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Alexxx [7]
3 years ago
8

You had your first child recently. You would like to set aside some funds so that your child will be able to attend the Universi

ty of Texas as an undergraduate without taking on any student loans. Total costs of attendance for undergraduate students currently amount to $28,000 per year and are expected to continue to grow at a 2.5% growth rate per year. Assume that the four-year college expenses for the first year of college need to be paid exactly 18 years from today and that the subsequent costs need to be paid at an annual frequency 19, 20, and 21 years from today. You would like to make 18 equal annual payments starting today to your child’s college savings account to be able to cover the expected college costs. The savings are invested in risk-free Treasury securities that offer a return of 2%. How large are the equal annual contributions to the college savings account over the next 18 years?
Business
1 answer:
gayaneshka [121]3 years ago
3 0

Answer:

Equal annual contributions to the college savings account over the next 18 years is : $4,745.6

Explanation:

Suppose the time the child was born is the Beginning of Year 0 (Y0). So, 18 equal contributions need to be made at the beginning of each year from Y0 to Year 17. Denote these cash flow as Annuity 1 which equal: ( C/ 2%) x ( 1.02^18 -1) = 21.4123 x C with C is the equal annual contribution

The tuition fee starting from the beginning of Year 18 end at the Beginning of Year 21 is a growing annuity at 2.5% growth rate. The Value of this annuity ( Annuity 2) discounted to the Beginning of Year 17 calculated as followed:

(28,000 / (2% - 2.5% ) x ( 1 - [( 1+2.5%)/(1+2%)]^4 ) = $110,614

To save enough for college fee, The future value of Annuity 2 must equal the present value of Annuity 2 calculated above.

Thus, we have: 21.4123 x C = 110,614 <=> C = $4,745.6

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Zina [86]

Answer:

Total work in process = $12,900

Explanation:

Provided information,

Cost incurred during the month on this order

Direct Materials = $2,100

Direct Labor = $3,600

Provided overheads are 200% of the direct labor cost = $3,600 \times 200% = $7,200

Thus month end balance of work in process = $2,100 + $3,600 + $7,200

Total work in process = $12,900

Note: additional information regarding expenses to be incurred is to be ignored, and the above value is the value of work in process.

Total work in process = $12,900

7 0
3 years ago
An owner of a corporation is known as a ___________ Group of answer choices limited partner general partner director stockholder
inessss [21]

Answer:

Stockholder.

Explanation:

A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.

Some examples of multinational firms are Ap-ple, Volkswagen, G-oogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.

Hence, an owner of a corporation is known as a stockholder.

5 0
3 years ago
RL Enterprises places a $750,000 short-term liability in the long-term liability section of its financial statements. It then in
Valentin [98]

Answer:

RL intends to and has demonstrated the ability to refinance the short term liability on a long term basis.

Explanation:

First of all, RL intends to refinance the short term liability but has not completed the process yet. What it is showing in the balance sheet is that they have the intention to do it, and that they have already negotiated with their debtors the refinancing procedure, but the procedure is not over yet. Refinancing a debt sometimes may take a long time specially due to legal paperwork (e.g. register an asset as collateral), but RL is showing that the process has already been agreed upon with the creditors and all they need is time to finish it.

5 0
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Which of the following is true?a. Currently, the food and fiber sector accounts for about 12% to 15% of gross domestic product (
svetlana [45]

Answer:

b. Off-farm income is important to agricultural producers today.

c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry.

Explanation:

The food and fiber industry is divided into 4 main sectors:

  1. suppliers of farm inputs (including services and materials)
  2. farmers themselves (producers)
  3. processing and manufacturing of farm and fiber products
  4. marketing and distribution (wholesalers and retailers)

In the US, the food and fiber industry represents approximately 5.4% of GDP. It employs roughly around 21 million workers (including direct and indirect employment). The food and fiber industry is a net exporter, since it exports more than it imports. Currently, most farming value is concentrated on large farms, where smaller farms generally produce more livestock output while larger farms produce crops.

After WW2, there has been a tendency to substitute labor for capital, and to have more larger farms and less smaller ones.

4 0
3 years ago
Explain the importance of technical education providing organization in nepal. plz say simple and correct answer. ​
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Most important education systems for employment generation. With vocational and soft skills, people can enhance their competency, thereby increasing their chances of securing a job.

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