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Lapatulllka [165]
3 years ago
11

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $200,000 in eighteen ye

ars. If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next eighteen years to fund the education?
Business
1 answer:
ehidna [41]3 years ago
3 0

Answer:

The payment should be of:  $ 6,105

Explanation:

We need to sovle for the annuity-due quota which, generates a 200,000 future value capitalize at 6% per annum:

As this is an annuity due a (1+r) factor is added to the annuity formual to represent this addtional captialziation of the first payment.

PV \div \frac{(1+r)^{time} -1}{rate}(1+r) = C\\

PV 200,000

time: 18 years

rate: 6% = 6/100 = 0.06

200000 \div \frac{(1+0.06)^{18} -1}{0.06}(1+0.06) = C\\

C  $ 6,105.008

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3 years ago
Suppose the production of solar powered lawn mowers is characterized by the production function Q = LE, where Q represents the n
RoseWind [281]

Answer:

110 labor and 1100 energy

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Explanation:

Q = L x E

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We use Excel solver tool to get this

    A            B               C      

1                Labor Energy  

2 Quantity     110          1100

3 Cost             10               1

4 output    121,000  (B2 * C2)

5 cost           2,200 (B2*B3 + C2*C3)

we want to minimize B5 (cost)

changing the quantities (b2:c2)

with the constrain that output b4= 121,000

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4 years ago
Convincing colleagues and friends to donate at or near the maximum amount of $2,700 to an individual candidate and then deliveri
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4 0
3 years ago
. Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted gross income. a. True b. False
Thepotemich [5.8K]

The correct answer is; False, as of 2020.

Further Explanation:

In the previous tax years, 2017-2018, this statement would of been correct. Archie could of claimed his total deductible medical expenses that exceeded 7.5% of his AGI. However, the laws changed for 2019 and this is no longer the correct way to claim medical expenses.

For the 2019 taxes, a person can only deduct any expenses that amount to over 10% of the total AGI per person. The deduction can be figured by taking your AGI and multiplying this total by 10%. The deductions will also have to be itemized before claiming.

Learn more about medical deductibles at brainly.com/question/1845375

#LearnwithBrainly

3 0
4 years ago
6. On February 1, Ann sends Bob a letter offering to employ Bob at Ann’s auto dealership. On February 5, Bob mails Ann a letter
Radda [10]

Answer: A Contract was formed on February 5th

Explanation:

The contract was formed the very day that Bob mailed Ann his acceptance which was on the 5th of February.

Ann attempted to revoke the acceptance too late as she did it a day after he had emailed his acceptance even though she only received it on the 7th.

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