Solution: a. $450 1.501 = $675.45 (future value of a single payment) b. $800 14.487 = $11,589.60 (future value of an annuity) c. $1,000 0.747 = $747 (present value of a single payment) d. $500 6.710 = $3,355 (present value of an annuity) 10. Carla Lopez deposits $3,000 a year into her retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account?
Does Joe have enough in savings to pay for the down payment and all of the closing costs? Solution Plan: Complete the following questions based upon the information in the video and other information provided in the worksheet. 1. Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is $15.00 per hour, how much will he make per year?15*40*52= $31,200.00 annually 2.
Background • Retirees are eligible to receive Social Security benefits at age 62, the early entitlement age. However, benefits are reduced for each month that beneficiaries begin collecting before the full retirement age. • The full retirement age is now 66. It had always been 65, but 1983 legislation raised the age for those turning 62 in 2000 or later. The full retirement age will increase gradually again beginning with those turning 62 in 2017, until it reaches age 67 for those turning 62 in 2022 or later (born in 1960 or later).
What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.) 32% 16% 12% 40% 5. External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends.
Recommendation Analysis In 2007, CUTCO had profits of $197 million and has estimated revenues of $260 million in 2011. This provides CUTCO with a five-year average growth rate of 8%. At this rate, CUTCO’s yearly revenue will be a mere $380 million by 2016 and by 2021, $560 million. This is quite distant from reaching CUTCO’s profit objective of $500 million to $1 billion per year. Therefore, CUTCO must consider strategic options that will lead to substantial growth.
(Points : 25) 5. (TCO F) You are the Sales Manager for your company. Your sales team is one that, once they gain the initial sale, enjoys considerable repeat business. Sales reps are paid a base of $35K and their commission package can add as much as $49K a year (average). Top producers make as much as $65K a year in commission--along with their base pay, they make $100K.
Old press – Originally purchased 3 years ago at an installed cost of $400,000, it is being depreciated under MACRS using a 5-year recovery period. The old press has a remaining economic life of 5 years. It can be sold today to net $420,000 before taxes; if it is retained, it can be sold to net $150,000 before taxes at the end of 5 years. Press A – This highly automated press can be purchased for $830,000 and will require $40,000 in installation costs. It will be depreciated under MACRS using a 5-year recovery period.
Social Security is a safety net protecting American workers and his or her families for retirement, disability, and early death. Approximately 40% of all Americans age 65 or older are estimated to be kept out of poverty by Social Security. When a person is eligible to receive Social Security benefits that he or she is entitled to they have then reached the retirement age of Social Security. Most people think the retirement age is 65, which is not always the case. Depending on the year one was born the retirement age gradually increased when amendments were made to the Social Security Act in 1983.
Robin Chase developed the first plan to have customers become members with initial payments of $625 ($325 of which was application fee and security deposit) and additional payments of $1.50 per hour and $0.40 per mile. By May 2000 after further research and consumer feedback Chase changed to a tiered pricing model. The membership fee decreased from $300 to $75 (totaling to $400 with application fee and security deposit). This $225 decrease was due to consumer research regarding resistance to membership at the higher price point. In addition hourly charges increased from $1.50 per hour to $4.50 - $7.50 an hour with a max daily rate of $44.
A person may spend a few years of their life paying their loans off from college but in the end it is worth every penny spent. In 2007, the U.S. Census Bureau’s median earnings for full-time workers at least 25 years old are shown as followed: high school diploma, $32, 500; associate’s degree, $42,000; bachelor’s degree, $53,000; master’s degree, $63,000; and professional degrees, $100,000+. By looking at those numbers, I would have to say that a college degree should be at the top of anyone’s priority list. Without a college degree, a person is limited to what kind of job he/she can hold. With the way the world is changing, most jobs out there are requiring a college degree to even be qualified for the job.