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vitfil [10]
3 years ago
12

Your child is planning attend summer camp for 3 months, starting 12 months from now. The cost for camp is $2,676 per month, each

month, for the 3 months she will attend. If your investments earn 2.3% APR (compounded monthly), how much must you invest each month, starting next month, for 3 months such that your investment will grow to just cover the cost of the camp
Business
1 answer:
Vinil7 [7]3 years ago
5 0

Answer:

Monthly deposit= $2,625.16

Explanation:

Giving the following information:

Total cost= 2,676*3= $8,028

Monthly interest rate0 0.023/12= 0.00192

<u>First, we need to calculate the nominal value required at the end of the third month:</u>

PV= FV / (1 + i)^n

FV= 8,028

i= 0.00192

n= 9 months

PV= 8,028 / (1.00192^9)

PV= $7,890.6

<u>Now, the monthly investment to reach $7,890.6:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (7,890.6*0.00192) / [(1.00192^3) - 1]

A= $2,625.16

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Answer:

The given question relates to budgeting. In simple words, budgeting helps one to set up a saving schedule for thier finances, it means that people still have sufficient funds for the items they need and activities which are valuable to them. The expenditure or savings strategy will either keep you free of trouble or assist you get this out of debt if you're already in debt.

8 0
3 years ago
Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8
Darina [25.2K]

Answer:

Market rate of return = 12.45%

Explanation:

Below is the calculation of market rate of return.

D = Just pad dividend x (1 + growth rate)

D = 2 x (1 + 0.038)

D = 2.076

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Market rate of return = (2.076 / 24) + 0.038

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4 0
3 years ago
Suppose the M P C is 0.8 and the current tax rate is 25 % . What is the government purchases multiplier? Specify all answers to
Goryan [66]

Answer:

Therefore, Increases in the tax rate decrease the government purchases multiplier

Explanation:

Given that

MPC = 0.8

Tax rate t = 0.25

tax rate is increases by 35%

Government purchases multiplier

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So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5

Government purchases multiplier

= 1 ÷ 1 - MPC × (1 - t)

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tax rate t = 0.35

GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)

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3 0
3 years ago
Should underperforming restaurants be closed or sold?
crimeas [40]

Answer:

sold

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Underperforming restaurants are those restaurants  which does not perform well. The restaurant does not run properly and no people or less people visits the restaurant for eating.

This can be due to several factors. The restaurant's location may not be good, the restaurant may not provide good quality and tasty food, or people might not find their required menu in that restaurant. All these factors leads to less people visiting the restaurant and less revenue generation.

In such a case, the owner of the restaurant must sell the restaurant to some other party so that he does not undergo any losses. By selling the property he will get some amount of his investment which he could utilize in his further projects.

Also by selling the restaurant, the employees of that restaurant will not go out of job and can feed their family.

So, the restaurant should be sold.

7 0
3 years ago
Juan is always researching different investment options. A few weeks ago he noticed some nice homes for sale in his neighborhood
lesya692 [45]

Answer: The market will experience more demand and the prices of goods will rise up.

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7 0
3 years ago
Read 2 more answers
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