Answer:
Instructions are listed below
Explanation:
Giving the following information:
Suppose you wish to retire 35 years from today.
You determined that you will need $250,000 per year after you retire.
You will need to make 28 withdrawals.
You can earn 5% per year on your retirement funds.
Final value= 250000*28= $7,000,000
i= 0.05
n=35
A) We need to find the present value of the 7 million:
PV= FV/(1+i)^n
PV= 7,000,000/(1.05^35)= $1,269,032
B) We need to find the annual payment to reach the final value.
FV= {A*[(1+i)^n-1]}/i
A= annual payment
<u>isolating A:</u>
A= (FV*i)/{[(1+i)^n]-1}
A= (7000000*0.05)/[(1.05^35)-1]
A= $77501.95
Explanation:
1- Hire an organizational consultancy specialized in diagnostics and solutions to improve the organizational culture, as an external view can be beneficial to perceive the organization free of bias.
2- Planning of the teams' routine and better redesign and definition of the functions of each employee, seeking greater integration and personal satisfaction with the work, which increases productivity and the valorization of the work.
3- Implementing changes in the way of communicating with the teams and providing feedback, clear and objective communication is essential for there to be a correct understanding of what is expected of each team and how to carry out the tasks to achieve the organizational objectives and goals.
An CPI can be said as an index which measures the prices of "market basket" of some 300 good and services that is assumed to be fixed and the services are brought by a "typical" consumer.
Explanation:
1)<u>How does the Bureau of Labor Statistics (BLS) calculate the rate of inflation from one year to the next?</u>
The Consumer Price Index is an index which measures the prices of market basket of goods and services and it is used by the Bureau of Labor to calculate the rate of inflation, using the price of the basket from the current year divided by the base year, then multiplied by 100.
<u>2)What effect does inflation have on the purchasing power of a dollar?</u>
Inflation lowers the purchasing power of the dollar and it basically occurs when the market basket of goods is priced positively with reference to the rate of inflation.
<u>3) How does it explain differences between nominal and real interest rates</u>
A real interest rate is an interest rate that takes into account the effects of inflation in order to reflect the real cost of funds to the borrower and the real yield to an investor. A nominal interest rate refers to the interest rate that is calculated before taking the effects of inflation into account.
<u>4)How does deflation differ from inflation?</u>
Deflation occurs when the rate of inflation is negative.
They should sell the info and make that cash cash money
Answer:
The Journal entries are as follows:
1.
Service Cost A/c Dr. $22
Interest cost A/c Dr. $15
To Expected return- Plan Assets $9
To Pension expense $28
(To record the pension expense for 2018)
Workings:
Expected return- Plan Assets = 12% of plan assets
= 0.12 × $75
= $9
2.
(i) Pension Expense A/c Dr. $28
Plan Assets (expected return on plan assets) A/c Dr. $9
To PBO (22 service cost + 15 interest cost) $37
(To record pension expense)
(ii) Plan assets A/c Dr. $22
To cash $22
(To record the funding)
(iii) PBO A/c Dr. $8
To plan assets $8
(To record PBO or plan assets)