Business, 09.07.2019 21:00 KillerSteamcar

Aman wishes to set aside some money for his son's college expenses and a graduation present. $ 8,000/yr would be drawn from the fund on the son's 18th, 19th, 20th birthday and $ 15000 will be drawn on his 21th birthday. how many dollars per year should the man deposit to the fund? the man is going to make the first deposit on his son's 5th birthday and the last on his 15th birthday. the deposits would be for equal amounts and the money in the fund compounds 5 % per year.

Answers: 1

Show answers

Answers

Answer from: marianabeel230

The father must deposit $2493.95.

We arrive at the answer as follows:

We start off by looking at the quantum of withdrawals and calculating their present values. The last deposit will be made when the son is 15.

Year Withdrawal Period between last Present Value @ 5%

deposit & withdrawal $PV = \frac{FV}{(1+r)^{n}}$

---------------------------------------------------------------------------------------------------------

18 8000 18-15 = 3 $6910.70=\frac{8000}(1.05)^{3}}$

19 8000 19-15 = 4 6581.62

20 8000 20-15 = 5 6268.21

21 21000 21-15 = 6 15670.52

Total 35431.05

The total deposits at the end of year 15 should be $35431.05.

Suppose the son's 5th birthday is today. The father will make deposits of equal amounts for the next 11 years until the son's 15 years old.

We can find the value of the equal payments to be made using the Future Value of annuity formula.

$FV_{annuity} = Pmt * \left [\frac{(1+r)^{n} -1}{r}\right ]$

Substituting the values from the equation above we get,

$35431.05= Pmt * \left [\frac{(1.05)^{11} -1}{0.05}\right ]$

$35431.05= Pmt * \left [\frac{1.71 -1}{0.05}\right ]$

$35431.05= Pmt * \left [\frac{0.71}{0.05}\right ]$

35431.05= Pmt * 14.21

$Pmt =\frac{35431.05}{14.21}$

Pmt = 2493.95

Answer from: Quest

answer casual models;

Answer from: Quest

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

Another question on Business

Business, 22.06.2019 03:10

Beswick company your team is allocated a project involving a major client, the beswick company. although the organization has many clients, this client, and project, is the largest source of revenue and affects the work of several other teams in the organization. the project requires continuous involvement with the client, so any problems with the client are immediately felt by others in the organization. jamie, a member of your team, is the only person in the company with whom this client is willing to deal. it can be said that jamie has:

Answers: 2

Answer

Business, 22.06.2019 20:00

During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above

Answers: 3

Answer

Business, 22.06.2019 20:30

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase

Answers: 3

Answer

Business, 23.06.2019 09:50

The goal of an economist who formulates new theories is to a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. b. provoke stimulating debate in scientific journals. c. contribute to an understanding of how the world works. d. demonstrate that economists, like other scientists, can formulate testable theories.

Answers: 1

Answer

You know the right answer?

Aman wishes to set aside some money for his son's college expenses and a graduation present. $ 8,000...

Questions