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3 years ago

Which of the following is a tax-advantaged savings plan designed to encourage savings for future college costs?

Business

2 answers:

Artist 52 [7]3 years ago

6 0

a 529 plan is the answer

BlackZzzverrR [31]3 years ago

3 0

A. 529 Plan

A 529 Plan is a tax-advantaged savings plan organized under Section 529 of the Internal Revenue Code to provide funds to grow tax-free in an account for future college costs. This allows families and friends to save for a college students' costs and allow the funds to grow tax-free for the future.

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Regina finds a new car costing $25,000 and a used car costing $17,000. Which car will have higher insurance premiums and why?

GaryK [48]

The used car will have higher insurance premiums because there is a higher chance that it will malfunction and that they will have to pay for your expenses. A new car is cheaper when it comes to premiums because it is expected to last and the insurance companies are safer in this regard.

3 0

3 years ago

A lender estimates that the closing costs on a $293,600 home loan will be $11,010. the actual closing costs were 3.25% of the lo

mestny [16]

The closing cost of the house mortgage is lower than the envisioned by 0.5%.

<h3>What is the closing cost?</h3>

Closing expenses are the prices over and above the property's rate that consumers and dealers generally incur to finish an actual property transaction.

Those expenses may also encompass mortgage origination fees, cut price points, appraisal fees, name searches, name insurance, surveys, taxes, deed recording fees, and credit score file charges.

The lender is required by regulation to expose those expenses in the form of a mortgage estimate within 3 days of a domestic mortgage application.

Gifts of equity (actual property income given to a relative or close pal at a below-marketplace rate) can also incur a few closing cost.

So, from the above announcement, it's clear that alternative D, decreasing by 0.5%, is an appropriate answer.

Learn more about closing cost, refer to:

brainly.com/question/1084194

4 0

3 years ago

Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from t

Snezhnost [94]

Answer:

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

The interest rate implicit in the agreement can be determined by finding the internal rate of return.

Cash flow in year 0 = $-196,401

Cash flow each year from year 1 to 7 = $33,942

IRR = 5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

5 0

3 years ago

How are prices determined in a free market economy

professor190 [17]

If it’s free then I don’t think they need to determine the price bc it’s free

5 0

3 years ago

A simple, direct space heating system is currently being used in a professional medical office complex. An upgraded "variable ai

Ivan

Answer:

Since the present worth (PW) is $56,459.65 and positive, the new system should be purchased.

Explanation:

C = Cost of the upgraded "variable air-volume system" retrofit = $200,000

S = Residual value of the system = $20,000

n = Estimated life of the upgraded "variable air-volume system" retrofit = 8

r = cost of capital per year = 12%, or 0.12

P = Amount of power savings per year = Number of kilo-Watt hours per year * Cost of electricity per kilo-Watt hour = 500,000 * $0.10 = $50,000

Using the formula for calculating the present value (PV) or ordinary annuity, the PV of P can be calculated:

PV of P = P * ((1- (1/(1 + r))^n) / r) = $50,000 * ((1- (1/(1 + 0.12))^8) / 0.12) = $248,381.99

The PV of the residual value (PV of S) can be calculated as follows:

PV of S = S / (1 + r)^n = $20,000 / (1 + 0.12)^8 = $8,077.66

The present worth (PW) can now be calculated as follows:

PW = PV of P + PV of S - C = $248,381.99 + $8,077.66 - $200,000 = $56,459.65

Since the present worth (PW) is $56,459.65 and positive, the new system should be purchased.

4 0

3 years ago