First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.
At age 18: 16,508
At age 19: 17,664
At age 20: 18,900
At age 21: 20,223
Then, we use this formula:
A = F { i/{[(1+i)^n] - 1}}
where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.
At age 18:
A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year
Ate age 19
A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year
At age 20:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year
At age 21:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year
Answer:
I can't figure it out sorry
<span>A situation in which machines and equipment do most of the work is known as a capital-intensive technology.
Two factor inputs are present in every production operation: labor and capital. The term labor includes the workers, employees and management, while capital refers to the </span><span>machinery, IT systems, buildings, vehicles, offices.
</span><span>Capital intensity is the amount of capital used in the production in relation to labor. </span><span>
If the production is made by more machines and technology than labor that the company uses </span><span>a capital-intensive technology.</span>
Answer:
FV = A(<u>(1 + r)</u>n - 1)
r
FV = 1,000(<u>(1+ 0.08</u>)3 - 1
0.08
FV = 1,000 x 3.2464
FV = $3,246.40
The correct answer is B
Explanation:
In this case, there is need to calculate the future value of an ordinary annuity for 3 years at 8% interest rate.