Miss A has P300,000 annual income while Miss B has P800,000 annual income. Explain the ability to pay theory based on the given situation.
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Miss A has P300,000 annual income while Miss B has P800,000 annual income. Explain the ability to pay theory based on the given situation.
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- How much will Mira receive if the net income earned is P 155,000?Suppose that Thomas Lee is enrolled in a defined contribution plan in which the employer contributes $8,000 each year. Thomas is earning $80,000 this year and his tax rate is 30 percent (which is not expected to change). Assume that the before- tax rate of return is 8 percent. (a) What is the additional amount of funds that Thomas will have when he reaches retirement in 10 years as a result of this year's service? (b) Suppose that Thomas's employer is planning to reduce half of their contribution to the defined contribution plan. Assume that Thomas would like to keep his retirement funds the same as they would have been with the defined contribution plan. If Thomas's only opportunity to save for retirement is in a nonqualified savings plan (no tax benefits), how much would Thomas need to receive in additional salary (which he would then save) to achieve his objective?If you earned $80, 000 this year, you would pay more CPP than your brother, who earned $ 60,000. Agree or disagree and explain your answer.
- A recent government study reported that a college degree is worth an extra Php23000 per year in income (A) compared to what a high-school graduate makes. If the interest (i) is 6% per you and you work for 40 years (N), what is the future compound amount (F) of this extra income?Gross Income Compute how much will be included and excluded in the gross income given the following scenarios. 1. A call center agent receiving a monthly salary of P21,000 with mandatory annual deductions of P15,166, which includes SSS, PhilHealth, and Pag-Ibig contributions. What will be the amount for his annual gross income?Russell and Charmin have current living expenses of $66,260 a year. Estimate the present value amount of income they will need to maintain their level of living in retirement. Assume an average tax rate of 11 percent and a(n) 74 percent income replacement ratio. The estimated present value amount of income they will need to maintain their level of living in retirement is?
- Ms. A's income consists of Rs.1,00,000 per year from pension plus the earnings from whatever she sells of the 2,000 kilograms of rice she harvests annually from her farm. She spends this income on rice (x) and on all other expenses (y). All other expenses (y) are measured in rupees, so that the price of y is Rs. 1. Last year rice was sold for Rs. 20 per kilogram, and Ms. A's rice consumption was 2,000 kilograms, just the amount produced on her farm. This year the price of rice is Rs. 30 per kilogram. Ms. A has standard convex preferences over rice and all other expenses. Answer the following two questions without referring to any utility function or indifference curves.(i) What will happen to her rice consumption this year increase, decrease, or remain the same? Give a clear explanation for your answer.(ii) Will she be better off or worse off this year compared to lastyear? Explain clearly.Suppose your first job pays you Php 300,000 annually. Answer the following questions assuming (a) you are unmarried, and (b) you are married with two young children. Let see how your allocation change. What percentage should your cash reserve contain?An individual has monthly expenses of $1,800 for rent and $1,000 for groceries, transportation, and other necessary expenses.Which average return should the individual expect to match 25% of yearly expenses on a $100,000 investment?
- Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. What is his IRR?a. -1.18%.b. +1.18%.c. -0.8%.d. +0.8%. Same facts as the above question except: Assume a required rate of return of 8%. What is the NPV?a. <3,378>.b. 3,378.c. <2,178>.d. 2,178.A person works and earns $4440 dollars but on a pay stub pays 41% to tax. How much money is left over after taxes? Round your answer to the nearest dollar.A call center agent receiving a monthly salary of P21,000 with mandatory annual deductions of P15,166, which includes SSS, PhilHealth, and Pag-Ibig contributions. What will be the amount for his annual gross income?