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harina [27]
3 years ago
13

Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 198

0, of 2300 dollars into an account that pays an effective rate of interest of 8.4 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.35 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal
Business
1 answer:
worty [1.4K]3 years ago
7 0

Answer:

$16,876

Explanation:

first we have to calculate how much money Irene saved until January 1, 2001:

P = PMT ×   [(1 + r)ⁿ - 1] / r

  • PMT = 2,300
  • r = 8.4%
  • n = 22

P = 2,300 ×   [(1 + 8.4%)²² - 1] / 8.4% = $134,089

if she stops making any more payments, in 19 years those $134,089 will be worth:

FV = PV x (1 + r)ⁿ

  • PV = $134,089
  • r = 8.4%
  • n = 19

FV = 134,089 x (1 + 8.4%)¹⁹ = $620,797

that means she still needs to get $1,350,000 - $620,797 = $729,203

we can use the first formula to determine the payments she will need to make during the next 19 years:

P = PMT ×   [(1 + r)ⁿ - 1] / r

  • P = 729,203
  • r = 8.4%
  • n = 19
  • PMT = ???

PMT = P /  {[(1 + r)ⁿ - 1] / r}

PMT = 729,203 / {[(1 + 8.4%)¹⁹ - 1] / 8.4%} = 729,203 / 43.21 = $16,876

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Answer:

(A)The theory applied by the manger is refereed to as the Vroom's expectancy. it was made to inspire Laura to perform better in her place of  work, for this she was promoted duw to her performance and zeal to work.

(B) The motivational factors of Herzberg and Maslow's esteem and self actualization are very close.

Maslow's esteem and actualization focused on employee motivation towards work. while Herzberg motivational factor where more of recognition, achievement, prestige and status.

Explanation:

Solution

(A) The theory used by manager is called the Vroom’s expectancy m which was used to inspire Laura.

Laura put in a great amount of work towards  developing her sales relationship which showed in desired output.

For this performance, she was promoted to the level of Customer Manager at Head Office. (Expectancy)

This made her move into marketing field though she was initially  an assistant Brand Manager but later became the Brand Manager. (Instrumentality).

Her desire to move from Sales to marketing was possible in the end (Valence).

(B) The factors of Herzberg's motivation and Maslow's self-actualization and respect needs are considered very close.

The motivating factors initiated by Herzberg are job elements as responsibility, recognition, achievement, and growth. this was all centered on employee motivation and satisfaction

With regard to Maslow’s respect and self-actualization needs which focused on motivating employee into work. esteem needs centered on status, prestige,and recognition. Self-actualization is called an achievement that us supreme where a person or individual  creates an impact that is seen as positive or beneficial to the society.

5 0
3 years ago
Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospit
Alexandra [31]

Answer:

a. The Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

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Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. The Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. The cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Explanation:

a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?

Note: See part a of the attached excel file for the calculation of Before Tax Compensation for each of the two classes of employees.

From part a of the attached excel, the Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?

Note: See part b of the attached excel file for the calculation of Employer's after tax cost of taxable compensation.

From part b of the attached excel, the Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:

Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. What is the company’s after-tax cost of the exempt compensation?

Note: See part c of the attached excel file for the calculation of Employer's after tax cost of exempt benefit.

From part c of the attached excel, the Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. Briefly explain your conclusions from the preceding analysis.

Comparing employer's after tax cost of exempt benefit in comparison and employer's after tax cost of taxable compensation, it can be seen that cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Download xlsx
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When total production is greater than total expenditures, __________ is produced than households want to buy, which leads to ___
Tom [10]
If the total production exceeds the total expenditures this means that there are more goods are produced than the demand of each households. Thus, this will lead to an increase of inventory. Then this will signal the manufacturing firm that they have overproduced the goods which will lead to cut back the production. This leads to lesser prices and/or unsold goods alongside with the likelihood of unemployment. Therefore the answer is d.
6 0
3 years ago
Assume that the money demand function is (M/P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M is 2
liubo4ka [24]

Answer: The nominal money supply should set at 1,600.

Explanation:

Given that,

Money demand function: (M/P)d = 2,200 – 200r

r - Interest rate

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Money supply = money demand

(\frac{M}{P})^{s} = (\frac{M}{P})^{d}

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P = 2 and r = 7%

\frac{M}{2} = 2,200 – 200 × 7

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Leni [432]

Answer:

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The contribution margin must be $2.5, so if the production costs are $7.15, we just add $2.5 to get $9.65 per unit.

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3 years ago
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