Answer and Explanation:
The computation of the given question is shown below:-
Total Contributions = Monthly contribution + Amount invested in Ferdinand’s 401(k)
= $250 + $125
= $375
1. Future Value = PMT [((1 + r)n - 1) ÷ r
Future value = 375 × ((1 + 0.03 ÷ 12) × 12 × 40 - 1) ÷ (0.03 ÷ 12)
= $347,272
2. Ferdinand deposit = Given Amount × Total number of months in a year × Number of years
= $250 × 12 Months × 40 Years
= $120,000
3. The Amount put in by the employer = 50% of $250 ×Total number of months in a year × Number of years
=
$125 × 12 Months × 40 Years
= $60,000
4. Interest = Future value - Ferdinand deposit - The Amount put in by the employer
= $347,272 - $120,000 - $60,000
= $167,272
We simply applied the above formulas
Answer:
Fixed cost in an organization does not change and is fixed while the variable cost keep changing if the production is increased.
Explanation:
Fixed cost are said to be that cost which does not change with production level for a certain limit. Let us suppose there is no change in the rent amount if we have only factory for the production of goods.
But the variable cost are those cost which increases as production increases. More will be the variable cost when the production will be more. Also for per unit basis, the variable cost remains the same.
Fixed cost are not important in decision making if there is an excess of capacity available.
For example,
Direct labor, direct material -- variable cost
Salary of supervisor, rent of factory -- fixed cost
Even though there is not much change in the variable cost, like for suppose material price increases, a company can still make a budget that is based on the past experience and predicting the market prices. Similarly, if there is a machine that uses three units of direct material for a piece if finished product, which is not going to change in the future. Thus the company can make a budget.
If the A.P.R. for a specific card is set at 9.99% - 23.99%, it shows the range of the A.P.R bank is offering for the card. It means the A.P.R. can be any % between 9.99% and 23.99%. The A.P.R. is decided on the basis for the credibility of the borrower. The credit score of the borrower is the factor to determine the credibility of the borrower. Hence the A.P.R of the card is determined on the basis of the credit score of the borrower.
Hence, the correct answer is:
b. One of the primary factors determining your card's A.P.R. is your credit score
Answer:
The outflow of cash in respect of rent is $270,000
Explanation:
The task is compute cash outflows on rent in the year 2018.
The prepaid rent at the end of 2017 relates to rent expense but was paid last year hence should be deducted from rent expense in the year,
On the other hand , the prepaid expense for 2018 was paid during the year hence should be added to rent expense in order to cash cash outflow relating to rent expense
Rent expense $259,000
Prepaid rent 2017 ($94,000)
prepaid rent 2018 $105,000
Cash paid in 2018 $270,000
Ultimately the outflow of cash in respect of rent in the year is $270,000
