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
Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she de
leva [86]

Answer:

$14,500

Explanation:

The size of Ginny's taxable capital gain = $64,500 - $50,000 = $14,500

Note: Capital gains tax is a tax on the profit realized on the sale of a non-inventory asset.

8 0
4 years ago
A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income  = $400,000

7 0
3 years ago
Service companies and notminusforminusprofit organizations​ ________. A. can use CVP by focusing on measuring the​ organization'
frutty [35]

Answer:

A. can use CVP by focusing on measuring the​ organization's output

Explanation:

Service companies and not-for-profit organizations​ can use CVP by focusing on measuring the​ organization's output.

Cost Volume Profit Analysis bothers on the profitability of company's output, whether it be a product manufacturing company or a service-rendering company.

In the case of a service company, Cost Volume Profit will be computed as: Profit = Service Price - Cost to provide service.

4 0
3 years ago
Read 2 more answers
Management's plan for making money in a particular line of business and the revenue-cost-profit economics of the company's strat
vazorg [7]

Management's plan for making money in a particular line of business and the revenue-cost-profit economics of the company's strategy is Strategic Management.

Strategic Management is the most widely recognized approach to spreading out goals, frameworks, and focuses to make an association or affiliation more serious. Consistently, the fundamental organization looks at effectively passing staff and resources on to achieve these targets.

In business, it is critical because it allows an association to look at districts for useful improvement. Generally speaking, they can understand either a consistent connection, which recognizes likely risks and opens entryways, or simply notice essential standards.

An association could choose to follow either a prescriptive or elucidating method for managing the executives. Under a prescriptive model, frameworks are delineated for development and execution. On the other hand, an elucidating model portrays how an association can cultivate these frameworks.

To learn more about Strategic Management.

brainly.com/question/28102251

#SPJ4

4 0
2 years ago
Last year, a small nation with abundant forests cut down $200 worth of trees. $100 worth of trees was then turned into $150 wort
borishaifa [10]

Answer:

$400

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Inventory grew by (200 - 100) $100

$50 of value was created

total gdp = $100 + $250 + 50 = $400

4 0
3 years ago
Other questions:
  • Sophia's goal is to run her own bakery. What degree might be beneficial for Sophia to pursue in order to reach her goal?
    10·1 answer
  • The table shows the predicted cost of attending an in-state four-year public college 4 years from now. Category Predicted Annual
    10·2 answers
  • Your father invested a lump sum 33 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which
    14·1 answer
  • The proper discount rate when using the dividend discount valuation model is the:
    14·1 answer
  • You are a research analyst in charge of publishing research reports for your company, C-Minus Investment Banking and Research. Y
    10·1 answer
  • MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face va
    15·1 answer
  • XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was
    14·2 answers
  • Assume you are the manager of Assembly, Inc. You have just received an order for 38 units of an industrial robot, which is to be
    5·1 answer
  • Which is an organizational unit that is useful for collecting and aggregating similar data on separate forms?
    15·1 answer
  • If you do have your license: how can you continue your driving improvement?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!