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mrs_skeptik [129]
3 years ago
12

Assume you have a brand new baby today. You plan to make 18 $1,000 annual deposits in her college savings account, starting on h

er 1st birthday (that is, at the end of her first year of existence) and concluding on her 18th birthday. If the account earns 9% per year, compounded annually, what will be the balance in her account after her 18th birthday?
Business
1 answer:
aleksley [76]3 years ago
7 0

Answer:

After her 18th birthday the balance will be $41,301

Explanation:

Balance right after the 18th birthday is calculated using the formula for future value of annuity

FV = PMT \times \frac{(1+i)^{n}-1}{i}

Annual payment PMT = 1,000

Interest rate i = 0.09

Deposits are made for 18 years: n = 18

The balance in her account will then be:

FV = 1,000 * ( 1.09^18 - 1 ) / 0.09

     = $41,301

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You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of
cluponka [151]

Answer:

$338,712

Explanation:

we must first calculate the monthly payment using the present value of an annuity formula:

present value = monthly payment x annuity factor

present value = $340,000

PV annuity factor, 0.529167%, 420 periods = 168.38268

monthly payment = $340,000 / 168.38268 = $2,019.21

Since the monthly payment was actually higher than $1,800, the balloon payment will be almost $340,000

I prepared an amortization schedule using an excel spreadsheet. During the first years, the principal is only decreasing by $1 each month

Download pdf
4 0
2 years ago
When we physically encounter a three-dimensional form, the tactile sensation we experience is its ________. Two-dimensional imag
babymother [125]

Answer:

When we physically encounter a three-dimensional form, the tactile sensation we experience is its <u>ACTUAL TEXTURE</u>. Two-dimensional images, however, have <u>IMPLIED TEXTURE</u>, which means the artist creates an effect that reminds us of our tactile memory of a real-life surface. Artists who wish to contradict our previous tactile experiences employ <u>SUBVERSIVE TEXTURE</u> in order to make us reconsider our preconceptions about the world around us.

Explanation:

Actual texture is combination of how an artwork looks and how it actually feels when someone touches it. Even paintings have texture and different artists use different painting techniques to create that texture.

Implied or simulated texture means that the artist is creating a visual effect of texture.

When artists use subversive textures, they are inventing textures by adding alternate materials.

3 0
2 years ago
Borrowed 152300 for three years if the qouted rate (apr) is 11.75% and the compounding is daily what is the effective annual rat
Vikki [24]

Answer:

The appropriate response is "12.47%".

Explanation:

The given values are:

Borrowed amount,

= 152300

APR,

= 11.75%

i.e.,

= 0.1175

Now,

The effective annual rate will be:

= (\frac{1+APR}{n} )^n

On substituting the given values, we get

= (\frac{1+0.1175}{365} )^{365}

= (\frac{1.1175}{365} )^{365}

= 1.12466-1

= 0.1247 \ or \ 12.47 \ percent

7 0
3 years ago
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she doe
Fynjy0 [20]

Answer:

b. an indicator of quality.

Explanation:

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as an indicator of quality.

Value-based pricing is a strategy of setting prices primarily <u>based on a consumer's perceived value of a product or service. </u>

<u>Price is an Indicator of Value From a consumer's standpoint because it is often used to indicate value when it is compared with perceived benefits such as the quality .</u>

3 0
2 years ago
What regulations or laws exist surrounding manufacturing, shipping, and use of plastic in a factory?
PIT_PIT [208]

Regulations exist according to the Green New Deal signed in the UN and applied rather loosely inside the country.

Explanation:

The green new deal is basically responsible for the laws that are being written over the use of plastic and its manufacture and shipping in the country due to the volatility of plastic products in the environmental sphere and how terribly they have been responsible for global warming.

The laws according to the Green New Deals regulate the making of plastic in function to its consumption, effect to the environment and the decay rate.

5 0
3 years ago
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