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Pachacha [2.7K]
3 years ago
15

Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73

,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
Business
2 answers:
Amanda [17]3 years ago
8 0

Answer: 9.01

Explanation:

GIVEN the following ;

Period(t) = 18

Present value(PV) = $73,000

Future Value(FV) = $345,000

To calculate the rate of interest in other to attain a future value of $345,000 with a Present value of $73,000 in the next 18 years.

Recall:

Rate(r) = [ (FV/PV)^1/t] - 1

r = [ ($345,000/$73,000)^1/18 ] - 1

r = [(4.72602739726)^1/18] - 1

r = 1.0901142 - 1

r = 0.0901

r = 0.0901 or 9.01%

Rate of interest on the investment should be 9.01%

iren2701 [21]3 years ago
4 0

Answer:

r= .0901, or 9.01%

Explanation:

N=18, PV=73,000, FV=345,000, I=? 9

Therefore:

V = PV(1 +r)t

= (FV/PV)1/t– 1

r= ($345,000/$73,000)1/18– 1

r= .0901, or 9.01%

The annual rate of interest the person must earn on the investment to cover the cost of the child’s college education is 9.01%

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Shawn McGill is on the executive board for ABC pharmaceuticals. The company produces the number one selling cancer fighting drug
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Bargaining power of suppliers: Pressure suppliers can exert on its costumers (individuals or organizations) by raising prices, lowering quality, or reducing availability of their products. When suppliers are strong enough to pressure their customers, usually the buyers will end up paying higher costs due to; higher prices, lower quality or reduced availability of the product.

In this case, since ABC Pharmaceutical is the leader in cancer fighting drugs, they will use their dominant supplier position to raise the price of their product affecting their customers (patients, insurance companies, other health care organizations).

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Margaret, a 35-year-old client who earns $70,000 a year, pays 7.65% of her gross pay in Social Security payroll taxes, spends14%
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= 100 - Social Security payroll tax rate - saving rate

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For determining Margaret’s wage replacement ratio, we subtract the Social Security payroll tax rate and the saving rate from the percentage value i.e 100 so that the accurate ratio can come.

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Alejandro purchased a building in​ 1985, which he uses in his manufacturing business. Alejandro used the ACRS statutory rates to
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Read 2 more answers
barga company's net sales for year 1 and year 2 are $730,000 and $1,095,000, respectively. its year-end balances of accounts rec
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Year 1 = 35.23 days

Year 2 = 44.64 days

<h3>What are net sales?</h3>
  • Net sales are calculated by deducting appropriate sales returns, allowances, and discounts from gross revenue.
  • Net sales costs have an impact on a company's gross profit and gross profit margin, but net sales exclude the cost of goods sold, which is typically a key driver of gross profit margins.
  • Net sales are operating revenues obtained by a corporation for selling its products or performing its services in bookkeeping, accounting, and financial accounting.
  • They are recorded directly on the income statement as Sales or Net sales and are also known as revenue.

So, Days' Sales Uncollected = Accounts receivable / Net Sales * Days

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Year 2 = $91,000 / $744,000 * 365 days = 44.64 days

Therefore,

Year 1 = 35.23 days

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Know more about net sales here:

brainly.com/question/4177260

#SPJ4

The question you are looking for is here:

Barga Co.'s net sales for Year 1 and Year 2 are $663,000 and $744,000, respectively. Its year-end balances of accounts receivable follow Year 1, $64,000; and Year 2, $91,000. Complete the below table to calculate the days' sales uncollected at the end of each year.

Days' Sales Uncollected

Choose Denominator: / Choose Numerator: * Days = Days' Sales Uncollected

Year 1: days

Year 2: days

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