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Goryan [66]
2 years ago
6

Suppose that you start working for a company at age 25. You are offered two rather unlikely, but quite enticing, retirement plan

s from which you are allowed to choose one. [Round all answers to the nearest dollar.]Retirement plan 1: When you retire, you will receive $20,000 for each year of service.Retirement plan 2: When you start work, the company deposits $2500 into a savings account that is guaranteed to pay a yearly rate of 18%. When you retire, the account will be closed and the balance given to you.A. Determine the amount you would receive under plan 1, if you retired at age 55.
Business
1 answer:
Harlamova29_29 [7]2 years ago
8 0

Answer:

Total amount= $600,000

Explanation:

Giving the following information:

Suppose that you start working for a company at age 25.

<u>Option 1:</u>

$20,000 for each year of work.

Number of years of service= 55 - 25= 30 years

<u>Now, the total retirement plan:</u>

Total amount= 30*20,000= $600,000

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MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company expect
Black_prince [1.1K]

Answer:

$21.859

Explanation:

According to the scenario, computation of the given data are as follow:-

Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period

1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1

                  = 1.20 ÷ 1.12

                 = 1.071

2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2

                   = $1 × (1.44) ÷ 1.254

                  = $1.148

3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3

                    = $1 × (1.44) × (1.10) ÷ 1.405

                     = $1.127

4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4

                    = $1 × (1.44) × (1.21) ÷ 1.574

                     = $1.107

5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5

                     = $1 × (1.44) × (1.331) ÷ 1.762

                     = $1.088

6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]

= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) ×  (1.762)

= $2.012 ÷ 0.1233

= $16.318

Now

Share’s Current Value is

= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318

= $21.859

We simply applied the above formula

5 0
2 years ago
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. W
inessss [21]

Answer:

The correct answer to the following question will be Option B.

Explanation:

  • These conditions hopefully reduce banking crises as well as quantify the community against banks never running cash. The criteria for the reservation were established to be doing the ends of the next day.
  • Amount of inter-bank payments, these funds also convince the public which banks aren't going to make many such mortgages.

Other available options have no connection with the particular circumstance. So the answer to the above seems to be the right one.

7 0
2 years ago
The one-to-one property of natural logarithms states that if ln x = ln y, then
Irina18 [472]
<span>If ln x = ln y, then x=y. Because ln is the constant on both sides of the equation, therefore, ln cancels itself out, leaving x equaling y.</span>
5 0
2 years ago
You are working on a team that is designing a new drug. For this drug to work, it must enter the cytoplasm of specific target ce
LuckyWell [14K]

Answer:

The correct answer is

d. the similarity of the drug molecule to other molecules that are transported into the target cells

good luck

4 0
2 years ago
Warbler Gift's reported the following information for the sales of their single product: Total Per Unit Sales $ 300,000 $ 10 Var
Marysya12 [62]

Answer: Requitred units =34,285.7 units

Explanation:

GIVEN

                                     Total          Per Unit Sales

                                   $ 300,000   $ 10

Variable expenses   180,000     <u>   $6 </u>

Contribution margin 120,000       $ 4

Fixed expenses        100,000

Net operating income $ 20,000

New selling price=Old price - prosed price

=$10-$0.5  =  $9.5

Revised contribution margin=  Selling price-Variable costs

= $9.5-$6=$3.5

Proposed Contribution margin=Net operating income + Fixed expenses.

=(100,000 +20,000)= $120,000

Required units to be sold=Proposed Contribution margin/Contribution margin per unit

= $120,000/$3.5

=34,285.7 units

5 0
1 year ago
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