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Anna35 [415]
2 years ago
10

Your son is about to start kindergarten in a private school. Currently, the tuition is $12,000 per year, payable at the start of

the school year. You expect annual tuition increases to average 6% per year over the next 13 years. Assuming that your son remains in this private school through high school and that your current interest rate is 6%, then the present value of your son's private school education is closest to: $106,230 $137,900 $156,000 This problem cannot be solved.
Business
1 answer:
Mice21 [21]2 years ago
6 0

Answer: Option(C) is correct.

Explanation:

Given that,

Tuition = $12,000 per year

Expect that annual tuition increases to average 6% per year over the next 13 years

Current interest rate = 6%

Present value of my son's private education  = 15000 + 12000 \times (\frac{1.06}{1.06} )^{1} + ....................+ 12000 \times (\frac{1.06}{1.06} )^{12}\\

= 12000 × 13

= $156,000

∴  The present value of your son's private school education is closest to $156,000.

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You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank
aliya0001 [1]

Answer:

Regency Bank

A = $98577.46

king Bank

A = $81832.68

Explanation:

Given Data:

principle amount  =$ 5000

rate of interest = 15%

n =12 {compounded months}

t = 20 year

for Regency Bank

investment amount obtained as

A =P\times [1 + \frac{r}{n}]^{nt}

A = 5000 [1 + \frac{0.15}{12}]^{12\times 20}

A = $98577.46

for King Bank

Investment amount obtained as

A =P\times [1 + \frac{r}{n}]^{nt}

Here n = 1

A = 5000 [1 + \frac{0.15}{1}]^{1\times 20}

A = $81832.68

3 0
2 years ago
A type of production that yields customized products or services for each customer is called
victus00 [196]

Answer:

b. Job order production.

Explanation:

Job order production is the process of manufacturing non-standard or unique products for specific customers. Sometimes making a job order production is also called making a work order or making it an individual order, because each order or work is an order placed by the customer. In most cases, custom jobs are created only once. Many manufacturers specialize in mass production of custom products. Buyers come to the manufacturer with a special design or product, and the manufacturer develops and creates an individual product.

A customer-oriented production puts customer satisfaction at the center of each of its business decisions. Customer focus is defined as an approach to sales and customer relations, in which employees focus on helping customers meet their long-term needs and desires. Here, management and employees coordinate their individual and team goals in order to satisfy and retain customers. This contrasts, in particular, with a focus on sales, which is a strategic approach when the needs and desires of a company or seller are evaluated in relation to the client.

Just in Time production is an inventory strategy developed to increase production and productivity. All production processes (in-progress cost) and the type of production taking into consideration the time criteria in order to minimize the associated sub-costs are derived from the Japanese Kanban system. During production, it determines the order of work by considering the production of the next process. This strategy, which states that the order level is reached in the storage process and that the order must be met after this point, provides the most efficient storage volume and production continuity. In short, just in time, the demand is to produce as soon as possible with excellent quality and transport it to the right place at any time.

Job lot production is a production futures contract whose trading volume is below the level required by normal operations. These contracts or lots are available to add liquidity to futures exchanges by allowing smaller "participants" to enter the market.

Process production is a system from production in which a product goes through several processes or stages from production, which will be operated on a more continuous basis; for example, in oil refineries and petrochemical plants, where these processes include liquid or semi-solid materials. In the production of the main product, they say, gasoline, from such in the production process, by-products such as tar or creosote can inevitably arise.

5 0
2 years ago
Iron triangles have given way to _____ over the years. intergovernmental lobbying issue networks reverse lobbying iron squares
monitta
Iron triangles have given way to INTER-GOVERNMENTAL LOBBYING over the years.

Iron triangles refer to a mutual relationship between three three groups or organizations such as government agencies, interest groups and legislative committees (law makers). It is a policy making relationship in the United States politics. 
8 0
2 years ago
Tina and her best friend Aaliyah want to start a medical transcriptionist company together. They grew up together and know each
Ivahew [28]

Answer:

Limited liability partnership (LLP) or a limited liability company (LLC)

Explanation:

Both the LLP and LLC provide limited liability to the owners and they are both pass through tax entities. That means that they are not directly taxed, instead their owners are taxed.

Depending on where Tina and Aaliyah live, they might not be able to open a LLP, and instead they will need to start a LLC. Any of them will satisfy their needs, but starting a LLC is a little bit more complicated and can cost more money. An LLC is usually better if there are several partners, but in this case if they can avoid the cost of opening a LLC it would be better for them.

8 0
2 years ago
Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of
3241004551 [841]

Answer:

TurnBull's Weighted Average cost of capital is higher by 1.07% if the used common Equity to raised the capital.

Explanation:

First, using the WACC formula and using Retained earnings cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 14.70% =

WACC = 3.75% + 0.49% + 7.50% = 11.73%

Second, using the WACC formula and using common equity cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 16.80% =

WACC = 3.75% + 0.49% + 8.57% = 12.80%

Increase Cost using common equity over Retained earnings is (12.80% - 11.73% ) = 1.07%

4 0
2 years ago
Read 2 more answers
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