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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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lapo4ka [179]

Answer:

-$1,500 more expensive

Explanation:

Calculation for How much cheaper or more expensive would it be to use the stainless-steel pump rather than a new brass pump

Using this formula

Cheaper or more expensive=Brass pump value-( Current pump value+Pump reconfigure extra amount spent)

Let plug in the formula

Cheaper or more expensive =$6,000-($7,000+$500)

Cheaper or more expensive =$6,000-$7,500

Cheaper or more expensive =-$1,500 more expensive

Therefore based on the information given the stainless steel pump will be $ 1500 more expensive than the brass pump.

4 0
3 years ago
A business that incorporates must file a document with the state, which includes a description of the business activities, the s
Sindrei [870]

Articles of incorporation ,  corporate charter are used to describe this document.

<h3><u>Explanation:</u></h3>

The document that is very formal in nature and also filled with information related to the creation of the company refers to the Articles of incorporation. It contains the details related to the name and address of the company, the type and the amount of stock that is to be issued, agent for service of process.

The document that contains the information related to the secretary of state  during the time in which the business is incorporated refers to the corporate charter. This can also be referred as  certificate of incorporation. The details in this documents may differ that depends on the size and the regulations of the company.

6 0
3 years ago
What is the most common method of measuring flows of trade?
kakasveta [241]

The most common method to measure flows of trade is the comparison between the exportation of merchandise, services, and the capital of the countries.

<h3>What is trade?</h3>

Trade is the situation where the countries buy (import) from or sell (export) to the countries outside the boundaries of their own territories.

Exports referred to the scenario where one country provides goods and services to another country abroad. The comparison of goods, services, and monetary capital of foreign countries with respect to their own countries can be used as a common method to measure the trade flows.

Therefore, the exporting of goods, services, and capital to other countries is the method to determine trade flows.

Learn more about the trade from the related link:

brainly.com/question/3617318

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4 0
2 years ago
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Answer:

$143,750

Explanation:

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PV = $200,000 / (1 + 6%)⁵ = $149,451.63

net lease amount = $790,000 - $149,452 = $640,548

PVIF Annuity due, 6%, 5 payments = 4.546

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