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OlgaM077 [116]
3 years ago
10

I want to have a college fund for my daughter. She is 5, so I have 13 years to achieve my goal of $50,000. The bank says I can e

arn 2%. I have $5000 already set aside. How much do I need to contribute every year?
Business
1 answer:
Tju [1.3M]3 years ago
3 0

Answer:

$2960 yearly savings

Explanation:

From the values given and from mathematical manipulation, he or she needs a contribution of at least $2900 every year in order to achieve his goal of $50,000.

                     EXPLANATION

  • If the child is 5yr old now, in 13years time, she will be 18yr old.
  • $2950 target yearly

  • for the next 13years, it would have amount to $38350

  • remember the bank will give an annual interest rate of 2%
  • so for 13years, that's 26% = 0.26

  • In the 13th year, he would have saved $38350, add the 26% interest for the duration of 13years = 26% x $38350 + $38350 = $48321

  • His savings will fall between $2950 - $2960 yearly.

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Answer:

$5,896,778

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2 years ago
On January 15, 2017, Vern purchased the rights to a mineral interest for $3,500,000. At that time it was estimated that the reco
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Explanation:

given data

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depletion rate = 22%

to find out

Vern's depletion deduction

solution

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depletion expense = \frac{cost - salvage\ value}{estimate\ no\ units} * number\ of\ unit\ extracted      ...........................1

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