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masha68 [24]
2 years ago
8

our oldest daughter is about to start kindergarten at a private school. Tuition is $10,000 per year, payable at the beginning of

the school year. You expect to keep your daughter in private school through high school. You expect tuition to increase at a rate of 5% per year over the 13 years of her schooling. What is the present value of the tuition payments if the interest rate is 5% per year
Business
1 answer:
kykrilka [37]2 years ago
5 0

The present value of the tuition payments if the interest rate is 5% per year will be $130,000.

<h3>What is Present value?</h3>

Present value is used to arrive a sum that need to be invested to reach a particular future value.

Since the inflation rate is equal to discount rate, then, the P.V. will equal to the sum of the Tuition fee for 13 years.

Present value = Tuition fee * Number of years

Present value = $10,000 * 13 years

Present value = $130,000

In conclusion, the present value of the tuition payments if the interest rate is 5% per year will be $130,000.

Read more about Present value

<em>brainly.com/question/24852229</em>

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A perfectly elastic demand curve implies that the firm: A) must lower price to sell more output. B) can sell as much output as i
dsp73

Answer:

A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.

Explanation:

The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.

4 0
3 years ago
Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000
mina [271]

Answer:

$0

Explanation:

The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.

Let

u = number of units

s = selling price per unit

v = variable cost per unit

F = Fixed cost

I = Net income

I = su - F - vu

but vu = 0.3su

Hence

I = su - 0.3su - F = 0.7su - F

Given that the proposal will increase sales by $12,000,

New sales = su + 12000          ( in $)

and total fixed costs by $8,400

New fixed cost = F + 8400

New variable cost = 0.3( su + 12000) = 0.3su + 3600

New net income = su + 12000 - 0.3su - 3600 - F - 8400

= 0.7su - F

New net income is same as the old net income hence no increase.

4 0
3 years ago
When using the needs approach, several "special needs" should be considered. One special need is money to cover unexpected event
12345 [234]

Answer:

Emergency fund.

Explanation:

Emergency funds are money that we keep on hand in case of unforeseen events. It may cover car repairs, unforeseen buying, medical bills and so on.

It is important to hold some emergency funds so as to avoid being stranded with no access touch needed resources.

Also emergency funds can be saved over time in case of job loss, having some back-up funds to use in the meantime will be a wise strategy.

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2 years ago
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are c
S_A_V [24]

Answer:

Net income = $76,000

Earning per share (EPS):

Income from continuing operations per share = $4.40 per share

Loss from discontinued operations per share = -$3.64 per share

Net Income per share = $0.76 per share

Explanation:

Note: See the attached excel file for the income statement.

Also Note: Two years (2016 and 2018) were mistakenly mentioned in the question instead of just one of them. I therefore picked 2016 to prepare the income statement.

In the attached excel file, the earning per share (EPS) is calculated as follows:

Number of shares outstanding = 100,000 shares

Income from continuing operations per share  = Income from continuing operations / Number of shares outstanding = $440,000 / 100,000 = $4.40 per share

Loss from discontinued operations per share = Loss from discontinued operations / Number of shares outstanding = -$364,000 / 100,000 = -$3.64 per share

Net Income per share = Net Income / Number of shares outstanding = $76,000 / 100,000 = $0.76 per share

Download xlsx
5 0
2 years ago
Mutual funds _____. a. are investment companies that use funds provided by savers to buy various types of financial assets, incl
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Answer:

a)

Explanation:

Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds  are managed by financial experts and are less risky for common public than direct investment in stock market.

7 0
3 years ago
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