Step-by-step explanation:
To determine the future value for the 401(k), we need to determine the amount contributed annually. It is stated that the amount the employee contributes to the fund is 9% of $45,624. $45,624(0.09) = $4,106.16 The employer contributes a maximum of 3% of the employee contribution. Therefore: $45,624(0.03) = $1368.72. Therefore, the total annual contribution is $5,474.88, giving a future value of $196,302.40. For the Roth IRA, the monthly contributions are $352.45 giving a future value of $152,636.09. Therefore, the 401(k) has a greater future value by $43,666.31.
Mental math I'd split it up and simplify it first.
8 × 25 is 4 × 25 two times. So 100 times anything is just the number plus two zeros usually so
8 × 25 × 23
100 × 23
2300 2300 Is the answer
3,000 is the answer because when looking for a commission you multiple the sales earning times the percentage but in this case you do the opposite. You divde Phillipes earning by the 12% to get the amount of sales earning you need.
Answer:
Project A :
NPV : $703,888.64
IRR : 44.882%
Project B:
NPV : $5,241.26
IRR : 49.662%
Project B is more profitable
Step-by-step explanation:
The NPV gives the difference between the present value of cash inflow and cash outflow over a certain period of time.
The Internal rate of return is the discount rate which makes the NPV of an investment 0. It is used to estimate the potential return on an investment. Investments with higher IRR are said to be better than those with lower IRR value.
Using the net present value, (NPV) Calculator, the NPV for project A is : $703,888.64
The IRR of project A is : 44.882%
The NPV for Project B is : $5,241.26
The Internal rate of return (IRR) : 49.662%
From the Internal rate of return value obtained, we can conclude that, project B is more profitable as it has a higher IRR than project A.
