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
Vadim26 [7]
3 years ago
6

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen ye

ars. If they are able to earn 5% per annum (compounded annually), how much must be deposited at the end of each of the next eighteen years to fund the education? (The future value of a single sum for 18 periods at 5% is 2.40662; The future value of an ordinary annuity of 1 for 18 periods at 5% is 28.13238).
Business
1 answer:
dezoksy [38]3 years ago
4 0

Answer:

$4,265.55

Explanation:

Future value = $120,000

Interest rate (i) = 5%

Annual deposit = ?

Time period (n) = 18 year

Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.

Future value = Annual deposit x future value annuity due factor (i%, n)

120,000 = Annual deposit x FVADF (5%, 18period)

120,000 = Annual deposit x 28.13238

Annual deposit = 120,000/28.13238

=$4,265.547

=$4,265.55

You might be interested in
Which of the following situations represents an economic problem? a) A student trying to decide how to spend his weekly allowanc
enot [183]
<h2>Both situations are examples of an economic problem.</h2>

Explanation:

Let us understand the term "economic problem"

Though the expectation of the people are endless, the "resources available" to satisfy the need is limited. This causes the "economic problem".

A student trying to decide how to spend his weekly allowance:

The need of student may be endless but still he is in a position to decide only based on the amount which he has to spend. He needs to prioritize the needs and then spend accordingly.

A country choosing to sacrifice some privacy to gain more security:

Under a compelled situation, the country has to sacrifice the privacy and then have to gain security. The loss due to negotiation of privacy is for sure and this leads to economic problem.

5 0
3 years ago
Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man
WARRIOR [948]

Answer:

Date      Account Title         Debit        Credit

Feb 13    Cash                 $10,975  

                  Sales                                  $10,000

            Sales Tax Payable          $975

             (10000 * 9.75%)

5 0
3 years ago
_______ is the process of deciding where one page ends and the next begins. A. Pagination B. Word wrap C. Crop D. Editing
irinina [24]
Pagination is the answer
7 0
3 years ago
Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on
kolbaska11 [484]

Answer:

The answer is

Dr: Notes Receivable $4,800

Dr: Interest Receivable $120

Cr: Sales $4,920

Explanation:

The yearly interest rate is 10%

So the interest rate for 90 days(assume 360 days make a year?

90/360 x 10%

2.5% is the interest rate for 90 days.

The interest payment for 90 days will be;

2.5% x $4,800

= $120

The entry will now be:

Dr: Notes Receivable $4,800

Dr: Interest Receivable $120

Cr: Sales $4,920

3 0
3 years ago
Determine the order in which the following budgets are generally prepared.
xenn [34]

Answer:

The order in which the following budgets are generally prepared are as arranged below:

1. Sales budget

2. Production budget

3. Material purchases budget

4. Budgeted income statement

In an attempt to expatiate the decision above. We must observe that income statement starts with revenue. Similarly here, the budget will starts with sales. The revenue section is followed by production budget which from which various budgets like material, direct labor and overhead budget are prepared from. After the Production budget, follow the Material purchase budget, then Budgeted Income Statement

5 0
3 years ago
Other questions:
  • For the gillette fusion razor, over 60 percent of men who tried the razor adopted the product permanently. these men are known a
    7·1 answer
  • ​Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers on th
    7·1 answer
  • intext:"The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is"
    6·1 answer
  • Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near zero. If the sum of t
    9·1 answer
  • On December 31, 2020, Vitners Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferre
    14·1 answer
  • Jill’s business has current assets of $50,000 and current liabilities of $25,000. Which statement is true about the company’s cu
    13·1 answer
  • Telsa’s new products have been successful, in part, because they have a well-defined new product strategy at their core and are
    8·2 answers
  • Pascarelli Corporation’s inventory at the end of Year 2 was $132,000 and its inventory at the end of Year 1 was $160,000. Cost o
    6·1 answer
  • During some year a country had exports of $50 billion, imports of $70 billion, and domestic investment of $100 billion. what was
    8·1 answer
  • A marketing manager, how does a focus on sustainability inform your tasks and activities?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!