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mihalych1998 [28]
3 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]3 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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Sheridan Company received $135000 in cash and a used computer with a fair value of $318000 from Carla Vista Co. for Sheridan Com
sammy [17]

Answer:

The gain that  Sheridan should recognize on this exchange is $135000

Explanation:

Where Exchange Transaction lacks commercial substance, the asset that is acquired is measured at the <em>Carrying Amount or Undepreciated Cost </em> of the asset given up.

The gain will then include an <em>further consideration acquired</em> on the exchange of an asset.

<u>Entries to record the exchange are as follows :</u>

Cash $135000 (debit)

New Asset at undepreciated cost $420300 (debit)

Cost of Old asset given up $420300 (credit)

Gain on exchange $135000 (credit)

Conclusion :

The gain that  Sheridan should recognize on this exchange is $135000

6 0
3 years ago
According to arnold and bustos, which two sectors of the US economy are the mot carbon-intensive?
Stels [109]

Answer: Transportation and electricity generation

Explanation:

According to Arnold and Bustos, the two sectors of the United States economy that are the most carbon-intensive are the transportation sector and the electricity generation sector.

The transportation sector contributes a lot to the emissions of greenhouse gas emissions as they typically come when fossil fuel for ships, vans, planes, motorcycles, cars etc are burned. Also, the generation of electricity is also carbon intensive as carbon is being powered in order to generate electricity.

7 0
2 years ago
For a binomial experiment with r successes out of n trials, what value do we use as a point estimate for the probability of succ
trapecia [35]

Answer: \dfrac{r}{n}

Explanation:

If r is the number of successes out of n trials , then the sample proportion of success = \hat{p}=\dfrac{r}{n}

For binomial experiment , if the population probability of success p on a single trial is not given , then the best point estimate for probability of success p on a single trial is the sample proportion of successes.

i.e. a point estimate for the probability of success p on a single trial :

p=\hat{p}=\dfrac{r}{n}

Hence, a point estimate for the probability of success p on a single trial = \dfrac{r}{n}

4 0
3 years ago
You are an accountant working for Hotel Co. Your supervisor has asked you to research what amount of revenue Hotel Co. should re
Sonja [21]

Answer:

Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.

Explanation:

The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost.  This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for.  This will enable comparison with another hotel that does not use Expedia for its collection, for example.

5 0
3 years ago
A firm has the following gross requirements for Item OF. Ordering costs are $60 per order and carrying costs are $0.50 per perio
aleksley [76]

Answer:

c. 120

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The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:

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5 0
3 years ago
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