If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement?
1 answer:
The logic behind saving for retirement is that the earlier one begins saving for retirement, the lesser amount they will have to save monthly. From the graph given, the answer to how much more you need to invest per month to have $1M at retirement is;
- $140
Assuming a 6% investment on return, the individual will have to save $360 monthly to have $1,000,000 at the retirement age of 67.
If he, however, waits till the age of 25 to begin saving, he will have to save $500 which is $140 more than he would have saved from the age of 20.
So, to save less per month, you need to start at an early age.
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Answer:
Total Material Variance = $1,636 Favorable
Material Price Variance = $2,920 Unfavorable
Material Quantity Variance = $4,556 Favorable
Explanation:
Total Material Variance = Standard Cost - Actual Cost
Standard Cost = Standard units Standard Price
Standard Units = 10,300 2.9 = 29,870 units
Standard cost = 29,870 $6.8 = $203,116
Actual Cost = 29,200 $6.90 = $201,480
Total Material Variance = $203,116 - $201,480 = $1,636 Favorable
Material Price Variance = (Standard Rate - Actual Rate) Actual Units
= ($6.8 - $6.9) 29,200 = - $2,920 Unfavorable
Material Quantity Variance = ( Standard Units - Actual Units) Standard Price
= (29,870 - 29,200) $6.8
= $4,556 Favorable
Final Answer
Total Material Variance = $1,636 Favorable
Material Price Variance = $2,920 Unfavorable
Material Quantity Variance = $4,556 Favorable