Module 4 Assignment

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs, average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year. Assuming that costs continue to increase an average of 4% per year, how much is the tuition and other costs for one year for this student in 18 years when she enters college?

Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. n finance, human capital of an investor is defined as the present value of all the future earnings of this person. For young investors, human capital usually constitutes a large percentage of their total wealth. Human capital is subject to mortality risk—the likelihood that the investor dies prematurely and therefore loses all the labor income of subsequent working years. The loss of an investor's human capital is borne by his/her family. The life insurance policy provides protection against mortality risk. Which of the following is likely to be the best life insurance choice for you and your spouse? a. Buy a small life policy in the beginning and gradually increase the death benefit as you and your spouse age. b.Buy a large life policy in the beginning and gradually reduce the death benefit as you and your spouse age.…

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Hi I have a question regarding Austrlian Retirement and Financial Planning. In this example, the couple are retired and one of them is ill and looking for a retirement home, the home is going to cost $450,000 deposit. Neither of the couple work and draw 50,000 from their super in order to stay afloat. They have 20,000 and 562,000 in super combined, have a 900,000 dollar home. They also have 10,000 worth of home contents, a 15,000 dollar vehicle, and 55,000 cash in the bank. It is important to note they have 0 debt and everything is fully paid off. Neither of them have ever received pension money or government support. Myrtle wishes to put bob in an aged care facility, and when that is done she wants to return to work part time. 1. How will Myrtle's income be funded of $40,000 per annum be financed now, in the future and when she retires in 10 years time?

You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current salary. You look into opening a small grocery store. Suppose that the store has annual costs of $150,000 for labor, $50,000 for rent, and $30,000 for equipment. There is a one-half probability that revenues will be $210,000 and a one-half probability that revenues will be $400,000.   Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Enter a loss as a negative number.   a. In the low-revenue situation, what will your accounting profit or loss be?      $      What will your accounting profit or loss be in the high-revenue situation?      $  b. On average, how much do you expect your revenue to be?        $        Your accounting profit?      $      Your economic profit?      $…

16. You are thinking about going to graduate school to earn a master's degree, which you hope will allow you to earn more money. Which of the following is NOT an incremental cash flow associated with your decision to extend your schooling versus going into the workforce when you finish your undergraduate degree? A) the cost-of-living expenses, such as rent and food, while you are in graduate school B) the cost of tuition C) the lost income you could have earned by working rather than staying in school D) the cost of books and other supplies required for your graduate studies

I was having trouble with #2c I calculated . Please assist

Plz solve both part CASE STUDY: Brian is a 22-year old university graduate having just secured a government job earning $50,000/year. He does not percieve there to be much risk to him keeping the job long into the future. In trying to make some decisions around his financial future she deliberates the following:   1) HUMAN CAPITAL - What discount rate would you use in calculating Brian's gross human capital? Please explain your reasoning for this, both on how you derived the appropriate dscount rate to be used and WHY. Hint: You will need this for answer #2   2) What is the present value of Brian's lifetime human capital, if he plans to work until age 65? Assume he gets his first paycheck at the end of his first month of work and is paid monthly.

Suppose you are 28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. 1. If the financial market is informationally efficient, then you, as an investor, on average, should earn a. only zero return b. positive normal return and zero abnormal return zero rormal return and positive abnormal return d. positive normal return and positive abnormal return in the long run. c. 2. Suppose you believe that the security market is efficient in the semi-strong form. Which of the following statements is correct? a. Day trading is good because it may consistently beat the market and it saves transaction costs and taxes. b. Day trading is not good because it cannot consistently beat the market and it involves high transaction costs and taxes. c. Day trading may consistently beat the market, but it involves high transaction costs and taxes. d. Day trading cannot consistently beat the market, but it saves…

please help me

Lokalalo is a company helping  families redesign their homes. The balance date is 31 August. QUESTION: Lokalalo has plenty of customers, who because of the nature and price of the work these customers are typically given a month to pay for the work. At 31 August 2020, Lokalalo has $1,500,000 in accounts receivable. Lokalalo anticipates that 10% of their customers will default and not pay at all. What value will the accounts receivable (debtors) be recorded for in the balance sheet on 31 August and why?

