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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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Answer:

. $11.98

Explanation:

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Stock price = D0(1+g)/(r-g)

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2 years ago
Transportation rates:
nydimaria [60]

Answer:

(B) are established primarily through negotiation.

Explanation:

Transportation rates can be referred to as the cost paid by users for transportation services. They are the negotiated economic cost of moving a traveler or a unit of freight between a specific origin and location. Rates are often visible to the consumers since transport service providers must provide this information to secure transactions.

In transportation, the scale of operations change by:

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7 0
3 years ago
A furniture company is producing two type of furniture. Product A requires 8 board feet of wood and 2 Ibs of wicker. Product B r
Blizzard [7]

Answer:

Maximize 30A + 40B.

Explanation:

Given that

Profit margin of product A = $30 per unit

And, the Profit margin of product B = $40 per unit

And, let us assume that

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And, the Number of product A produced is B

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On January 1, 2017, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of
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Credit accumulated depreciation for 2017 is $46,000

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Accumulated depreciation increases as a result of increase in depreciation charged on fixed assets.

Given that:

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8 0
3 years ago
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