1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Virty [35]
3 years ago
10

Joseph will start school on 9/1/14. He is expected to attend school for four years and will need to pay tuition of $50,000 on Se

ptember 1st of each year. His uncle wants to make an investment on 9/1/10 that will provide sufficient funds for four years of tuition. Assuming he can earn 5% annually, how much must invest on 9/1/10.?
a. $27,282
b. $37,976
c. $104,167
d. $200,000
e. $153,156
Business
1 answer:
My name is Ann [436]3 years ago
6 0

Answer:

e. $153,156

Explanation:

From 9/1/14, he needs $50,000 every year for 4 years to fund the tuition fees. Therefore, present value of the amount needed at 9/1/14 using the Present value of annuity due formula

= 50,000 * {1+ (1/(1.05)^4) } / 0.05 * (1.05)

= $186,162

$186,162 is the amount needed after 4 years. Amount you need to invest today to have this amount in four years = $186,162/(1.05)^4 = $186,162/1.21550625 = $153,156.40

You might be interested in
A loss has a Debit balance and is shown on the balance sheet. A gain has a Credit balance and is shown on the balance sheet. B.
spin [16.1K]

Answer:

A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.

Explanation:

As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement

The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement

So the same is relevant too

7 0
3 years ago
Somebody help me plzzzzzzzz
Maslowich

Answer:

r43frf

Explanation:

cde323f

7 0
3 years ago
What represents additional compensation provided to bondholders to offset the possibility that the bond issuer might not pay the
Marizza181 [45]

Answer: Default risk premium

Explanation:

 The default risk premium is one of the type of the additional amount or payment that is usually calculated by using the effective concept as it is difference between the risk free rate and the overall debt interest rate.  

The main objective of the default risk premium is make the additional type of payment in the form of compensation to the borrower and all an organizations or companies are indirectly paying the default risk premium.    

 According to the given question, the Default risk premium is the term which is used to represent the additional type of compensation which is specifically provided by the bond holder.

Therefore, Default risk premium is the correct answer.

3 0
4 years ago
Why do current and available balances sometimes show different amounts of money in the same account?.
mamaluj [8]

Answer: The available balance for your account may differ from the current balance because of pending transactions that have been presented against the account, but have not yet been processed.

Explanation:

6 0
2 years ago
When Desi was determining which option works best to encourage employee participation when planning important changes, he learne
mylen [45]

Answer:

D) Shared power

Explanation:

Power sharing refers to a situation where a team leader will allow the team members to have decision power and influence within the group. It is a system that distributes power among all members of the team in order to encourage greater participation in the decision making processes.

In this case, Desi considers that sharing power with his staff will encourage them to participate more in the planning process. When an employee feels that his participation is valued, he/she will not be afraid or indifferent to do so.

3 0
4 years ago
Other questions:
  • Gross domestic product is the total market value of all final goods and services produced during a period of time.
    13·1 answer
  • discuss 3 ways in which entrepreneurship can help to combat unemployment and improve the economy os south Africa
    8·1 answer
  • Government agencies are which of the following?
    15·1 answer
  • What is the typical relationship between time and interest rate?
    9·2 answers
  • Different loan rates. Winthrop Enterprises is a holding company​ (a firm that owns all or most of some other​ companies' outstan
    10·1 answer
  • During 2019, Enrique had the following transactions: Salary $70,000 Interest income on Xerox bonds 2,000 Inheritance from uncle
    12·1 answer
  • The 9-inch-long elephant nose fish in the Congo River generates a weak electric field around its body using an organ in its tail
    7·1 answer
  • Duane decided on purchasing a \$141,000 home . At closing he brou check for \$7570 The closing costs were as follows:
    15·1 answer
  • Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversation fea
    5·1 answer
  • In the _________, the perfectly competitive firm will seek out ________________________.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!