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hichkok12 [17]
3 years ago
7

Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must.

First, consider Lisa’s savings. She began working at age 20 and began making an annual contribution of $2,000 at the first of the year beginning with her first year. She makes 13 contributions. She worked until she was 32 and then left full time work to have children and be a stay at home mom. She left her IRA invested and plans to begin drawing from her IRA when she is 65. Bob started his IRA at age 32. The first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $2,000 contribution to an IRA, and contributed $2,000 every year up until age 65, a total of 33 years / contributions. He plans to retire at age 65 and make withdrawals from his IRA. Both IRA accounts grow at a 7% annual rate. Do not consider any tax effects. Write a two to three (2-3) paragraph summary in which you: Create a chart summarizing the details of the investment for both Bob and Lisa. Explain the results in terms of time value of money.
Business
1 answer:
ikadub [295]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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When considering the impact of institutions and policies on economic performance, it is most important to focus onA. long-term e
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Answer: The correct answer is choice a.

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3 years ago
Departmentalizing decisions increases the risk of __________ leading to a poor decision.
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Answer:

Bounded Rationality

Explanation:

To begin with, it is essential to understand the concept of departmentalization.

Departmentalization centers on the idea that departments/divisions within an organization are grouped and/or sectioned, using some identified benchmarks. In extension, Departmentalizing, is simply the acts of engaging in departmentalization.

Bounded rationality, is a phenomenon that states that human reasoning and extension, logic could be threatened by a number of constraints. The constraints here could be human, material and physical resources. The implication is that an individual is not in possession of full details and information that could influence or shape his position.

Hence, by departmentalizing, an organization has placed a constraint on the amount of information accessible to that department, under the bigger context of an organization. Thus, the departments' rationality has been bounded and this could ultimately spiral into poor decision making, principally because of lack of detailed information.

6 0
3 years ago
Read 2 more answers
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead in
scoundrel [369]

Answer:

Hence, closing over  overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000

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Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.

As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.

Over applied overhead = Applied overhead - Actual overhead

                                     = 42,000,000 - 40,300,00 =  1,700,000

Over applied overhead = $ 1,700,000

The adjustment required is to reduce the cost of gods sold by the amount of over-applied overhead because the cost of goods sold figure is would have over charged.

Hence, closing over  overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000 because net income and cost of Goods Sold are inversely related.

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3 years ago
The law of supply states that
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3 years ago
Etmer enterprises has budgeted sales for the next four months as follows: budgeted sales in units january 7,400 units february 4
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Units to be produced in February is calculated as -

Units to be produced in February = February sales + Ending inventory of February - Beginning inventory

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Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units

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Units to be produced in February = 4,600 units + 1,325 units - 1,150 units

Units to be produced in February = 4,775 units

8 0
3 years ago
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