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lisov135 [29]
3 years ago
12

Dan Weaver wants to set up a fund to pay for his daughter's education. In order to pay her expenses, he will need $20,000 in fou

r years, $21,100 in five years, $22,900 in six years, and $24,300 in seven years. If he can put money into a fund that pays 6% interest, what lump-sum payment must Dan place in the fund today to meet his college funding goals? Round the answer to the nearest cent. Round PV-factor to three decimal places. $
Business
1 answer:
Mrrafil [7]3 years ago
5 0

Answer:

$63,913.50

Explanation:

We are to find the present value of the cash flows from year 4 to 7

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 3 = $0

Cash flow in year 4 = $20,000

Cash flow in year 5 = $21,100

Cash flow in year 6 = $22,900

Cash flow in year 7 = $24,300

I = 6%

Present value = $63,913.50

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called afixed-rate
marta [7]

Answer:

Indenture

Deferred call provision

Explanation:

Indenture is defined as the contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds.

A call provision is defined as the right that the issuer of a security has to call or redeem the security at certain times and under specific conditions.

The call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue is called deferred call provision.

8 0
3 years ago
_____ is the method of determining what a business will get in exchange for its products.
Arada [10]

Answer:

pricing

Explanation:

pricing is the amount you pay a buissness for their product.

3 0
3 years ago
Read 2 more answers
member of the production team skilled in research and analysis, who helps actors, designers, and directors better understand the
monitta

Answer:

Dramaturg

Explanation:

Dramaturg is the term which is defined as the editor or the literary adviser in the film company, theatre or opera, who researches, texts, selects, interprets scripts and printed programmes, does the public relations work.

So, in this case, the member of the production team who helps the directors, actors as well designers to better understand the specifications of the play is referred to the Dramaturg.

4 0
3 years ago
If your parents withdraw $125,000 from a money market deposit account so they can put a down payment on a house,
Contact [7]

Answer:

M2 decreases and M1 increases.

Explanation:

M1 and M2 are measures of money.

M1 is the narrowest definition of money. It includes currency, travellers check, demand deposit and other checkable deposits.

M2 includes M1 , small denomination time deposit, money market deposit and other assets that can easily be changed into cash easily and at a very little cost.

M3 includes M2, large domination time deposit and less liquid assets.

If $125,000 is withdrawn from the money market funds ,m2 reduces because money market fund is a component of m2.

M1 increases because $125,000 is converted to cash.

I hope my answer helps you.

4 0
3 years ago
PB8.
Maurinko [17]

Answer:

Products         Selling price   Unit variable cost

                                $                       $

Junior                     50                      15

Adult                       75                      25

Expert                     <u>110 </u>                   <u> 60</u>

Total                      <u> 235 </u>                  <u> 100</u>

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost  

= $235 - $100

= $135

Break-even point in units

= <u>Fixed cost</u>

  Contribution per unit

= <u>$114,750</u>

  $135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

                     Income Statement    

                                                               $

Total contribution ($135 x 850 units)   114,750

Less: Fixed cost                                     <u>114,750</u>

Net profit                                                   <u> 0</u>

                                                                                                                                                                             

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

4 0
3 years ago
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