Remy works at a small shop and earns $15.293 a year. She enrolled and was accepted in a university. To focus on herschoolwork, she quit her job. Her annual expenses during her undergraduate education are $12,718 for tuition, $1,118 forbooks, and $5,644 for food. She spends the same on food as before she went to college. Assuming that the given values are inconstant dollars, what is her real opportunity cost of attending college for 3 years? Round your answer to the nearest twodecimal place and remove the dollar sign.

Opportunity cost is the potential earning from one alternative when individual chooses another over…

Answered: Remy works at a small shop and earns…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parents wanted to save enough money to send their daughter to college. The parents were unable to save money right at birth but rather started saving money when she was 5 years old and will save until she is 18 years old. The parents would like to save up $75,000 to cover tuition and other expenses. How much would the parents need to save each month in order to meet this requirement Assume the parents save the money into an account that generated an interest of 2% per year O a $360 O b. 3370 Oc$400 Od $490
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Amy makes her first $15,000 payment into a conservative savings plan, earning 8% per year into her savings account when she is 28 years old. After the 10th payment, Amy makes no additional payments nor does she withdraw any money from the account. One of Amy's friends, Frank, starts a savings plan that is identical to Amy's when he is 38 years old (Frank's account also earns 8% per year). He continues making $15,000 annual payments until he is 60 years old. If both Amy and Frank retire when they are 60 years old, who will have more money in their savings plan at that time?
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