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
Soloha48 [4]
3 years ago
12

An individual is planning to set-up an education fund for her daughter. She plans to invest $7,700 annually at the end of each y

ear. She expects to withdraw money from the fund at the end of 9 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 9 years
Business
1 answer:
daser333 [38]3 years ago
4 0

Answer:

$96,154.20

Explanation:

We are to find the future value of the annuity

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1  

A = Amount

R = interest rate  

N = number of years

[(1.08)^9 - 1 ] / 0.08 = 12.487558

12.487558 x $7,700 = $96,154.20

You might be interested in
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be i
diamong [38]

Answer:

annual savings = future value / [(1 + r)ⁿ - 1 ] / n

annual savings = $3,000,000 / [(1 + 0.1)¹⁰ - 1 ] / 0.1

annual deposit = $188,236.18

Explanation:

this is an ordinary annuity

future value = $3,000,000

interest rate = 10%

periods = 10

using the future value of an annuity formula, annual deposit = future value / annuity factor

FV annuity factor, 10 periods, 10% = 15.937

annual deposit = $3,000,000 / 15.937 = $188,241.20

instead of using annuity factors, you can solve this equation:

annual deposit = future value / [(1 + r)ⁿ - 1 ] / n

annual deposit = $3,000,000 / [(1 + 0.1)¹⁰ - 1 ] / 0.1

annual deposit = $188,236.18

Both answers are very similar, the difference is only 0.00267%

8 0
3 years ago
The weighted average cost of capital for a company is least dependent upon the:_______. A) company's beta. B) coupon rate of the
vlada-n [284]

Answer:

E) standard deviation of the company's common stock

Explanation:

The weighted average cost of capital (WACC) is dependent on cost of equity and cost of debt. Cost of Equity depends on company's beta (CAPM Model), growth rate of dividends (constant growth dividend discount model), so option A and C are not the answer. Cost of debt depends on coupon rate (for yield) as well as marginal tax rate (for post tax cost of debt) so option B and D are incorrect. So, answer is E. Standard deviation is the least probable factor that may cause change in WACC.

4 0
3 years ago
Identify how planned investment will change in each scenario. Airwings, a commercial airline manufacturer, becomes optimistic ab
kari74 [83]

Answer:

See explaination for the details of the answer.

Explanation:

1) Increase

As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.

2) Decrease

Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.

3) Decrease

A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.

4) Decrease

A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.

7 0
3 years ago
What are some non-monetary costs of attempting to eliminate risks? loss of life loss of productivity loss of time.
NikAS [45]

Some non-monetary costs of attempting to eliminate risks a are  time costs, search costs, and psychological costs .

Non-Monetary cost is a cost which a buyer pays other than money, to acquire a thing.The non-monetary price of acquiring a product comprises the time spent looking for it and the risk taken that it will provide the desired benefits.    

 

Non-monetary costs are another type of sacrifice that customers feel when they purchase and use a service. When deciding whether to purchase a service or repurchase it, time costs, search costs, and psychological costs are frequently taken into consideration and may occasionally be more significant considerations than monetary price.

The psychological expenses associated with receiving these services are the most distressing non-monetary charges. Fear of rejection (bank loans), fear of not understanding (insurance), and worry of uncertainty (including fear of high cost) are all examples of fears.

To learn more about non-monetary costs here

brainly.com/question/1068495

#SPJ4

6 0
1 year ago
Which protects a peaceful political organization from having to report its membership to the government?
tigry1 [53]
<span>Right of association-Gradpoint</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • A taxpayer with qualified business income who is a patron of an agricultural cooperative will use what form to calculate the qua
    7·1 answer
  • What is an incentive to entice intoxicated guests to take public transit?
    15·1 answer
  • Nonverbal communication influences the way a message is received and functions in at least five different ways.
    9·1 answer
  • Suppose that there are significant costs associated with coordinating a subsidiary with the parent organization and assessing th
    8·2 answers
  • My company is Walt Disney. I’m suppose to record down the prices 2x a week so can u guys give me an example of how to calculate
    7·1 answer
  • The _____ section of a business plan should include ownership details.
    15·1 answer
  • Explain why monopoly is uncommon in the real world
    6·1 answer
  • Lower Equitorial and Upper Equitorial are the same except Lower Equitorial has a larger capital stock. Both countries undertake
    9·1 answer
  • Is a market where securities are bought and sold
    5·1 answer
  • Which of the following is an Internet job search “don’t”?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!