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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

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An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i
Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

PresentValue=\frac{Coupon}{r}

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = \frac{170}{0.09} = $1,888.89

4 0
3 years ago
On September 1, 2017, Hyde Corp., a newly formed company, had the following stock issued and outstanding:• Common stock, no par,
Pavel [41]

Answer:

Common Stock                                  5,000

Additional paid-in Common stock  70,000

Preferred Stock                                15,000

Additional paid-in Preferred stock 22,500

Explanation:

For the common and preferred stock accounts, we multiply the shares outstanding by the face value.

The additional paid-in will be the difference between the par value and the market price of the share at issuance.

<u>Common stock</u>

5,000 issued shares x $ 1 par value = 5,000

<u>Additional paid-in</u>

15 - 1 = 14 additional paid-in per share

5,000 shares x 14 = 70,000

<u>Preferred stock</u>

1,500 issued shares x $ 10 par value = 15,000

<u>Additional paid-on</u>

25 - 10 = 15 additional per share

1,500 x 15 = 22,500

3 0
3 years ago
Help!
natali 33 [55]

Answer:

B) Pay bills when they are due.

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.

This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.

Generally, it's recommended that loans or bills are paid on a timely basis or as at when due in order to obtain a good credit score.

Hence, a way to establish a good credit record (score) is to pay bills when they are due.

6 0
3 years ago
IDPSs can help the organization protect its assets when its networks and systems are exposed to ____________________ vulnerabili
zhannawk [14.2K]

Answer:

The correct answer is Known vulnerabilities.

Explanation:

An intrusion prevention system (or by its acronym in English IPS) is a software that exercises access control in a computer network to protect computer systems from attacks and abuses. Intrusion prevention technology is considered by some to be an extension of intrusion detection systems (IDS), but in reality it is another type of access control, closer to firewall technologies.

5 0
3 years ago
Recruiting __________ is sometimes viewed as unethical.
zhuklara [117]

Answer:

b

Explanation:

4 0
3 years ago
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