# I want to have a college fund for my daughter. She is 5, so I have 13 years to achieve my goal of \$50,000. The bank says I can earn 2%. I have \$5000 already set aside. How much do I need to contribute every year?

\$2960 yearly savings

Explanation:

From the values given and from mathematical manipulation, he or she needs a contribution of at least \$2900 every year in order to achieve his goal of \$50,000.

EXPLANATION

• If the child is 5yr old now, in 13years time, she will be 18yr old.
• \$2950 target yearly

• for the next 13years, it would have amount to \$38350

• remember the bank will give an annual interest rate of 2%
• so for 13years, that's 26% = 0.26

• In the 13th year, he would have saved \$38350, add the 26% interest for the duration of 13years = 26% x \$38350 + \$38350 = \$48321

• His savings will fall between \$2950 - \$2960 yearly.

You will need to contribute approximately \$2,615.97 each year to your college fund to achieve your goal of \$50,000 in 13 years, starting with \$5,000 and earning 2% interest compounded annually.

### Explanation:

To calculate how much you need to contribute every year to have \$50,000 in a college fund for your daughter in 13 years with an existing \$5,000 at a 2% annual interest rate, we need to use the future value of an annuity formula:

The future value of an annuity formula is FV = P × {[(1 + r)^n - 1] / r}, where:

• FV is the future value of the annuity (the amount we want to have in the future, which is \$50,000).
• P is the annual payment (the amount you will contribute every year).
• r is the annual interest rate (which is 2%, or 0.02).
• n is the number of years the money is deposited (13 years).

Since you already have \$5,000, we first need to find out how much this amount will grow to in 13 years at an annual interest rate of 2%. That's calculated using the compound interest formula:\$5,000(1 + 0.02)^{13} = \$6,727.09

Now, subtract this future value of your initial savings from the goal:\$50,000 - \$6,727.09 = \$43,272.91

This is the amount that needs to be reached with the annual contributions. Plugging this back into the future value of an annuity formula, we solve for P:\$43,272.91 = P × {[(1 + 0.02)^{13} - 1] / 0.02}We can now solve for P, which is the annual contribution required:P = \$43,272.91 / {[(1 + 0.02)^{13} - 1] / 0.02} = \$2,615.97

Therefore, you'd need to contribute approximately \$2,615.97 each year to reach your \$50,000 college fund goal in 13 years, assuming a 2% annual rate.

## Related Questions

Social surplus is the​ ____________. A. total value from trade in a markettotal value from trade in a market. B. difference between the amount that buyers actually pay and what they wish to pay. C. excess of aggregate demand over aggregate supply. D. difference between consumer surplus and producer surplusdifference between consumer surplus and producer surplus.

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.

### Explanation:

The question asked here is: Social surplus is the​ ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.

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With an inflation rate of 9 percent, prices would double in how many years?

8 years

Explanation:

the rule of 72 calculates how long it takes for an amount to double given interest rate

72 / 9% = 8 years

The 'Rule of 72' can be used to estimate how long it would take for prices to double with an inflation rate of 9 percent. According to this rule, it would take approximately 8 years.

### Explanation:

In order to calculate how long it would take for prices to double with an inflation rate of 9 percent, you can use the 'Rule of 72'.

The Rule of 72 is a simplified way to estimate the number of years required to double the money at a given annual rate of return or inflation. According to this rule, you simply divide 72 by the annual rate of return or inflation. Therefore, using the Rule of 72, it would take approximately 8 years (72 divided by 9) for prices to double with an inflation rate of 9 percent.

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Blitz Corp. had total sales of \$3,010,000 last year and has 106,000 shares of stock outstanding. The benchmark PS is 1.6 times. What stock price would you consider appropriate?

the stock price is \$45.44

Explanation:

The computation of the stock price is shown below:

Sales per share is

= Total sales ÷ stock outstanding  shares

= \$3,010,000 ÷ 106,000 shares

= \$28.40

Now

Benchmark PS = Stock price ÷ Sales per share

Stock price = \$28.40 × 1.6

= \$45.44

hence, the stock price is \$45.44

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Universal containers has included its orders as an external data object into Salesforce. You want to create a relationship between Accounts and the Orders object (one-to-many relationship) leveraging a key field for account which is on both external object and Account. Which relationship do you create?

Explanation:

Indirect lookup relationship is used when there is no Salesforce ID in the external data. So this relationship basically links the external object which is the 'child' to the custom object which is the 'parent'.

As the question states, universal containers has included its orders as an 'external data object' into salesforce. Now it wants to create a link or relationship between accounts and orders objects. This is possible through indirect lookup relationship.

Potential effects of departmental performance reports on employee behavior include all of the following except: Including indirect expenses can lead to a manager being more careful in using service department's costs. Using budgeted service department costs insures that operating departments are not held responsible for excessive service department costs. Including uncontrollable costs can serve to improve a manager's morale.

Potential effects of departmental performance reports on employee behavior except including uncontrollable costs served to improve manager's morale.

Explanation:

• Performance management plays an important role to keep a proper record of all the works that are being performed in a company .
• A proper performance management also shows an important effect on the behavior of the employees.
• If the employees are boosted properly by the managers they will increase the productivity .
• This will help the company to earn profits. Departmental performance keep record of all the expenses that are being done during the production process . It also help the manager to gain information and can adopt proper strategy to reduce expenses.

Is a business cycle a type of recession?
yes or no?