Kindly assist on questions below. (1) A person has wealth of $ 40000. If they have an accident they mush spend $ 30000 on car repairs. Their utility function is given by U = w1/2 where w is equal to their wealth . They do not get into an accident with 90% chance and they get into an accident with 10 % chance. What is the total fair premium for full insurance for this person. (2) Risk pooling can decrease risk if: a) Risks are independent b) risks are dependent c) enough people pool their risk d) if the amount if risk is small enough  e) if people have different risk preferences

If the price of attending Big Benefits University is $8,000 a year for tuition, fees, books, and and $25,000 in foregone earnings, what is the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate? If the average college graduate makes $38,000 more every year than the average high school graduate, what is the cumulative marginal benefit of a college education if the average college graduate works for 40 years, assuming a 3% inflation rate? c.In this scenario does it make sense to go to college, explain your answer.

You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $110,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child’s college education. Currently, college tuition, books, fees, and others cost $20,000 per year. On average, tuition and other costs have historically increased at a rate of 6% per year. Assume the first college payment is made at the beginning of year 19 (i.e. immediately after the child’s 18th birthday).   a) Assuming that college costs continue to increase an average of 6% per year, how much will the first college payment be? b) Assuming all college savings are invested in an account paying 8% interest, then what is the amount of money they will need to have available at age 18 to pay for all four years of the child's undergraduate education? c) How much does the couple need to save every year until their child’s 18th birthday to achieve their goal, assuming they make their first savings payment on their child’s first birthday, the last one on…

Subject :- Accounting    You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $85,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}

For some reason I can not get my numbers right for this. Can you please explain step by step for the solution. Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $265,000. The rest of the question is below.

Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of​ course, your choice is not purely financial. ​ However, to make an informed decision you would like to know the financial implications of the two alternatives. ​ Let's assume that your alternatives are as​ follows:   If you take the​ "get a​ job" route you expect to start off with a salary of ​$40,000 per year. There is no way to predict what will happen in the​ future, your best guess is that your salary will grow at 5 percent per year until you retire in 45 years. As a law​ student, you will be paying ​$25,000 per year tuition for each of the 3 years you are in graduate school. ​ However, you can then expect a job with a starting salary of ​$75,000 per year. ​ Moreover, you expect your salary to grow by 7 percent per year until you retire 39 years later.   ​Clearly, your total expected lifetime salary will be higher if you become a…

Lokalalo is a New Zealand company helping Kiwi families redesign their homes. The balance date is 31 August.     Lokalalo has plenty of customers, who because of the nature and price of the work these customers are typically given a month to pay for the work. At 31 August 2020, Lokalalo has $1,500,000 in accounts receivable. Lokalalo anticipates that 10% of their customers will default and not pay at all. You are a student studying BUS 114 and have been approached by Paulo Jr. the managing director to answer his following questions. What value will the accounts receivable (debtors) be recorded for in the balance sheet on 31 August and why?

A 40 year old man in the United States has a 0.199% risk of dying during the next year. An insurance company charges a premium of $429 pays a $166,010 death benefit. What is the expected gain or loss to the man when for a life-insurance policy that purchasing the insurance policy? Hint: Calculate the expected loss of the premium if the man survives (always a negative value), then subtract the premium from the death benefit and calculate the expected gain to the beneficiarles if the man dies (always a positive value), and then add these two numbers to find the net result. A negative net result should be entered as a negative value In the box below. Note: Please avold rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

The Hentys are considering buying a house and are researching the potential costs. Their adjusted gross income is $130,500. The monthly mortgage payment for the house they want would be $1,400. The annual property taxes would be $10,400. The homeowner’s annual insurance premium is $975. Will the bank lend them the money to purchase the house? Use a threshold of 28% front end ratio of monthly housing expenses to monthly gross income.  YES- (21.6%)

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Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of​ course, your choice is not purely financial. ​ However, to make an informed decision you would like to know the financial implications of the two alternatives. ​ Let's assume that your alternatives are as​ follows:   If you take the​ "get a​ job" route you expect to start off with a salary of ​$35,000 per year. There is no way to predict what will happen in the​ future, your best guess is that your salary will grow at 4 percent per year until you retire in 44 years. As a law​ student, you will be paying ​$30,000 per year tuition for each of the 3 years you are in graduate school. ​ However, you can then expect a job with a starting salary of ​$75,000 per year. ​ Moreover, you expect your salary to grow by 8 percent per year until you retire 38 years later.   ​Clearly, your total expected lifetime salary will be higher if you become a…