Number of years taken by Person A and Person L to become millionaires if both earn the same return. Financial Goal: Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

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Answer 1

Question

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

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An employee contributes $15,000 to a 401(k) plan each year, and the company matches 10 percent of this annually, or $1,500. The employee can allocate the contributions among equities (earning 12 percent annually), bonds (earning 5 percent annually), and money market securities (earning 3 percent annually). The employee expects to work at the company 20 years. The employee can contribute annually along one of the three following patterns: Equities Bonds Option 1 60% Option 2 Option 3 50% 40% 40 45 50 Money market securities 0 100% 5 100% 10 100% Calculate the terminal value of the 401(k) plan for each of the 3 options, assuming all returns and contributions remain constant over the 20 years. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. (e.g., 32) × Answer is complete but not entirely correct. Option 1 Option 2 $ 915,588 X $ 100,785 x Option 3 $ 88,548 x

Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Duncan ships the supplies upon demand.The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. marketare relatively high.a) Duncan Company plans to penetrate either the Canadian market or two other Caribbean Countries (Jamaica and Haiti). What factors deserve to be considered in deciding which market is more feasible? I NEED PROPER REFERENCES IN THE ANSWER AND A VERY DETAILED AND RESEARCH ANSWER.

Answer 2

Question

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

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Answer 3

Question

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 6

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 7

Chapter 5, Problem 30P

a.

Summary Introduction

To calculate: Number of years taken by Person A and Person L to become millionaires if both earn the same return.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 8

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 9

b.

Summary Introduction

To calculate: Person A’s contribution to become millionaire at the same age of Person L.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 10

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 11

c.

Summary Introduction

To explain: Whether it is rational or irrational for Person A to invest in the bond fund rather than in stocks.

Financial Goal:

Financial goal is a money based target which a person wants to achieve by the certain age. It requires making plan for reducing debt, creating enough wealth to have at the time of retirement and reducing the amount of tax.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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