1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SashulF [63]
3 years ago
13

Kathleen just received a bonus from EG. She is excited because her dad started his career with EG. If her bonus of $300,000 is e

quivalent to the bonus paid to her dad 10 years ago, how much was her dad’s bonus? Assume that the average annual inflation rate was 3.8%. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Business
2 answers:
Paha777 [63]3 years ago
8 0

Answer:

$206,608.28

Explanation:

in order to determine how much is Kathleen's bonus worth in equivalent dollars 10 years ago, we need to use the present value formula:

  • present value = ?
  • future value = $300,000
  • n = 10
  • r = 3.8%

present value = future value / (1 + r)ⁿ = $300,000 / (1 + 0.038)¹⁰ = $300,000 / 1.452 = $206,608.28

If her dad's bonus was equivalent to hers, then it should have been around $206,608.28.

Alenkinab [10]3 years ago
7 0

Answer:

=$206,608.28

Explanation:

<em>Inflation erodes the value of money,  so to determine the real value of any given amount (nominal) we need to adjust it for infalton.</em>

In the same vein, to calculate her dad's bonus 10 years ago,  we will have to determine the real value of $300, 000 using the annual  inflation rate.

This is determined as follows:

Real bonus = 300,000/1.038

                   =  $206,608.28

The value of her dad's bonus 10 years ago

                  =$206,608.28

You might be interested in
If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.
Romashka [77]
The answer is Contractionary and Decrease
6 0
2 years ago
In 1969, don bought a dodge dart for $2,500. he drove this car until 2003 when he bought a honda civic for $18,000. if the price
nexus9112 [7]
Close to around 15,000?
3 0
3 years ago
Identify how changes within an organization affect the OM strategy for a company. For​ instance, discuss what impact the followi
Ierofanga [76]

Answer:

a. Maturing of a product

When the product reaches its maturity stage, its sales volume reduces considerably. This would require different marketing strategies like product enhancement, price changing or developing new designs, etc.

b. Technology innovation in the manufacturing process

This will cause many changes in the strategy as technological innovation would reduce manual labor cost. Also, the organization would need skilled employees to deal with the new technology.

- Cost cutting is instituted.

- Product changes decrease.

- Design compromises are instituted.

- Labor Skills decrease

- Optimum capacity may be achieved

- Manufacturing process stabilizes

6 0
3 years ago
Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How mu
Stels [109]

Answer:

$8000 (increased)      

Explanation:

Given:

Current sales = $600,000

Variable cost = 80% of Sales = $600,000 x 80% = $480,000

Fixed cost = $130,000

Computation of current Operating Income :

= Current sales - Variable cost - Fixed cost

= $600,000 - $480,000 - $130,000

Net Income = -$10,000

Computation of Operating Income(After new sales) :

= New sales - New Variable cost - Fixed cost

= ($600,000 + $40,000) - 80% of ($600,000 + $40,000) - $130,000

= $640,000 - $512,000 - $130,000

Net income after new sales = - $2,000

Change in income = Net income after new sales - Net Income before new sales

= -$2,000 - (-$10,000)

= $8000 (increase)      

5 0
3 years ago
Company Earnings per Share Market Value per Share 1 $ 11.00 $ 176.00 2 8.00 78.40 3 6.00 77.40 4 35.00 203.00 Compute the price-
babymother [125]

Answer:

16

9.8

12.90

5.8

Explanation:

The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm

price to earning ratio = market value per share / earnings

1 = 176/11 = 16

2. 78.40 / 8 = 9.8

3. 77.40 / 6 = 12.90

4. 203/35 = 5.8

3 0
3 years ago
Other questions:
  • You are opening up a brand new retail strip mall. You presently have more potential retail outlets wanting to locate in your mal
    6·1 answer
  • An airline company would like to easily locate lost luggage. What technology would make it easier for them to locate the luggage
    6·1 answer
  • Shaffer Company presents the following data for 2012. Net Sales, 2012 $3,007,124 Net Sales, 2011 93,247 Cost of Goods Sold, 2012
    13·1 answer
  • Organizations and activities that are close to the end customer in a supply chain are said to be _______, while organizations an
    9·1 answer
  • An owner of a large ranch is considering the purchase of a tractor with a front-end loader to clean his corrals instead of hirin
    14·1 answer
  • Following are the accounts and balances from the adjusted trial balance of stark company
    7·1 answer
  • Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constr
    8·1 answer
  • (1 pt) The manager of a large apartment complex knows from experience that 90 units will be occupied if the rent is 420 dollars
    10·1 answer
  • A sales forecast based on an estimate of total market potential for a specific market and projecting the market share a business
    9·1 answer
  • Bramble Corp. purchased land as a factory site for $1305000. Bramble paid $121000 to tear down two buildings on the land. Salvag
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!