Ask Question
BusinessBusiness
23 February, 02:29

Tuition of $2200 is due when the spring term begins, in What amount should a student deposit today, at to have enough to pay tuition?

+3
Answers (1)
  1. 23 February, 04:51
    0
    Since Interest Rate and Period is not given; we would assume the spring term begins in 4 months and

    Explanation:

    First we will require to use the compound interest formula.

    It is not mentioned the compounding period in the question. However, many of the bank accounts today offer monthly compounding, and this will be used as the basis.

    i=interest rate=7.62% p. a = > 7.62/12=0.635% per month

    FV=PV (1+i) ^n

    FV=future value = 2200

    PV=present value, to be found

    i=interest rate per compounding period (month) = 0.00635

    n=number of periods=4

    2200=PV (1+0.00635) ^4

    PV=2200 / (1.00635^4)

    PV=$2144.99

    In case interest is not compounded, we could apply the simple interest formula:

    FV=PV (1+ni)

    PV=2200 / (1+4*0.00635)

    PV=$2145.504
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tuition of $2200 is due when the spring term begins, in What amount should a student deposit today, at to have enough to pay tuition? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs: A. do not affect, and are not affected by, the quantity the firm produces B. only charge when production changes C.
Answers (1)
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20.
Answers (1)
A customer is selling inherited stock. The decedent originally paid $50 per share and on the date of the decedent's death, the stock was worth $60 per share. On the day the customer sells the stock, the price per share is $62.
Answers (1)
Voltage industries, a calendar-year company, purchases equipment for $85,000 on january 2nd, 2017. the equipment's expected useful life is five years, and the expected salvage value of the equipment is $5,000.
Answers (1)
The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital's December 31, 2015, balance sheet reports $10,000 of accumulated depreciation on this equipment.
Answers (1)
New Questions in Business
Kyle and lyle want to pool their inheritance money to make a joint investment. they are young and are willing to accept moderate to high risk over a number of years. which combination of investment options best suits their needs?
Answers (1)
Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: Utilities for the store $ 10 comma 300 Sales commissions 10 comma 300 Sales revenue 164 comma 100 Purchases of
Answers (1)
If joe were to introduce himself as dr. early to sell to gensol, knowing that people would assume that he was a medical doctor, but never tell anyone that he was, would contracts entered into be considered to be fraudulent?
Answers (1)
Which of the following are reasons the aggregate demand curve is downward sloping? Check all that apply. 1) A higher price level decreases the real value of consumers' assets.
Answers (1)
If Gerry makes a deposit of $1,500 at the end of each quarter for five years, how much will he have at the end of the five years assuming a 12% annual return and quarterly compounding?
Answers (1)
Home » Business » Tuition of $2200 is due when the spring term begins, in What amount should a student deposit today, at to have enough to pay tuition?
Sign Up Forgot Password?