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Igoryamba
2 years ago
6

Your younger sister is just starting high school, and 4 years from today she should be entering college. Your father plans to st

art a college fund for her, beginning today. He will invest $6,000 per year in a mutual fund, beginning today, and he expects to earn an annual return of 9%. What is the expected value of the college fund when your sister enters college
Business
1 answer:
Gre4nikov [31]2 years ago
3 0

Answer:

$29,908.26

Explanation:

The formula for calculating future value:

FV = P (1 + r) nm

FV = Future value  

P = Present value  

R = interest rate  

m = number of compounding

N = number of years  

Present value value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow from year 0 to 3 = 6000

I = 9%

PV = 21,187.77

FV = 21,187.77 X (1,09)^4

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Michael should have sued his boss before the law so that he could instead be compensated for the bad treatment and discrimination and also collect unemployment compensation in the event that the employment relationship is terminated.

6 0
3 years ago
On common size balance sheets, Company A's inventory is 8% and Company B's inventory is 14%. What do just these two percentages
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7 0
2 years ago
HELP ME PLEASE************
ratelena [41]

Answer:

The 1st one because I would want the product to be okay for me to use and not under pay for something that will harm me.

Explanation:

It is just plain facts!!!

6 0
2 years ago
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Hayleah is a california cpa practicing in california. to renew her license in active status, hayleah must to meet the basic requ
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7 0
2 years ago
You write one MBI July 127 call contract (equaling 100 shares) for a premium of $12. You hold the option until the expiration da
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Answer:

The answer is "$400"

Explanation:

The price value of the exercise:

= $127

The expiration date price value is:

= $135

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3 0
3 years ago
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