Auntie Frannie wants to provide tuition for her twin nephews to attend a private school. She-anticipates sending
Question:
Auntie Frannie wants to provide tuition for her twin nephews to attend a private school. She-anticipates sending a check for $2000 at the end of each of the next 8 years to apply to the cost of schooling.
(a) If general price inflation, as well as tuition price inflation, is expected to average 5% per year for those 8 years, calculate the present worth of the gifts. Assume that the real interest rate will be 3% per year.
(b) If Auntie Frannie wants her gifts to keep pace with inflation, what would be the present worth of her gifts? Again assume inflation is 5% and the real interest rate is 3%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (15 reviews)
a PW 2000 PA i c 8 i combined i rea...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
When there are significant declines expected in prices of the underlying, what is the best multiple option strategy to hedge falling prices? O Put bear spread O Put butterfly spread Protective Put...
-
A company due to pay a certain amount of a foreign currency in the future decides to hedge with futures contracts. Which of the following best describes the advantage of hedging? It leads to a better...
-
If you deposit $4,000 at the end of each of the next 20 years into an account paying 11.2 percent interest, how much money will you have in the account in 20 years? How much will you have if you make...
-
How are Bit coins different from VCU1, VCU2, and VCU3 currencies? How are they similar? What is the primary economic threat of Bit coins?
-
Solve the quadratic equation by factoring. 1. 6x2 + 3x = 0 2. 8x2 2x = 0 3. 3 + 5x 2x2 = 0
-
Both interest expense on borrowing and dividends on common stock reduce net assets and reduce shareholders equity. Accountants treat interest as an expense in measuring net income but do not treat...
-
What is the probability of drawing at least 1 consonant when drawing four tiles? You are about to draw Scrabble tiles from a bag without replacement; the bag contains the letters A, A, C, E, E, E, L,...
-
In an engagement to review the financial statements of a nonpublic company, SSARS require the accountant to obtain review evidence that is primarily based on inquiries and analytical procedures. The...
-
Beginning raw materials inventory Raw material purchases Ending raw materials inventory Beginning work in process inventory Ending work in process inventory Direct labor Total factory overhead $...
-
Write a short Java method, inputAllBaseTypes, that inputs a different value of each base type from the standard input device and prints it back to the standard output device.
-
I ma Lucky girl recently found out that her grandfather has passed away and left her his Rocky Mountain Gold savings account. The account was originally opened 50 years ago when Ima's grandfather...
-
As a recent graduate, you are considering employment offers from three different companies. However, in an effort to confuse you and perhaps make their offers seem better, each company has used a...
-
Use the templates in Tables 4-1, 4-2, and 4-3 to recast the financial statements for Nordstrom, Inc. Cash Flow Statement Standardization Income Statement Standardization Balance Sheet Standardization...
-
JAH Company is about to invest $ 4 0 0 , 0 0 0 in machinery and other capital equipment for a new product venture. Cash flows for the first three years are estimated as follows Year 1 $ 2 1 0 , 0 0 0...
-
Consider a sequence of coin tosses with probability p of coming up heads (H).Use a martingale argument to calculate the expected value of the rolls until the next sequence appears.where H = heads and...
-
A marching band performs on the football field at half-time. As they perform, the members of the band stand in the shape of a sinusoidal function. While playing, they move, but still maintain the...
-
Kopecky Industries Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash...
-
Jansen Company's general ledger showed a checking account balance of $24,220 at the end of May 2021. The May 31 cash receipts of $2,380, included in the general ledger balance, were placed in the...
-
What does it mean when we say a number is written in base 7 ?
-
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
-
Which of the three broad organisational development intervention methods do you believe has the most potential for achieving tangible organisational change through organisational development. Why?
-
Consider the common moral precept that stealing is wrong. Hector is with a group of friends in a local supermarket. One of Hector's buddies takes a high-energy drink from a six-pack on the shelf,...
-
While going to work this morning off site from his office, an engineer accidently ran a stop sign and was in a car accident that resulted in the death of a 5-year-old child. He has a strong belief in...
-
Claude is a fourth-year engineering university student who has just been informed by his instructor that he made a very low grade on his Spanish language final test for the year. Although he had a...
-
Acaba de contratar a un nuevo cliente que lleva ms de un ao en el negocio y que ha estado utilizando Excel para hacer un seguimiento de su actividad empresarial mensual. Qu 2 funciones de QuickBooks...
-
Barrhaven-brew, a local Ottawa micro-brewery, recently merged with a bottle making plant in New York to complement its Barrhaven brewing facilities. Barrhaven-brew has two divisions: Bottle Making...
-
De qu dos formas puedes crear una plantilla personalizada para un proyecto? Duplicar una plantilla de QuickStart Importar una plantilla Descargar proyectos desde la pestaa de proyectos compartidos...
Study smarter with the SolutionInn App