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xz_007 [3.2K]
3 years ago
11

Assume the total cost of a college education will be $245,000 when your child enters college in 15 years. You presently have $10

8,000 to invest for this purpose. What rate of interest must you earn to cover the cost of your child's college education
Business
1 answer:
Tems11 [23]3 years ago
8 0

Answer:

8.45%

Explanation:

The formula to calculate the rate of interest is:

r = (1/t)(A/P - 1), where

r= Rate of interest

t= Time period: 15 years

A= Accrued amount: 245,000

P= Principal amount: 108,000

Now, you can replace the values to find the rate of interest:

r= (1/15)((245,000/108,000)-1)

r= (0.0667)(2.2685-1)

r= (0.0667)(1.268)

r= 0.0845 → 8.45%

According to this, the answer is that the rate of interst that you must earn to cover the cost of you child's college education is 8.45%.

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"Which of the following are covered under the Securities Exchange Act of 1934? I Registration of new issues II Stabilization of
OleMash [197]

Answer: II. stabilization of new issues

III. registration of exchanges

IV. registration of broker-dealers

Explanation:

The Securities Exchange Act of 1934 was put in place in order to be in charge of security trading.

From the options, those that are covered under the Securities Exchange Act of 1934 include the stabilization of new issues, the registration of exchanges and the registration of broker/dealers.

It should be noted that the Securities Exchange Act of 1934 does not cover the registration of new issues.

6 0
3 years ago
Need help with number 10
lora16 [44]

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5 0
4 years ago
During the formation of a business, it is decided that an S-Corporation will be used. Of the following choices, which are key co
irina1246 [14]

Answer:

Protected assets:.

Pass-through taxation:

Tax-favorable characterization of income:

Straightforward transfer of ownership:

Cash method of accounting

Heightened Credibility:

Explanation:

The advantage S-Corporation have over all other forms of businesses is as follows:

Protected assets:. An S corporation protects the personal assets of its shareholders.

<em>Pass-through taxation</em>:An S corporation does not pay federal taxes at the corporate level. It is of benefit to businesses starting from inception

<em>Tax-favorable characterization of income</em>:S corporation shareholders can be employees and be paid as employees. They can also receive dividends from the corporation and distributions that are tax-free to the magnitude of their investment in the corporation

<em>Seemless transfer of ownership</em>: Ownership can be freely transferred to people legally

<em>Cash method of accounting</em>: They don't have to use the accrual method of accounting while other Corporations use that(except for small businesses)

<em>Heightened Credibility</em>: It helps to establish a strong credibility with business partners, employees, vendors

7 0
4 years ago
A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department.
VladimirAG [237]

Answer and Explanation:

The computation is shown below:

a. The break even quantity is

= Fixed cost ÷ (selling price per unit - variable cost per unit)

= $26,000 ÷ ($1 - 0.35)

= $26,000 ÷ 0.65

= 40,000

b. The price is

Let us assume the price per pen  be x

As we know that

Profit = Revenue - costs

$16,000 = (x)(41,000) - $26,000 - .35(41,000)

$16,000 = 41,000x - 40,350

$56,350 = 41,000x

x = $1.37

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3 years ago
Which is an example of a semi-skilled worker?
Verizon [17]
A lifeguard would be an example of one.<span />
7 0
3 years ago
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