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1. Johnson decides to put 5% of his salary into his retirement plan in addition to the amount put into the plan by his employer. Find the total annual contribution into the retirement plan. 1. 2. Johnson decides to invest his retirement funds in a mutual fund with global stocks that he hopes will yield 8% per year. Find the future value in his account after 12 years. 2. 3. Assume the Mayo Clinic has exactly 55,000 employees and that the average salary per per- son including physicians is $87,300 per year, which includes the cost of health insurance paid by the emplover. Estimate the annual pavroll. 3.

1. Johnson decides to put 5% of his salary into his retirement plan in addition to the amount put into the plan by his employer. Find the total annual contribution into the retirement plan. 1. 2. Johnson decides to invest his retirement funds in a mutual fund with global stocks that he hopes will yield 8% per year. Find the future value in his account after 12 years. 2. 3. Assume the Mayo Clinic has exactly 55,000 employees and that the average salary per per- son including physicians is $87,300 per year, which includes the cost of health insurance paid by the emplover. Estimate the annual pavroll. 3.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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MAYO CLINIC www.mayoclinic.com • 1889: Founded in Rochester, MN MAYO CLINIC • 1987: Expanded to Jacksonville, FL • 2016: Over 50,000 employees • 2018: More than a million patients The Mayo Clinic is the largest integrated, not-for-profit medical group practice in the world. With main facilities in Minnesota, Arizona, and Florida, it is ranked among the best hospitals in the world. Its mission is focused on people: To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research. After getting his two-year degree in radiation therapy and working for three years at a small hospital, Darnell Johnson went to work for the Mayo Clinic at a salary of $63,500. The clinic puts 6% of his salary into his retirement plan and also allows Darnell to contribute up to an additional 5% of his salary. 1. Johnson decides to put 5% of his salary into his retirement plan in addition to the amount put into the plan by his employer. Find the total annual contribution into the retirement plan. 1. 2. Johnson decides to invest his retirement funds in a mutual fund with global stocks that he hopes will yield 8% per year. Find the future value in his account after 12 years. 2. 3. Assume the Mayo Clinic has exactly 55,000 employees and that the average salary per per- son including physicians is $87,300 per year, which includes the cost of health insurance paid by the employer. Estimate the annual payroll. 3.
Transcribed Image Text:MAYO CLINIC www.mayoclinic.com • 1889: Founded in Rochester, MN MAYO CLINIC • 1987: Expanded to Jacksonville, FL • 2016: Over 50,000 employees • 2018: More than a million patients The Mayo Clinic is the largest integrated, not-for-profit medical group practice in the world. With main facilities in Minnesota, Arizona, and Florida, it is ranked among the best hospitals in the world. Its mission is focused on people: To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research. After getting his two-year degree in radiation therapy and working for three years at a small hospital, Darnell Johnson went to work for the Mayo Clinic at a salary of $63,500. The clinic puts 6% of his salary into his retirement plan and also allows Darnell to contribute up to an additional 5% of his salary. 1. Johnson decides to put 5% of his salary into his retirement plan in addition to the amount put into the plan by his employer. Find the total annual contribution into the retirement plan. 1. 2. Johnson decides to invest his retirement funds in a mutual fund with global stocks that he hopes will yield 8% per year. Find the future value in his account after 12 years. 2. 3. Assume the Mayo Clinic has exactly 55,000 employees and that the average salary per per- son including physicians is $87,300 per year, which includes the cost of health insurance paid by the employer. Estimate the annual payroll. 3.
4. Use the annual payroll to estimate the annual contribution the Mayo Clinic must make into (a) FICA (Social Security) and Medicare (7.65% of all wages) and (b) the retirement plans of all employees. (b) 5. (a) Find the total labor costs by adding the amounts in Exercises 3 and 4 above and then (b) write the number using words. It is clear that the Mayo Clinic needs a LOT of revenue to pay employees and this does not even include the costs of buildings, equipment, supplies, etc. (а) (b) 6. The Mayo Clinic saved the life of a wealthy entrepreneur who had cancer. He decided to donate $400,000 per year for the next 5 years to the hospital. Find the present value of this gift, assuming 6% per year. 6. 7. Managers have decided to build a new building in 7 years and will need $47,400,000. The chief financial officer (CFO) decides to fund this cost by making contributions into a sink- ing fund at the end of each 6-month period. Find the payment needed every 6 months if funds earn 5% per year. 7.
Transcribed Image Text:4. Use the annual payroll to estimate the annual contribution the Mayo Clinic must make into (a) FICA (Social Security) and Medicare (7.65% of all wages) and (b) the retirement plans of all employees. (b) 5. (a) Find the total labor costs by adding the amounts in Exercises 3 and 4 above and then (b) write the number using words. It is clear that the Mayo Clinic needs a LOT of revenue to pay employees and this does not even include the costs of buildings, equipment, supplies, etc. (а) (b) 6. The Mayo Clinic saved the life of a wealthy entrepreneur who had cancer. He decided to donate $400,000 per year for the next 5 years to the hospital. Find the present value of this gift, assuming 6% per year. 6. 7. Managers have decided to build a new building in 7 years and will need $47,400,000. The chief financial officer (CFO) decides to fund this cost by making contributions into a sink- ing fund at the end of each 6-month period. Find the payment needed every 6 months if funds earn 5% per year. 7.
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