Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
Answer:
a. 2.23
b. 3.21
Explanation:
a. Answer to Part A
Payback Period = Investment / Annual Cash Inflow
= 250000 / 112115
= 2.23
Answer to Part B
Payback Period = Investment / Annual Cash Inflow
= 200000 / 62375
= 3.21
Working Note
<em>Particulars Case A Case B
</em>
After Tax Income 72115 39000
Add: Depreciation 40000 23375
Cash Inflow 11,2115 62375
<em>Particulars Case A Case B
</em>
Cost of Machine 250000 200000
Less: salvage Value 10000 13000
Depreciable Value 240000 187000
Life of the Asset 6 8
Annual Depreciation 40000 23375
A person who purchases his/her own policy can exclude the benefits from gross income. It's also good to note tat statutory limitations exist for the following amounts:
Benefits that have been collected under the employer's plan
Premiums that have been paid by the employer
benefits that have been collected from the individuals' policy. Therefore the amount Valentino may exclude will be calculated as follows;
Daily statutory amount in 2017 (360*45) $16200
Actual cost of care $13500 $16200
Less: Amount received from Medicare ($8000)
Equal amount of exclusion ($8200)
Thus:
Valentino must include (15000-8200)=$6800 of the long-term care benefits received in his gross income.
Answer: A young lawyer who just finished work on a multimillion -dollar development deal downtown is hired by an economic development firm in lieu of an older lawyer who works on litigation
This is not a case of discriminating against a person because of age, as we can see the young lawyer is better suited for a job in economic development as he already has worked on a development deal, where as the older lawyer is a litigator
A large retail outlet hires an 80-year-old woman to greet customers instead of a 30-year-old woman who has been greeting customers in other stores for a decade
This may be a case of age discrimination, because the 30 year old seems to be the better candidate, because she has experience in this work and will be more energetic than the 80 year old as well
The owner of a local, hip smoothie bar in a university town just fired a graduate student who had worked at the bar for three years and instead hired a college sophomore.
This may be a case of age discrimination because the employer is firing a graduate who has had 3 years of experience and hiring someone who hasn't graduated and has no experience
Explanation:
Should be 21 days but that is not all the time!
