Quiz 5-Q6

42 years ago the maximum earnings of a worker subject to Social Security tax (SST) was $11,000. The maximum earnings subject to SST now is $117,200. What compound annual increase has been experienced over this 42-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time? The compound annual increase in SST over 42 years is %. (Round to two decimal places.) The increase in SST over 42 years is the 3% annual increase in the consumer price index.

What would be the yearly and monthly amount for all  If monthly net income is 3,732 Gross monthly income is $72,000 yearly income $6,000

udiasirois1122/Xv7zYW5RnILBBINV2A9egx/unit-4-project-tvm-calculator-pdf?pg=7 -Sign- At will focus on these types of savings plans in this portion of the project. The Savings Plan formula is below: Y =_ APR= A = PMT- n = A = Note: This formula assumes that the payment period and compounding period are the same. For example, monthly payments would indicate monthly compounding. Let's work an example with the savings plan formula and the TVM calculator. Example 3 Suppose that Ruby's employer offers a retirement plan. Ruby decides to invest $350 per month into the account. The interest is compounded monthly. Historically, the account has earned 7% APR. How much will be in his account if she retires in 25 years? Fill out the value for each variable, and put a question mark for the value we need to solve for. PMT= $350 25 0.07 12 $283,525.09 ((1+ APR-1) (APR) PMT= regular payment amount (deposit) Y = number of years APR = annual percentage rate (written as a decimal) n = number of times the…

Joe just completed his engineering degree and started to work for an engineering firm. Joe wants to retire early after 30 years working. He plans to invest $5,000 at the end of every year for a 30-year career. If Joe needs $3,954,750 (about $1,400,000 in today's dollars accounting for an expected 3.5% inflation rate) in savings at retirement, what interest rate must the investment earn?

Jack received a $4,000 raise this year; this increased his salary as an associate television producer from $35,500 to $39,500. What percentage increase in nominal income did Jack receive?   14.6 percent 11.3 percent 10.1 percent 8.2 percent

Your workforce in the sales department consist of 30 workers. 10 are baby boomers born between 1945 and 1964, 10 are Generation X born 1965-1980, and 10 Generation Y born 1981-2000. You are installing a computerized system. This will replace the old system of hand written reports and phone call generated leads. This new system will generate sales leads, require all reports to be made on mobile devices and the system will operate 24/7. How do you expect each age group to respond and how do you overcome obstacles?

QUESTION 6: LABOUR COSTS Major Ltd is a company that produces household goods in various departments. It needs to assess whether the hourly recovery tariff has been calculated correctly. The following information is provided for Martina who is an employee of Major Ltd: She works from Monday - Friday (8 hours per day for 5 days). The rate per hour in this company is R75. Holiday bonus equals to 10% of yearly gross salary. The employer makes the following contributions: • Pension fund = R1000 per week • Medical aid = R400 per week • Other contributions = 5 % of yearly gross salary Holiday leave is 3 weeks annually. The company is closed for 10 public holidays and idle time is 5%. Required: Calculate the hourly recovery tariff. Assume that there are 52 weeks in a year. Note: round off all unit costs to TWO decimal places. Show ALL calculations.

Interest inflation and purchasing power

1. Sally Johnson loaned a friend $10,000 at 15% interest, compounded annually. The loan will be paid in four equal end-of-year payments. Sally expects the inflation rate to be 3%. After taking inflation into account, what rate of return is Sally receiving on the loan? Compute your answer to the nearest 0.1%.

Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight off her total. How much loan does Molly need?

Mr. Ali is a self-employed individual is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account after 20 years. A local bank is willing to open a retirement account that pays 8% interest. Mr. Ali expects that his income will increase 6% yearly during his work. What should be size of his first deposit?

An inflation-adjusted pension provides for continuous payments over the next 10 years at the rate of 20,000 e dollars per year t years from now. Suppose the applicable interest rate is 4% p.a. compounded continuously over the next 10 years. Find the present value of this pension, and also find the total dollars that is paid out. PV = Total paid out =

GIVE TWO EXAMPLES ON DEFERRED ANNUITY

how did you get 30.205?

You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $  every month 1.75 6 $30,000

I want to be earning an annual salary of $100,000 when I retire in 14 years. I have been offered a job that guarantees an annual salary increase of 4% per year, and the starting salary is negotiable. What is the lowest salary that I should request in order to meet my goal? (Round your answer to the nearest cent.)

6. A contractor estimates maintenance costs for a new backhoe to be $275 for the first month with a monthly increase of 0.5%. The contractor can buy a 4-year maintenance contract for $18,500 at any point. If the contract is purchased at the same time as the backhoe is purchased, the dealer has offered a 10% discount. Use i=0.75% per month. What should the contractor do?

Omar's current annual salary is $54,000. How much will he need to earn (in dollars) 10 years from now to retain his present purchasing power if the rate of inflation over that period is 2%/year? Assume that inflation is continuously compounded. (Round your answer to two decimal places).

Show the solution of the problem and explain steps on how to solve:  Find the nominal rate which is converted quarterly could used instead of 12% compound monthly? (ans. 12.12% ; ie=12.68%)

The Fly-by-Night finance company advertises a "bargain 6% plan" for financing the purchase of automobiles. To the amount of the loan being financed, 6% is added for each year money is owed. This total is then divided by the number of months over which the payments are to be made, and the result is the amount of the monthly payments. For example, a woman purchases a $10,000 automobile under this plan and makes an initial cash payment of $2,500. She wishes to pay the $7,500 balance in 24 monthly payments: Find the IRR and Effective Annual Interest rate. Purchase price -Initial payment = Balance due, (Po) +6% finance charge = 0.06 × 2 years × $7,500 = Total to be paid .. Monthly payments (A) = $8,400/24 = $10,000 2,500 7,500 900 8,400 $350