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Serjik [45]
3 years ago
5

Assume the total cost of a college education will be $184,061 when your child enters college in 19 years. You presently have $49

,327 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Enter answer as 3 decimal places (e.g. 0.123)
Business
1 answer:
Leni [432]3 years ago
4 0

Answer:

Interest rate = 0.9313

Explanation:

Future value or the cost of edcuation after 19 years = $184061

Present value, money in hand at present = $49327

Time period, n = 19

Future value = Present value (1 + r)²

184061 = 49327 (1 + r )²

(1 + r )² = 184061 ÷ 49327

(1 + r )² = 3.73

(1 + r) = √3.73

(1 + r) = 1.9313

r = 1.9313 - 1

r = 0.9313

Or Interest rate = 0.9313

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Answer: C. a positive externality.

Explanation:

The positive externality refers to actions that directly or indirectly present benefits to society. Sometimes these activities are paid for third parties, likewise, it can be seen that each action that is carried out, however small, will have effects on people (society) causing a positive externality.

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7 0
3 years ago
Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accoun
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Answer:

The correct answer is A. Account payable 750 Cash 750.

Explanation:

This problem requires us to tell the accounting entry a business will make when making payment against offices supplies puchased on credit.

When the business has bought it it would have made following entry

Offices supplies debit   750

to payable credit          750

On settlement the business will make entry as mentioned in option A.

6 0
3 years ago
Future Clothes Inc., a publicly traded company, designs and manufactures wearable technology. What approach should Future Clothe
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Answer:

The interpretation of the discussion is characterized throughout the explanation segment below.

Explanation:

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So the answer here is just the appropriate one.

5 0
3 years ago
An individual contributes $100 per month to a 401(k) retirement account. The account earns interest at a nominal annual interest
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Answer:

$458,822

Explanation:

The formula to compute the future value is shown below:

Future value = Amount (1+i)^n -1 ÷ i)

where,

Interest rate = 8% ÷ 12 months = 0.6666%

And, the number of months = 35 years × 12 months = 420

Now put this value to the above formula

F = $100 × (1 + 0.6666%)^420 - 1 ÷ 0.6666%

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