1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
djyliett [7]
3 years ago
15

Assume that your parents wanted to have $ 130,000 saved for college by your 18th birthday and they started saving on your first

birthday. They saved the same amount each year on your birthday and earned 5.5 % per year on their investments.
(a) How much would they have to save each year to reach their​ goal?
(b) If they think you will take five years instead of four to graduate and decide to have $ 170,000 saved just in​ case, how much would they have to save each year to reach their new​ goal?
Business
1 answer:
Paraphin [41]3 years ago
4 0

Answer:

A) $4,409.8

B) $5,766.6

Explanation:

A)

To answer the first question, we must use the future value of an ordinary annuity formula:

FV = A ((1+i)^{n} -1)/i

Where:

FV = Future value of the investment

A = Value of annuity

i = Interest rate

n = number of compounded periods

Now we simply plug the amounts into the formula:

130,000 = A ((1 + 0.055)^18-1) / 0.055

130,000 = A (29.48)

130,000 / 29.48 = A

$4,409.8 = A

Therefore, the parents would have to add $4,409.8 dollars each year to the college fund.

B)

To answer the second question, we use the same formula, only the values change:

170,000 = A ((1 + 0.055)^18-1) / 0.055

170,000 = A (29.48)

170,000 / 29.48 = A

$5,766.6 = A

Therefore, to have $170,000 saved by the 18th year, the parents would have to add $5,766.6 per year to the fund.

You might be interested in
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0
3 years ago
Lily operates a gift shop and has a lot of inventory to manage. She counts inventory once every 4 weeks. Preparing and placing o
soldi70 [24.7K]

Answer:

12 weeks

Explanation:

The computation of the needs period is shown below":

= Number of weeks inventory counts once + number of order cycles takes + number of the week taken for arrive

= 4 weeks + 2 weeks + 6 weeks

= 12 weeks

We simply added the total number of weeks that is mentioned in the question so that the needs period could be computed

4 0
3 years ago
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products
levacccp [35]

Answer:Please refer to Explanation

Explanation:

Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.

Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.

If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.

If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.

The formula is,

=  % change in Quantity Demanded of Product A /% change in Price of Product B

a. Splishy splashies and Flopsicles

CPSD = -18%/-1%

= 18%

The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>

b. Splishy Splashies and Flopsicles

CPSD = 3%/-1%

= -3%

With the CPSD being a negative figure here, these goods are Compliments.

Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.

5 0
3 years ago
What suggestion does the author make about her main characters' future at
anastassius [24]

Answer:

D

Explanation:

They have more freedom now that their father is dead, but they are

not strong enough to act on it.

4 0
3 years ago
Are you going to get Paramount plus?
Andrew [12]
An waste of money you can get better stuff
4 0
2 years ago
Read 2 more answers
Other questions:
  • Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th
    5·1 answer
  • Fern wants to work with a group of experts to find the best solution for a quality assurance problem with her company's new prod
    5·1 answer
  • What is meant by centralised direction?
    7·1 answer
  • This graph shows the US unemployment rate from Aug 2010 to Nov 2011... what question could best help the economist answer
    6·1 answer
  • In 2019, Alliant Corporation acquired Centerpoint Inc. for $352 million, of which $62 million was allocated to goodwill. At the
    14·1 answer
  • Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that w
    15·1 answer
  • Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
    11·1 answer
  • -My shopfront or roller shutter has been damaged, do you deal with insurance companies?
    7·1 answer
  • The journal entry for an installment note payment includes all except:__________.
    7·1 answer
  • ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00. What is ABC
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!