answer.
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
Valentin [98]
2 years ago
4

Frank and Miranda would like to plan for their son’s college education. They would like their son, who was born today, to attend

a private university for 4 years beginning at age 18. Tuition is currently $70,000 per year and has increased at an annual rate of 6%, while inflation has only increased at 3% per year. They can earn an after-tax rate of return of 8%. How much must they save at the end of each year if they would like to make the last payment at the beginning of their son’s first year of college?
Business
1 answer:
Katyanochek1 [597]2 years ago
8 0

Answer:

Annual deposit= $23,339.36

Explanation:

Giving the following information:

Tuition= $70,000

Number of years= 18

Interest rate= 8%

Growth rate= 6%

<u>First, we need to calculate the total future value required:</u>

FV= PV*(1+i)^n

Year 1= 70,000*1.06^18= 199,803.74

Year 2= 199,803.74*1.06= 211,791.97

Year 3= 211,791.97*1.06= 224,499.48

Year 4= 224,499.48*1.06= 237,969.45

Total FV= $874,064.64

<u>Now, to calculate the annual deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (874,064.64*0.08) / [(1.08^18) - 1]

A= $23,339.36

You might be interested in
Barb overheard an unpleasant encounter between the manager of the paint store where she works and a sales rep who sells a well-k
alexandr402 [8]

Answer:

conflict channel.

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

A sales representative (salesperson) refers to an individual or employee who is saddled with the responsibility of taking orders from customers, as well as selling finished goods and services to consumers or end users.

A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.

A conflict channel can be defined as a discord, difference, or dispute that arises between two or more channel partners, especially by competing against one another. Thus, it's a situation in which the actions or operations of one channel partner adversely affects the business, sales, revenue, profitability, goals or market share of the other channel partner.

Generally, there are four (4) main types of conflict channel and these include;

I. Horizontal level conflict.

II. Vertical level conflict.

III. Multichannel level conflict.

IV. Inter-type level conflict.

In this scenario, Barb overheard an unpleasant encounter between the manager and a sales representative over how their paint products should be displayed, the conversation degenerated into a loud argument.

Thus, what Barb observed in this scenario was an example of a conflict channel.

6 0
2 years ago
Fizzzle Inc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should thi
saw5 [17]

Answer:

The gain is subtracted from net income in the operating activities section

Explanation:

Given that

Sale value of an equipment = $230,000

And, the gain on the sale = $45,000

So by considering the above information

We can say that the Sale value of an equipment is shown in the investing activities as a cash inflow while the gain on the sale is to be subtracted from the net income in the operating activities and if there is a loss than it would be added to the net income

4 0
2 years ago
It is a busy saturday and you realize that a customer who just left the store did so without getting change back. he is due almo
soldier1979 [14.2K]
You would turn it in to the police so they can find out whos money it is or you could try to find him
8 0
2 years ago
Pearl Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types
Nonamiya [84]

Answer:

i. The total cost for Purchase equipment

Particulars                                               Amount

Cash paid for equipment, including      $130,200

sales tax of $6,200

Freight and insurance cost while            $2,480

in transit  

Cost of moving equipment into               $3,844

place at factory  

Wage cost for technicians to test             $4,960

equipment  

Special plumbing fixtures required for     $9,920

new equipment                                         <u>                </u>

Total Purchase cost                                  <u>$151,404</u>

<u />

ii.The total cost of construction price of equipment

Particulars                                                            Amount

Material and purchase part                               $245,520

Labor Cost                                                          $235,600

Overhead Cost                                                   $62,000

Cost of Installing equipment                             <u>$5,456     </u>

total cost of construction price of equipment  <u>$548,576</u>

<u />

<u>Workings</u>

Material and purchased parts = Gross cost - Cash discount on gross cost

=$248,000 - (1%*$248,000)

=$248,000 - $2480

=$245,520

3 0
2 years ago
Please consider that regional airline and a furniture manufacture each generate annual revenue of $120 million and earn net inco
Nady [450]

Answer:

The regional aircraft will presumably have a higher break-even point the original investment point than a furniture maker in light of the fact that the majority of a carrier's expenses are fixed . It is imperative to take note of that despite the fact that the two organizations report indistinguishable income and total compensation figures, their equal the initial investment focuses will probably contrast fundamentally due to contrasts in their cost structures.

7 0
2 years ago
Other questions:
  • As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers ar
    9·1 answer
  • In January of 20X1, the Falwell Company began construction of its own manufacturing facility. During 20X1, $6,000,000 in costs w
    13·1 answer
  • Upton Umbrellas has a cost of equity of 11.6 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 perc
    5·1 answer
  • During the meeting, the manager exclaims "I am in charge" in order to initiate structure, set goals, assign tasks, and take conc
    8·1 answer
  • Suppose a flood changes the production capacity in a country. How would you represent this situation with a production possibili
    5·1 answer
  • Krista sets up a business selling coffee from a coffee cart. She earns $12,000 in revenue a month. She incurs costs of $3000 per
    5·1 answer
  • Nabb &amp; Fry Co. reports net income of $25,000. Interest allowances are Nabb $5,000 and Fry $4,000, salary allowances are Nabb
    9·1 answer
  • To speed the process of surveying, surveyors use brass metal plates to record important information. The benchmarks, as they are
    12·1 answer
  • Stevenson, Ross, and Warner (SRW) ​ Maddie is the CEO of Stevenson, Ross, and Warner (SRW), a regional accounting firm. SRW of
    7·1 answer
  • During Year 6, Kincaid, Inc. earned $85,000 of cash revenue. The company incurs all operating expenses on account. The Year 6 be
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!