Juan and Pete are on the same salary. Juan receives a 10% raise followed by an 8% raise a year later. Pete receives an 8% raise followed by a 10% raise a year later. After the two salary raises, whose salary is higher? Explain your answer.
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- Michiko and Saul are planning to attend the same university next year. The university estimates tuition, books, fees, and living costs to be 12,000 per year. Michikos father has agreed to give her the 12,000 she needs to attend the university. Saul has obtained a job at the university that will pay him 14,000 per year. After discussing their respective arrangements, Michiko figures that Saul will be better off than she will. What, if anything, is wrong with Michikos thinking?Sam Smith is currently employed as a mechanical engineer and is paid$65,000 per year plus benefits that are equal to 30 percent of his salary. Sam wants to begin a consulting firm and decides to leave his current job.After his first year in business, Sam’s accountant informs him that he hasmade $45,000 with his consulting business. Sam also notices that he paid$6,000 for a health insurance policy, which was his total benefit during hisfirst year. What was Sam’s opportunity cost?A man who is 30 years old at the start of the year, is considering getting an MFM degree. He currently earns $40,000 per year and expects to continue earning that amount for the rest of his working life (until age 65). He will give up his income for two years and will pay $20,000 per year in tuition, if he attends business school. In exchange, he expects a raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5% annual rate and that the discount rate is 8%. What is the minimum expected starting salary after graduation for him that makes attending business school a positive-NPV investment? (Assuming that all cash flows happen at the end of each year.) Use Time Value of Money calculations.
- Alex and tony are twins.After graduation and being finally able to get a good job,they plan for retirement as follows;•Starting at age 24, Alex deposits 10,000.00 pesos at the end of each year for 36 years.•Starting at age 42, Tony deposits 20,000.00 pesos at the end of year for 18 years.who will have the greater amount at retirement if both annuities earn 12% per year compounded annually?Alex and Tony are twins. After graduation and being finally able to get a good job, they plan for retirement as follows: Starting at age 24, Alex deposits 10,000 php at the end of each year for 36 years; and starting at age 42, Tony deposits 20,000 php at the end of each year for 18 years. Who will have the greater amount at retirement if both annuities earn 12% per year compounded annually?Maria has just finished her thirty-second year with her company and is getting ready to retire. During her thirty-two years, Maria's average annual salary was S62,544. How much can Maria expect to receive from Social Security annually if she were to retire today? (Assume she will receive 55% of his average annual salary.) a. $96.943.20 b. $34.399 92 c. S28.144.00 d. $62.544
- Rean gets a job with a starting monthly salary of 20,000.She is promised by her employer to receive a monthly increases od 1,725 each year. How much will her annual salary be after 10 yearsAlicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $588,000, $618,000, and $648,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020? Maximum benefit in 2020 [$ ] *PER MCGRAW-HILL, THE ANSWER IS NOT $370,800*Alex and Toni are twins. After Graduation and being finally able to get a job they plan for retirement as follows. Starting age 24, Alex deposits ₱ 10 000.00 at the end of each year for 36 years. Starting age 42, Toni deposits ₱ 20 000.00 at the end of each year for 18 years. Who will have a greater amount of retirement if both annuities earn 12% per year compounded annually?
- Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2022. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2019, 2020, and 2021. What is the maximum benefit Alicia can receive in 2022? The answer I keep getting is $245,000 and that is the wrong answer. I am not sure what I am doing wrong. Any help would be appreciated!Mohamed accepted a new position as an electrician. Mohamed has a starting annual salary of $65,000 with an expected raise of 2.5% per year. If Mohamed stays at this job for 10 years, what would be his salary?Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2020. Before retirement, her annual salary was $597,000, $627,000, and $657,000 for 2017, 2018, and 2019. What is the maximum benefit Alicia can receive in 2020?