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xxTIMURxx [149]
3 years ago
14

Your cousin is currently 11 years old. She will be going to college in 7 years. Your aunt and uncle would like to have $ 95 comm

a 000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3.9 % per​ year, how much money do they need to put into the account today to ensure that they will have $ 95 comma 000 in 7 ​years?
Business
1 answer:
zalisa [80]3 years ago
5 0

Answer:

$72,679.976

Explanation:

The computation of present value is shown below:-

Present value = Future value ÷ (1 + Rate of return)^Number of years

= $95,000 ÷ (1 + 3.9%)^7

= $95,000 ÷ (1 + 0.039)^7

= $95,000 ÷ (1.039)^7

= $95,000 ÷ 1.307100055

= $72,679.97553

or

= $72,679.976

Therefore for computing the present value we simply applied the above formula.

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Use the following to prepare the cash budget. What is the ending cash balance? Beginning cash balance $3,000; Cash receipts $50,
aleksley [76]

Answer:

 Ending cash balance = $13,000

Explanation:

<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>

With help of a cash budget, a business can plan ahead for  the usage of its surplus funds and how to finance its deficit cash position

Ending cash balance = Beginning cash balance + cash receipts - cash payment

             = 3,000 + 50,000 - 40,000

 Ending cash balance = $13,000

7 0
3 years ago
Richard has $500.00 to invest, but he is willing to borrow money to increase the size of his investment. How much should Richard
liubo4ka [24]

Answer:

c. $125.00

Explanation:

Let us assume the x for invested in portfolio

Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return

x × 7% + (1 - x) × 3% = 8%

7% x + 3% - 3% x = 8%

4% x = 5%

X = 1.25

Now the invested amount would be

= 1.25 × $500

= $625

So, the borrowed amount would be

= $625 - $500

= $125

8 0
3 years ago
Which is NOT an advantage of a mutual fund?
denpristay [2]

Answer:

I think D. If I'm wrong I'm sorry

7 0
3 years ago
New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by a. the po
mylen [45]

Answer:

New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by

b. imperfect information and efficiency wages.

Explanation:

The assumption in macroeconomic theories is that economic agents, households, and companies exercise rational expectations.  The New Keynesian economics posits that rational expectations have become distorted as a result of market failure, arising from asymmetric information and imperfect competition, thus questioning the ability of markets to self-regulate and self-correct.

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3 years ago
Why is business plan necessary?​
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Answer:

Business plan necessary because:

•It make you aware of your strength or weakness.

•It also creates an effective strategy for growth.

•It helps to determine your future financial needs.

•It also helps to gain a deep understanding of your market.

7 0
2 years ago
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