New parents wish to save for their newborn's education and wish to have $37,000 at the end of 17 years. how much should the parents place at the end of each year into a savings account that earns an annual rate of 8.4% compounded annually? (round your answers to two decimal places.)$ how much interest would they earn over the life of the account? $ determine the value of the fund after 10 years.$ how much interest was earned during the 10th year? $

Answer and Explanation:

Given:

Amount that parents wish to have is future value = $37,000

Time period (nper) = 17 years

Rate = 8.4% or 0.084

Use spreadsheet function =pmt(rate,nper,FV) to compute yearly payment to savings account.

New parents need to deposit $1,057.14 at the end of every year.

Interest earned during 17 years = FV - (annual payment × 17)

                                                    = 37,000 - (1057.14×17)

                                                     = $19,028.62

Interest earned during 17 years is $19,028.62

Value of fund after 10 years is future value of fund which can be computed using spreadsheet function =FV(rate,nper,-pmt)

nper is 10 years

Value of fund after 10 years is $15,608.31

In order to compute interest earned during 10 year, first future value of fund in 9th year need to be computed using spreadsheet function =FV(rate,nper,-pmt)

nper is 9 years

Value of fund after 10 years is $13,423.59

Interest earned = Value of savings in 10th year - Value of savings in 9th year - amount deposited in the 10th year

= 15,608.31 - 13,423.59 - 1,057.14

= $1,127.58

Interest earned in 10th year is $1,127.58

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.