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Jet001 [13]
3 years ago
14

After earning an MBA, a student begins working on an $80,000 per year job on 9/1/18. She expects to receive a 5 percent raise ea

ch year until she retires on 9/1/48. If the cost of capital is 8% per year and she is paid monthly, determine the total present value of her before tax earnings. Assume she is paid at the end of each month and each annual raise takes effect on Sept 1 each year.
Business
1 answer:
kondor19780726 [428]3 years ago
7 0

Answer:

since there is not enough room here, I prepared a long excel spreadsheet to calculate the present value of her monthly salaries.    

her initial monthly salary is $6,666.67, total salaries earned = 12 salaries x 30 years = 360 salaries

the discount rate = 8% / 12 = 0.667% or 0.00667

the present value of the salaries earned during 30 years = $1,520,375.10

Explanation:

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All of the following are advantages of having a savings account except
expeople1 [14]

Answer:

Funds held in a savings account are highly liquid

Explanation:

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Financial institutions that offer savings account limit on withdrawals to help a customer achieve planned saving objective. It means money saved is not accessible at will. Penalties apply should a customer insists on more than the acceptable number of withdrawals.

5 0
2 years ago
What's the difference between current balance and available balance?
pickupchik [31]
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3 years ago
Shyla conducted an experiment. she went to the student union and asked people if they would like to be subjects in her study. sh
Assoli18 [71]
No!
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She should ask people on some sort of other scale that is more random.
7 0
3 years ago
A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site an
Olin [163]

Answer:

a) should install the solar cells

alternative 1, solar cells

initial investment $18,000

annual expenses $2,400 (5 years)

NPV =  $27,097.89

AW = (10% x $27,097.89) / [1 - (1 + 10%)⁻⁵] = $7,148.36

alternative 2, power line

initial investment $27,500

annual expenses $1,000 (5 years)

NPV =  $31,290.79

AW = (10% x $31,290.79) / [1 - (1 + 10%)⁻⁵] = $8,254.43

b) $23,307.10

3 0
2 years ago
Will the grading period effect what college you will go to later on?<br> A (True)<br> B (False)
Kobotan [32]

Answer: A

Explanation:

8 0
2 years ago
Read 2 more answers
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