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3 years ago

Increasing your 401k deduction will your take-home pay and __ your federal taxes in the current year.

1 answer:

3 0

Answer: Decrease your take-home pay and decrease your federal income taxes in the current year. A 401k allows you to deduct earnings from your current income, and put that money in an account that cannot be opened until around retirement. The money put into a 401k, and the returns earned on that money through interest or investments, is not taxed as income until you take it out after retirement. This means that, when you put some of your earnings in a 401k, your take-home pay is lower for that year (you can't spend that money) and your income tax is reduced.

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Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $

sveta [45]

Answer:

Total FV= $1,220,441.33

Explanation:

First, we need to calculate the value of the $200 for 20 years. To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

A= 200

n= 20*12= 240

Intertest rate= 0.07/12= 0.005833

FV= {200*[(1.005833^240) - 1]} / 0.005833

FV= $104,180.27

Now, the value of the $300 for 30 years. At the same time, the future amount of the first investment. Each one with its separate formula. 

$300 monthly investment:

n= 300*12= 360

FV= {300*[(1.005833^360) - 1]} / 0.005833

FV= $365,962.41

$104,180.27 investment:

FV= PV*(1+i)^n

FV= 104,180.27*(1.005833^360)

FV= $854,478,92

Finally, the total FV:

Total FV= 854,478.92 + 365,962.41

Total FV= $1,220,441.33

6 0

3 years ago

Question 3 of 10

Bad White [126]

Answer:

B. Overconfidence

Explanation:

7 0

3 years ago

Read 2 more answers

A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this

Viktor [21]

The question is missing the options and is incomplete. The q=complete question is,

A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will:

a. both decrease

b. both increase

c. remain the same and decrease, respectively

d. increase and remain the same, respectively

Answer:

The correct answer is option D as the current ratio has increased while the working capital has remained the same.

Explanation:

The current ratio is calculated by dividing the current assets by the current liabilities. The formula for current ratio is,

Current ratio = Current assets / current liabilities

The old current ratio was,

Current ratio = 70000 / 50000 = 1.4

After the transaction, the new current ratio is,

Current ratio = (70000 - 1000) / (50000 - 1000) = 1.408

Thus, as a result of the transaction, the current ratio has increased.

The working capital is the difference between the value of current assets and the value of current liabilities.

The formula to calculate the working capital is,

Working capital = Current assets - Current liabilities

Old working capital = 70000 - 50000 = $20000

The new working capital = 69000 - 49000 = $20000

Thus, the working capital remain unchanged after the transaction.

5 0

3 years ago

Determining Net Cash Flow from Operating Activities: Burch Company reported the following items in its balance sheet and income

Tanya [424]

Answer:

$9,000

Explanation:

The cash flow statement is the financial statement where the cash flows from the various activities of a business are recorded. These activities include Operating, Investing and Financing. The statement may be shown using gthe direct or indirect method.

The operating activities include the changes to current assets and liabilities. Increases in assets (apart from cash) represents an out flow of cash while increases in liability represents and in flow of cash and vice versa.

The net cash flows from operating activities using the indirect method

= -5000 - 20,000 + 10,000 + 25,000 - 1,000 (all amounts in $)

= $9,000

This represents a net inflow.

3 0

4 years ago

in contrast to development, which occurs at higher levels in an organization, involves teaching employees how to perform their j

Sever21 [200]

Education and improvement check with educational sports within an organization created to beautify the knowledge and competencies of personnel even as providing information and coaching on the way to better perform unique tasks.

There are primary alternatives for supervising employee schooling and development in an agency: with the aid of HR or Operations. usually, education and improvement fall beneath the HR branch. But, within the case of HR-owning employee training and development, there is a hazard of disconnection of schooling from a business.

Offering training and improvement to personnel allows employers to pinpoint the know-how and competencies they want their personnel to have. education and development programs can teach personnel about new skills or offer updates on present abilities to enhance productivity.

Learn more about organization here: brainly.com/question/24660606

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8 0

1 year ago

Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.

Increasing your 401k deduction will your take-home pay and __ your federal taxes in the current year.