with theperfect name for her business. In the end, she settles on âHealthySmoothiesâ and then moves on to more important issues.
During the month of April 2017, the following activities takeplace:
Apr. | 12 | Natalie cashes her Canada Savings Bonds and receives $980, whichshe deposits in her personal bank account. |
13 | She opens a bank account under the name âHealthy Smoothiesâ andtransfers $900 from her personal account to the new account. | |
15 | Natalie realizes that her initial cash investment is not enough.Her mother lends her $3,000 cash, for which Natalie signs aone-year, 3% note payable in the name of the business. Nataliedeposits the money in the business bank account. | |
18 | Natalie pays $325 to advertise in the April 20 issue of hercommunity newspaper. Natalie hopes that this ad will generaterevenue during the months of May and June. | |
20 | She buys supplies, such as protein powder, cups, straws, andfresh fruit and vegetables, for $198 cash. | |
22 | Natalie starts to investigate juicing machines for her business.She selects an excellent top-of-the-line juicer that costs $825.She pays for it using her own personal account. | |
23 | Natalie prepares her first batch of smoothies to bring to theyoga studio. At the end of the first day, Natalie leaves an invoicefor $300 with the studio owner. The owner says the invoice will bepaid sometime in May. | |
24 | A $98 invoice is received for the use of Natalie's cell phone.The cell phone is used exclusively for the Santé Smoothiesbusiness. The invoice is for services provided in April and is dueon April 30. | |
28 | The yoga studio where Natalie sold her first smoothies orderssmoothies for the next month. Natalie is thrilled! She receives$125 in advance as a down payment. |
PART 1: APRIL MONTH
Requirement 1: Natalie has hired youto be her bookkeeper. Prepare the required journalentries for the above events. Explanations are notrequired and round to the nearest dollar. (17 marks)
Requirement 2: Post the entries tothe general ledger using the t-account format. (9marks)
Requirement 3: Prepare theunadjusted trial balance as of July 31, 2013. (7 marks)
(6.5 marks)
