Answers
Answer:
The amount that should be in its savings account is $40,554.48.
Explanation:
To calculate this, formula for calculating the present value of an ordinary annuity is employed as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of or amount in the saving =?
P = yearly scholarship payment = $5,000
r = interest rate = 4%, 0.04
n = number of years = 10
Substitute the values into equation (1) to have:
PV = $5,000 * [{1 - [1 / (1 + 0.04)]^10} / 0.04]
PV = $5,000 * [{1 - [1 / 1.04]^10} / 0.04]
PV = $5,000 * [{1 - 0.961538461538461^10} / 0.04]
PV = $5,000 * [{1 - 0.675564168825795} / 0.04]
PV = $5,000 * [0.324435831174205 / 0.04]
PV = $5,000 * 8.11089577935512
PV = $40,554.48
Therefore, the amount that should be in its savings account is $40,554.48.
Final answer:
The present value of an annuity formula can be used to determine the amount needed in the savings account.
Explanation:
To determine how much should be in its savings account to fund one $5,000 scholarship each year for the next 10 years, we can use the formula for the present value of an annuity. The formula is:
PV = PMT * ((1 - (1 + r)^(-n)) / r)
Where PV is the present value, PMT is the payment amount, r is the interest rate, and n is the number of periods. In this case, the payment amount is $5,000, the interest rate is 4% (or 0.04), and the number of periods is 10. Plugging these values into the formula, we get:
PV = $5,000 * ((1 - (1 + 0.04)^(-10)) / 0.04) = $42,179.84
Therefore, North Carolina State University's Irwin College of Engineering should have $42,179.84 in its savings account to fund one $5,000 scholarship each year for the next 10 years.
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Related Questions
Suppose you and a classmate are playing a game where your classmate proposes a division of $1.00. Then, you either accept or reject the offer. If you accept, then you and the classmate get the proposed portions of the dollar. However, if you reject theoffer, then you and your classmate receive nothing.Suppose your classmate offers you $0.12What is your optimal strategy?Your optimal strategy is to _________ the proposed division.A. AcceptB. RejectNow suppose instead that you propose the division of the dollar. Your classmate will then accept or reject your division. If the classmate accepts, then you each receive the portion of the dollar as you have proposed. However, if your classmate rejects, then you both get nothing.Your optimal strategy is to offer your classmate $ 0.99. (Enter a numeric response to two decimal places)
What role should government play in a free market economy?
Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 3.60 Direct labor 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost per part $ 25.00 An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $80,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer
Today (year 0), a new 7-megawatt (MW) solar panel farm is constructed at a direct cost of $10 million. The indirect cost of 10% of the direct cost was spent. Four years from today, a smaller 6-MW solar farm will be added to the existing farm. The cost indices of today and after 4 years are 400 and 600 respectively. If the cost-capacity factor is 0.75 for solar panel construction, what is the estimated total capital investment (direct indirect) for the smaller 6-MW farm
Answers
Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.
What is the term Unstructured Interview about?
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
Learn more about Unstructured Interview, refer to the link:
Answer:
Unstructured interview
Explanation:
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.
Answers
Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
Principal $144,972.64
time 2 years
rate 0.07000
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
PV $310,952.00
time 17 years
rate 7% = 0.07
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?
The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
Find out more on annuities at brainly.com/question/5303391.
Answers
The mean depression level for the first group is μ₁= 16.
The mean depression level for the second group is μ₂ = 12
The weighted mean is closer to 12 than to 16.
The calculated weighted mean for CES-D is 13.5
The calculated weighted mean for MAST is 17.25 ≈ 17.0 rounded to 17.
Calculating the weighted mean μ
μ= {where x1 =μ₁ and x2= μ₂ }
μ= 16×6 + 10×12/ 6+10
μ= 216/16
μ= 13.5
The first group has a mean score of μ₁= 18.
The second group has a mean score of μ₂ = 14
Calculating the weighted mean μ
{where x1 =μ₁ and x2= μ₂ ; w1= number of women in the first group and w2= number of women in the second group}
μ=
μ= 18×6 + 14×12/ 6+10
μ= 276/16
μ= 17.25≈ 17
The answer & explanation for this question is given in the attachment below.
c. stay the same.
d. slowly increase.
Answers
Answer:
b. go down.
Explanation:
The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will Go down
Answers
If the collection of gap values contains 1, ShellSort will correctly sort an array using that collection. the InsertionSort method The normal insertion sort is identical to interleaved with a gap of 1.
How does Shellsort work?
An expanded variant of the insertion sort algorithm is shell sort. In order to lessen the distance between the components to be sorted, it first sorts those that are far apart from one another. Based on the chosen sequence, the space between the pieces is compressed.
What is gap size in shell sort?
We start by selecting a gap size, which establishes the distance between the values in a subsequence. In the case of a starting gap size of 6, for instance, the first subsequence would contain values at positions 1, 7, 13, 19, and so forth, whereas the second subsequence would contain values at positions 2, 8, 14, 20, and so forth.
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