Answer:
The amount to be deposited each year till retirement = $2,287.31.
Amount needed on the retirement date = $2,343,311.99.
Explanation:
Amount needed on the retirement date in order to support the withdrawals post retirement is $2,343,311.99.
calculated using the PV function of Excel as follows: See the first attached file
The amount to be deposited each year till retirement is $2,287.31.
calculated using PMT function of Excel as follows: See attache file 2
Answer:
I would propose a business process improvement (BPI) where management will analyze business procedures and try to determine which ones can be improved and how they should be improved. The advantage of using BPI is that it focuses on organizing work around business processes and not individual tasks which makes it non-disruptive, and it is also incremental in nature.
Answer:
(D) Property taxes for the first year owned.
Explanation:
Capitalized cost is an added expense of a fixed asset. This is not the price paid for an asset but an additional expense incurred overtime in the form of depreciation or amortization. Excluded in this cost is the property taxes for the first year owned. It is included in the cost basis of the asset.
Answer:
The answer is 3. $27,178.
Explanation:
You have to calculate for each year a new principal to be compounded.
Therefore the formula for next period's principal will be:

Where
is the principal for next period,
is the principal for this period,
r is the interest rate,
D are the deposits made into the savings account at the end of the period. (therefore it will only compound in next period).
The first year the principal will be the graduation gift:

At the end of the second year Jay will have:

The third year:

The fourth year the amount being deposited changes from $3,500 to $5,000:

The fifth year is the last year:

The result is rounded to $27,178.