Answer:
Carol should save $672 per month.
Explanation:
Savings is the process of setting aside some part of one's income for the sake of an emergency or for retirement purposes. The best way to budget one's income by economists is: to save at least 20 %, a maximum of 50% should be spent on necessities and the remaining 30% should go towards discretionary items. In our case Carol can budget her income as follows;
<em>Step 1: Determine annual savings</em>
S=20%×N.I
where;
where;
S=savings
N.I=net income
In our case;
S=unknown
N.I=$40300 a year
replacing;
S=(20/100)×40,300
S=(0.2×40,300)=$8,060
<em>Step 2: Determine monthly savings</em>
Monthly savings=annual savings/number of months in a year
where;
Monthly savings=unknown, to be determined
annual savings=$8,060
number of months in a year=12
replacing;
Monthly savings=(8,060/12)=$672 per month
Carol should save $672 per month.
Answer:
Casey would prefer option 1; that he pays the premiums ($8,000). Even if Casey cannot deduct his insurance premiums as medical expenses, his income will only be reduced by $8,000. If he decided to take option 2, his income would be reduced by $8,800 (= $10,000 - 12%), so he is saving $800 by taking option 1.
On the other hand, Jean would prefer option 2; that her salary is reduced by $10,000 and her employer pays the premiums. By choosing option 2, Jean is going to lose $6,500 (= $10,000 - 35%). If she chose option 1, her income would be reduced by $8,000, so she is saving $1,500 by choosing option 2.
Answer: a. Have his mom co-sign for a credit card this year, and then Carson pays all of bills on-time and in full every month
Explanation:
Credit scores show how trustworthy a person is when it comes to paying back their debt and so there is no better way to build this score than to incur some debt and pay it back on time.
This is why credit cards are the most convenient way to increase credit scores. Seeing as Carson most probably has no credit history, it would be best if he co-signed on a credit card with his mom and then paid every bill o time and in full.
This would increase his credit score enough by the time he graduates.
The answer is promotional pricing! Hope this helps!
Answer: $18,128.27
Explanation:
Real interest rate = [( 1 + Nominal rate ) / ( 1 + inflation rate)] - 1
= [(1 + 13%) / ( 1 + 4.4%) ] - 1
= 8.2375478927203065134%
This is dealing with the future value of an annuity where $5,000,000 is that future value.
Future Value of an annuity = Amount * {[((1 + r )^n) - 1] / r}
5,000,000 = Amount * {[((1 + 8.2375478927203065134%% )^ 40) - 1] / 8.2375478927203065134%}
5,000,000 = Amount * 275.81229325572622843153903061969
Amount = 5,000,000/275.81229325572622843153903061969
= $18,128.27
