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
mote1985 [20]
3 years ago
8

Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for

their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 7%. The parents deposit $2000 on their daughter's first birthday and plan to increase the size of their deposits by 5% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to:A) $42,825B) $97,331C) $67,998D) $103,063
Business
1 answer:
tankabanditka [31]3 years ago
5 0

Answer:

$97,331.30

Explanation:

To calculate the amount available on the daughter's 18th birthday the following should be taken into cognisance

First, the yearly deposit increases by 5% every year, therefore year one is $2,000 but year 2 is $2,000 x1.05= $2,100 and continuing like that.

Secondly, the total deposit pre year is calculated as annual deposit for the year (1+interest rate)∧year on a descending basis.

It is therefore as follows;

Years Annual deposit    Total value of deposit including interest

1           $2,000.00            $2,000(1+0.07)∧17= $6,317.63

2           $2,100.00            $2,100(1+0.07)∧16= $6,199.54

3           $2,205.00            $2,205(1+0.07)∧15=$6,083.66

4           $2,315.25            $2,315.25(1+0.07)∧14=$5,969.95

5           $2,431.01            $2,431.01(1+0.07)∧13=$5,858.36

6           $2,552.56            $2,552.56(1+0.07)∧12=$5,748.86

7           $2,680.19            $2,680.19(1+0.07)∧11=$5,641.41

8           $2,814.20            $2,814.20(1+0.07)∧10=$5,535.96

9           $2,954.91            $2,954.91(1+0.07)∧9=$5,432.48

10           $3,102.66            $3,102.66(1+0.07)∧8=$5,330.94

11           $3,257.79            $3,257.79(1+0.07)∧7=$5,231.30

12           $3,420.68            $3,420.68(1+0.07)∧6=$5,133.52

13            $3,591.71            $3,591.71(1+0.07)∧5=$5,037.56

14            $3,771.30            $3,771.30(1+0.07)∧4=$4,943.40

15            $3,959.86            $3,959.86(1+0.07)∧3=$4,851.00

16            $4,157.86            $4,157.86(1+0.07)∧2=$4,760.33

17            $4,365.75            $4,365.75(1+0.07)∧1=$4,671.35

18            $4,584.04            $4,584.04(1+0.07)∧0=$4,584.04

Total     $56,264.77                                                $97,331.30

You might be interested in
What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or
ololo11 [35]

ANSWER

Always state the facts pertaining to your speech.  

Always avoid stereotypes during a speech.  

Never bash or be bias.  

Remain objective.  

Have respect for the people and their values as well as beliefs .

Explanation:

8 0
3 years ago
It is reasonable for a company's management team to abandon efforts to win contracts to supply private-label footwear to chain r
mote1985 [20]

When the benchmarking data in the most recent FIR shows that the majority of sellers of Private-Label footwear had a margin over direct costs per pair sold that was below $5, It Is reasonable for a company's management team to abandon efforts to win Contracts to supply private-label footwear to chain retailers in a given year.

<h3>What is private label and private label retail?</h3>
  • A contract or third-party manufacturer creates a private label product, which is then marketed and sold by a retailer.
  • The retailer, decide everything about the product, including what goes inside.
  • How it is packaged, and how it looks on the label.
  • Also pay to have it made and shipped to your store.

To know more about Private label check this out:

brainly.com/question/28154878

#SPJ4

8 0
2 years ago
OSHA standards appear in the ___________ and are then broken down into ____________. A. Code of Federal Regulations (CFR), Parts
antiseptic1488 [7]

ignore the other person, the correct answer is A. code of Federal Regulations (CFR), parts

3 0
3 years ago
The systems viewpoint sees organizations as entities made up of four interrelated parts known as Group of answer choices inputs,
Reil [10]

Answer:

inputs, outputs, transformation processes, and feedback.

Explanation:

The viewpoint of the system that could see the organziation as the entities as they should be made of the input as the raw material, output as the finished product, transformation process as when the raw material is converted into the finished product and the feedback as the client feedback related to the product and service

So as per the given situation the above should be the answer

6 0
2 years ago
If the natural rate of unemployment is 5%, and the actual rate of unemployment is 4%: a the short-run Phillips curve will shift
fiasKO [112]

Answer: d. inflation will increase.

Explanation:

The Natural rate of unemployment is the long term rate of unemployment which means that it is the rate associated with the Potential GDP.

If the Actual unemployment is less than this natural rate, it means that the Economy is performing better than the potential GDP. When this is happening, it means that the economy is overheating.

One of the symptoms of an overheated economy is increased inflation as more people can afford to buy goods and services. Inflation is therefore more probably rising in this economy.

3 0
2 years ago
Other questions:
  • Kathleen, a manager, is attempting to determine whether she has both the capability and the resources to produce one of several
    11·1 answer
  • Define what import substitution industrialization (ISI) is. Explain, in detail, how ISI may help economic development and give e
    14·1 answer
  • What commodity has the united states recently focused on producing domestically?
    14·2 answers
  • Economists have used the ultimatum game and the dictator game in experiments designed to determine whether consumers believe it
    14·1 answer
  • Incident resource information management systems are used to collect, update, and process data; track resources; and:
    6·1 answer
  • Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:_______
    15·1 answer
  • Schwiesow Corporation has provided the following information:_________. Cost per Unit Cost per PeriodDirect materials $ 7.05 Dir
    11·1 answer
  • In the context of SWOT analysis, marketers can identify strengths and weaknesses by focusing on:
    6·1 answer
  • Beginning raw materials inventory $ 15,200 Raw material purchases 60,000 Ending raw materials inventory 16,600 Beginning work in
    13·1 answer
  • Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avail
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!