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VARVARA [1.3K]
3 years ago
8

Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for

their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 9%. The parents deposit $2400 on their daughter's first birthday and plan to increase the size of their deposits by 7% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to ________.
Business
1 answer:
Helen [10]3 years ago
6 0

Answer:

$160,463 will be available for daughter college expense o her 18th birthday.

Explanation:

According to the Given Condition;

Deposit Amount = $2,400

Rate of Return = 9%

Size of Deposit increase every year at 7%

Hence the Growing Annuity is

Annuity = 2400 * \frac{1}{0.09 - 0.07} * [1 - (\frac{1+0.07}{1+0.09})^{18} ] (1.09)^{18}

Annuity = $160,463

Thus,  $160,463 will be available for daughter college expense o her 18th birthday.

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A software developer enters into a contract with a new customer to sell a software license and perform installation services. Th
Troyanec [42]

Answer:

A. Three performance obligations: 1. software license 2. installation support 3. technical support services

Explanation:

Under the ASU 2014-09, the obligations of the software developer includes software licensing, installation support as well as technical support services.

This is necessary because the software being developed is peculiar to the company that the software is being made for and as such would require that the software gets licensed by the appropriate council or board, assist with installing the software until personnel have been trained and/or contract expires and also provide support services for the software should it run into any problem while in use.

Cheers

3 0
3 years ago
A company has a total amount of 15 hours for one specific resource. The upper limit of this resource is 18 (the right-hand side
Greeley [361]

Answer: A. the company will be willing to pay a different amount for this resource.

Explanation:

The upper limit for the resource was 18 and anything up to 18 would have attracted the same shadow price (price company estimated it was willing to pay for access to this resource).

The access was increased past this limit however to 18.01. The company therefore will now have more access to the resource and so will be willing to pay a different amount for the resource.

4 0
3 years ago
A consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovat
Sholpan [36]

Answer:

FALSE.

Explanation:

When a consumer products company produces inexpensive goods in underdeveloped markets, then repackages them as cost-effective innovations for Western buyers. This is not an example of glocalization because glocalization is the term which is the combination of two terms; localization and globalization. In glocalization, global products are offered to the customers with the local modifications. For example, Pizza Hut has launched Tikka Pizza, Behari Pizza and Achari Pizza in India and Pakistan, which is the perfect example of glocalization. Putting it simply we can say that "thinking globally and acting locally."

3 0
3 years ago
Maria spends all of her money on paperback novels and beignets. In 2011 she earned $27.00 per hour, the price of a paperback nov
marishachu [46]

Answer:

1.  The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011.

2. The price of a paperback novel is 3 beignets in 2011 and Maria's wage is 9 beignets per hour in 2011.

3. 3 Beignets

4. increases and remains the same

Explanation:

1.  Nominal value is the value of a product based on the money of the day that we see. The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011 are the values of the product and wage quoting the money of the day.

2. The real value of a varaible is the value in terms of the value of some other goods. In this case Paperback and Maria's wage are valued in terms of beignets.

3. The relative price of paperback is valued in terms of beignets. So if a beignet costs $6 and a paperback novel is $18. The relative price of a paperback novel will be three times the cost of beignet, since a beignet costs $6.

4. Between 2011 and 2016, the nominal value of Maria's wage increases and the real value of her wage remains the same.

6 0
3 years ago
What aspects of managing your account were probably more difficult before online banking was available?
sveticcg [70]

Answer:

One of the main advantages of online banking is that you can access information about your account immediately and from anywhere. Before online accounts were available, you had to go to a bank or ATM on some specific cases if you wanted to carry out any type of transaction, e.g. pay a service or transfer money. Online accounts make it less likely for a person to go to a bank, e.g. in order to get a loan, I did it all online, I didn't even need to go to the bank.

5 0
3 years ago
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