Steve and Ed Are Cousins Who Were Both Born on the Same

question 149

Multiple Choice

Steve and Ed are cousins who were both born on the same day,and both turned 25 today.Their grandfather began putting $2,100 per year into a trust fund for Steve on his 20th birthday,and he just made a 6th payment into the fund.The grandfather (or his estate's trustee) will make 40 more $2,100 payments until a 46th and final payment is made on Steve's 65th birthday.The grandfather set things up this way because he wants Steve to work,not be a "trust fund baby," but he also wants to ensure that Steve is provided for in his old age.
​
Until now,the grandfather has been disappointed with Ed,hence has not given him anything.However,they recently reconciled,and the grandfather decided to make an equivalent provision for Ed.He will make the first payment to a trust for Ed today,and he has instructed his trustee to make 40 additional equal annual payments until Ed turns 65,when the 41st and final payment will be made.If both trusts earn an annual return of 8%,how much must the grandfather put into Ed's trust today and each subsequent year to enable him to have the same retirement nest egg as Steve after the last payment is made on their 65th birthday? Assume that all payments are made at the end of the year.

• A) $2,660
• B) $3,255
• C) $3,067
• D) $3,129
• E) $3,036

Acknowledge the impact of socioeconomic status (SES) on cognitive abilities such as mental rotation.

Evaluate the influence of cognitive style (e.g., field independence, field dependence) on performance.

Comprehend the effect of age on gender differences in cognitive abilities.

Distinguish between different types of cognitive abilities and their relation to gender.

---

Definitions:

Prior Period Costs

Costs that were incurred in a previous reporting period and may be carried over into the current or a future period.

Job-Order Costing System

An accounting method that accumulates costs based on individual jobs or orders, suitable for companies producing unique or custom products.

Homogeneous Product

A product that is uniform in quality and specifications among units produced, making it indistinguishable from products of the same type.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the weighted average cost of all similar goods available during the period.