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erastovalidia [21]
3 years ago
10

You are considering a job that offers a pension of 80% of your highest yearly salary prior to retirement. You expect your highes

t yearly salary will be $70,000. What amount of savings, earning 5% per year, would you need to save in order to match the income from the pension?
Business
1 answer:
lara31 [8.8K]3 years ago
7 0

Answer:

1,120,000 dollars

Explanation:

The pension income is 80% out of current salary of 70,000 dollars, therefore 56,000 dollars. For this to be future retirement stream savings must be at a level of 1,120,000 dollars or 56,000/0,05. This strategy would assume 5% return on savings or investments and the lifestyle in retirement equal to pre-retirement period. This strategy would also assume no additional post-retirement income.

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if the marginal propensity to save is 0.12 the marginal propensity to consume(mpc) is the multiplier is
Vlad [161]

Answer:

If the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

Explanation:

From the question, we are given the following:

mps = Marginal propensity to save = 0.12

The marginal propensity to consume (mpc) and the multiplier can therefore be calculated as follows:

mpc = 1 - mps ........................ (1)

Substituting the values for mps into equation (1), we have:

mpc = 1 - 0.12

mpc = 0.88

Also, we have:

Multiplier = 1 / mps ..................... (2)

Substituting the values for mps into equation (2), we have:

Multiplier = 1 / 0.12

Multiplier = 8.33

Therefore, if the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

8 0
2 years ago
The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted acco
Mrrafil [7]

Answer:

c. auditors and financial statement users.

Explanation:

This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. <em>This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.</em>

6 0
3 years ago
In the Keynesian-cross model, fiscal policy has a multiplied effect on income because fiscal policy: changes income, which chang
Zepler [3.9K]

Answer:

Changes income, which changes consumption, which further changes income

Explanation:

Fiscal policy is an effective technique to control savings, income and consumptions because of its multiplier effect. The first effect of fiscal policy is that it changes income and that change in income leads to a change in consumption because of purchasing power; likewise, due to the change in consumption income changes. So, fiscal policy has a multiplier effect.

5 0
3 years ago
Cafeteria Department Cutting Department Assembly Department Janitorial Department cost allocation $155,000 $31,000 $124,000 Cafe
Mama L [17]

Answer: Assembly Department

Explanation:

Missing part of question is attached below.

Cutting Department

Under the direct method, the Cutting Department is allocated $62,000 of the Janitorial cost and $126,750 of the Cafeteria cost for a total of:

= 62,000 + 126,750

= $188,750

Assembly department

Allocated $248,000 of the Janitorial cost and $42,450 of Cafeteria:

= 248,000 + 42,450

= $290,450

<em>Assembly Department is therefore the department that is allocated the most support department costs under the direct method. </em>

7 0
3 years ago
During which stage of team development do members accept that they are part of a project group but resist the:________ A. Desira
olganol [36]

Answer:

C

Explanation:

and I remember I had that question but I don't remember how to explain it sorry hope it's helps

8 0
2 years ago
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