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disa [49]
2 years ago
11

Matt Christopher is a 25 year old mechanical engineer earning 60,000 dollars next year. He expects his salary to increase 5% yea

rly until retirement at age 65. If he saves 10% of his salary, and invests his money in a fund earning 9% compounding interest, how much will he have in his retirement fund?
Business
1 answer:
igomit [66]2 years ago
8 0

Answer:

After 40 years of working, and savings 10% of his salary per year, and his retirement account earning a 9% compounding interest rate, Matt should have $3,984,402 in his retirement account.

Explanation:

The reason this number is so high, is that his base salary is quite high ($60,000) and it increases by 5% each year during 40 years. At the end of year 40, his salary should be $402,85 per year. The 9% compounding interest rate is also high, it means that every dollar invested next year will generate $31.41 dollars in 40 years.

I solved this question by preparing a table on excel.

Download pdf
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A decrease in the price of DVD players leads consumers to buy more DVD players. From this information we can conclude that DVD p
Andrej [43]

Answer:

E. None of the above is correct.

Explanation:

3 0
3 years ago
As it turns out, Brian and Sondra's good fortune with the restaurant has caused their competitors to lose business. In fact, Caj
iren2701 [21]

Answer: Brian and Sondra have, done nothing illegal

Explanation:

Brian and Sondra company are totally in their right, they are not directly involved in the poor fortunes of their competitors.

A rise in sales at Brian and Sondra company led to drop in the sales of their competitors leading to closure of their competitors businesses.

5 0
3 years ago
Bird Brain Co. reported net income of $45,000 for the year ended December 31, 2016. January 1 balances in accounts receivable an
Alika [10]

Answer:

Option (A) is correct.

Explanation:

Cash flow from Operating Activities:

=  Net income + (Beginning Accounts receivable - Ending Accounts receivable) + (Ending Accounts payable - Beginning Accounts payable)

= $45,000 + ($23,000 - $22,000) + ($28,000 - $26,000)

= $45,000 + $1,000 + $2,000

= $48,000

Therefore,  Bird Brain's cash flows from operating activities would be $48,000.

5 0
3 years ago
In a company's standard costing system, direct labor-hours are used as the base for applying variable manufacturing overhead cos
BARSIC [14]

Answer:

From this information one can conclude that last period the variable overhead efficiency (quantity) variance was <u>unfavorable.</u>

Explanation:

The variable overhead efficiency variance measures the difference between the actual and budgeted hours worked with respect to standard variable overhead rate per hour.

Variable overhead efficiency variance can be calculated thus:

Actual labor hours less budgeted labor hours x Hourly rate for standard variable overhead

If the time it takes to manufacture a product and the time budgeted for it matches or performs well, the labor efficiency is favorable.

Variable overhead efficiency variance is deemed unfavorable when it takes the company more time than budgeted to produce. This also shows labor efficiency variance was unfavorable.

4 0
3 years ago
Exercise 15-14 Presented below are two independent situations. 1. Flinthills Car Rental leased a car to Jayhawk Company for one
IrinaVladis [17]

Answer:

Part 1

Dr Lease rentals $300........ Expense

Cr     Cash Account $300

Part 2

Dr Leased Equipment $63,536

Cr Finance Lease Liability  $63,536

Explanation:

Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:

Dr Lease rentals $300........ Expense

Cr     Cash Account $300

Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:

Dr Leased Equipment $63,536

Cr Finance Lease Liability  $63,536

8 0
3 years ago
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