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
Nimfa-mama [501]
3 years ago
9

You want to provide spending money for your 4 year old during their college years. You can afford to deposit $600/year for the n

ext 4 years (starting this year). You would like to give your child $4,000 per year for in their 18th, 19th, 20th, and 21st birthdays for a total of $16,000. Assuming 5% interest, what uniform annual investment will you have to make on the child's 8th through 17th birthdays to meet this goal
Business
1 answer:
umka2103 [35]3 years ago
8 0

Answer:

The Annual investment that you will to make will be $1,069.01

Explanation:

In order to calculate the uniform annual investment that will you have to make on the child's 8th through 17th birthdays to meet this goal, we have to make the following calculations:

First we need to calculate the Amount you have at the end of child's 8th year = 600*(1+0.05)^4 + 600*(1+0.05)^3 + 600*(1+0.05)^2 + 600*(1+0.05)^1 = $2,715.38

Therefore, Value of this amount at the end of 17th year = $2715.38 * (1+0.05)^9 = $4,212.45

So, Amount required to be saved = $16,000 - $4,212.45 = $11,787.55

Therefore, to calculate the annual investment we would have to use the following formula:

FV of annuity = P*[((1+r)^n - 1)/r]

P - Periodic payment =?

r - rate per period = 0.05

n - number of periods = 17-8 = 9

$11787.55 = P*(((1+0.05)^9 - 1)/0.05)

P = $11,787.55/11.03 = $1,069.01

The Annual investment that you will to make will be $1,069.01

You might be interested in
A __________ item is something that is purchased without much thought before the purchase.
mixas84 [53]

A convenience item is something that is purchased without much thought before the purchase.

Ads are called out if they are displayed for a short time without reaching the awareness threshold. subliminal. ---- is a subtle phenomenon that uses colors and fonts to influence how your message feels.

Customization and tailoring of service delivery to individual customer needs. The service should be less variable than the product. "Product" is a general term used to describe both goods and services.

Subliminal messages are visual or auditory stimuli imperceptible to the conscious mind, often inserted into television commercials or other media such as songs purchased.

Learn more about convenience items at

brainly.com/question/15104975

#SPJ4

6 0
2 years ago
Sandy borrows Mike’s car for weekend. The car gets a flat tire, so Sandy purchases a new one. Mike now owns the new tire. This m
daser333 [38]

Answer:

D. Accession

Explanation:

Mike gained the property through acession because Sandy's tire was attached to his car so he gained the tire.

7 0
3 years ago
You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a t-bill with a ra
kvasek [131]
<span>57% and 43%
I'm pretty sure that this is what you're looking for so if you need more help or want me to explain this more just ask!
- Just Peachy</span>
6 0
3 years ago
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have
tatyana61 [14]

Answer:

a.borrowers gain at the expense of lenders.

Explanation:

Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.

As inflation increases, two things happen

1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser

2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.

8 0
3 years ago
Speculator paid $25,000 net each for two 150 front-foot lots. Speculator split them into 3 lots with equal front footage. Specul
ankoles [38]

Answer:

The answer is 80%

Explanation:

Profit = revenue - cost of sales

         =[(50* 300) per 50 front-foot lot * 3 lots ] - 25000   *100

         =(45000-25000)/25000    *100

         <u>=80%</u>

5 0
3 years ago
Other questions:
  • In order to assure better management acceptance, the flow of input data for budgeting should begin with the
    9·1 answer
  • Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average
    14·1 answer
  • What is the maximum amount of money an individual can sue for in san diego small claims court?
    12·1 answer
  • Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. Its div
    15·1 answer
  • ou currently own $100,000 worth of Wal-Mart stock. Suppose that Wal-Mart has an expected return of 14% and a volatility of 23%.
    15·1 answer
  • Susan participates in a Section 403(b) plan at work that includes loan provisions. Susan has recently enrolled in college and ha
    5·1 answer
  • The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 8,
    9·1 answer
  • What is the purpose of capital controls?
    9·1 answer
  • Question 7 Suppose that Jaxon Corporation has three products: Red, Black, and White. Red has the highest contribution margin per
    9·1 answer
  • You earn $50,000 per year. Your entire income is taxed at the 10 percent federal tax bracket. Which value reflects what you will
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!