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scoundrel [369]
3 years ago
6

You anticipate having to pay $30,000 per year for your child’s college education starting 10 years from now. You plan to finance

four years of college by making quarterly deposits in a savings account starting now. The final deposit is made three months prior to the first college payment, for a total of 40 deposits. Each annual college payment is made in full at the beginning of the school year. If the savings account earns 8% per annum convertible quarterly, what should your quarterly deposit be?
Business
1 answer:
SIZIF [17.4K]3 years ago
4 0

Answer:

$1,741.81

Explanation:

we must first determine the total cost of college using the present value of an annuity due:

present value = $30,000 x 3.5771 (PV factor annuity due, 8%, 4 periods) = $107,313

to find the quarterly payment we can use the following formula:

future value of an annuity due = quarterly payment x FV annuity factor (2%, 40 periods)

  • future value of annuity due = $107,313
  • FV annuity factor (2%, 40 periods) = 61.61002

$107,313 = quarterly payment x 61.61002

quarterly payment = $107,313 / 61.61002 = $1,741.81

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ABC, Inc.'s income statement shows Service Revenue of $40,000, Wages Expense of $25,000 and Net Income of $1,000. The other expe
Temka [501]

Answer:

A) $14,000.

Explanation:

In the profit or loss statement, the key elements are sales and expenses and the net of these two gives the net income.

Given

Service Revenue = $40,000,

Wages Expense = $25,000

Net Income = $1,000

Total expense = $40,000 - $1,000 = $39,000

The total expense is made of the wage expense and other expenses.

Therefore, other expenses = $39,000 - $25,000

= $14,000

3 0
3 years ago
Updating procedures and systems, reinforcing marketing strategies, and updating advertising techniques, are all examples of what
Travka [436]

An operational change is an exchange inside the structure of your corporation. That could be a reorganization, layoffs, or just a group alternate daily a strategic or task declaration trade. Operational changes are a number of the roughest in your personnel due to the fact they by no means quite understand daily.

Change is basically a variation within the common manner of doing things. every time people carry out a venture in a sure way, they get accustomed to them. They expand strategies which they could put into effect mechanically every day to reap those tasks. Any variation in those strategies is not anything however change.

An alternate is a venture, initiative, or solution being added to the agency to improve the manner work gets accomplished, clear up a problem, or take benefit of a possibility. Almost any project, initiative, or solution that improves a company will affect how employees do their work.

Learn more about the corporation here: brainly.com/question/24448358

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8 0
1 year ago
Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund inv
balu736 [363]

Answer:

8.66%

Explanation:

The computation of the rate of return for the investor in the fund is as follows:

= (Net assets at the end  + dividend per share  - nav at the beginning of the year) ÷ (nav at the beginning of the year)

where,

Net assets at the end is

= $203 million + $203 million × 7% - ($217.21 million × 0.75%)

= $203 million + $14.21 million - $1.6291 million

= $217.21 million - $1.6291 million

= $215.58093 million

Dividend per share is

= $5 million ÷ 10 million shares

= 0.5

Nav at the beginning of the year is

= $203 million ÷ 10 million shares

= $20.3

Now the rate of return is

= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)

= 8.66%

6 0
2 years ago
When several alternative investment proposals of the same amount are being considered, the one with the largest net present valu
Likurg_2 [28]

Answer:

The answer is c. present value index

Explanation:

Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.

Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.

The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.

4 0
3 years ago
The table shows human development indicators from 2013. Which best describes the relationship between education and life expecta
VladimirAG [237]
A. More education can help increase life expectancy. :)
4 0
3 years ago
Read 2 more answers
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