Assume that your parents wanted to have saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have saved just in case, how much would they have to save each year to reach their new goal?

Explanation:

1. The payment is a fixed amount so is an annuity. Using the Future value of an annuity factor table, we can find the annuity factor for 18 years at 8%.

Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%

100,000 = Payment * 37.4502

Payment = 100,000/37.4502

= $2,670.21

2. Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%

140,000 = Payment * 37.4502

Payment = 140,000/37.4502

= $3,738.30

How much more would they pay = 3,738.30 - 2,670.21

= $‭1,068.09‬

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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