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mihalych1998 [28]
4 years ago
12

Samuel's Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 9.00% so that

his first-year college tuition costs are provided for. Currently, the average college tuition cost is $12,000 and is expected to increase by 3.00% per year (the average inflation rate). Samuel just turned 3 and is expected to start college when he turns 18. How much money will Samuel's Dad have to deposit into the account
Business
1 answer:
Dmitry_Shevchenko [17]4 years ago
5 0

Answer: $5,132.66

Explanation:

If the current tuition costs are $12,000 but increasing at a rate of 3% every year, the cost of tuition in first year when Samuel will be 18 is;

= 12,000 * ( 1 + r) ^ n

= 12,000 * (1 + 3%) ^ (18 - 3)

= $18,695.61

Assuming that the account will pay 9% per year on an investment now, Samuels's Dad will have to pay the present value of the tuition fee discounted at 9%.

= 18,695.61 / ( 1 + 9%) ^ 15

= $5,132.66

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4 0
3 years ago
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Icy Mocha Company estimates its factory overhead costs to be $35,000 and machine hours to be 5,000 for the year. If the actual h
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Answer:

d) overapplied $160

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

$35,000 expected overhead / 5,000 machine= 7 dollar per machine hour are spend on overhead

<em><u>applied overhead:</u></em>

4,980 x 7 = 34,860

<u><em>actual overehad:</em></u> 34,700

As the amount of cost enter by the accounting are above the real cost, we are going to increase the manufacturing overhead cost and making the net income lower for this particular reason.

7 0
3 years ago
Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of .7 and an
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Portfolio A and Portfolio B

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The Market rate of return - Risk-free rate of return) = Market risk premium

Let us assume the market risk premium be X

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So, the X = 10%

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3 years ago
By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 perce
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Answer:

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given data

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solution

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and Accumulated equity indicate the demand for housing in the country

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7 0
3 years ago
Identify each account as asset​ (a), liability​ (l), or equity​ (e).
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Identify each account as Asset (A), Liability (L), or Equity (E)

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<span> </span>

4 0
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