A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
Q: Jack is a very successful manager. He has a management contract which grants him a lump sum payment…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The…
A: The growth in annual salary of $65,000 is 2.50% and because savings are made as proportion of…
Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…
A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…
Q: Consider a company that recruited 500 20- year-olds on employment date. The base salary for each of…
A: Contribution Period = 45 years Base Salary = 100,000 Effective Annual Rate = 5% Monthly Rate = 5%/12…
Q: A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to…
A: Individuals or companies invest regular amounts in financial instruments to earn interest on the…
Q: An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest…
A: Final value is computed in nominal terms as the compounded value of the initial investment. The…
Q: A 55-year-old executive will retire at age 65 and expects to live to age 75. Assuming a 10 percent…
A: Age of retirement = 65 Age of death = 75 Number of years to avail annual amount of P10,000 = 10…
Q: Victoria Industries (VI) plans to accumulate funds for the purchase of a larger manufacturing…
A: Here, Monthly Contribution is $10,000 Time Period is 7 years Interest Rate is 4.5% Compounding…
Q: A construction company sets aside an amount of $2000 into an investment for interns who begin work…
A: Investment = 2000 Interest Rate = 3.78%/12 = 0.315% per month N = 48 months (3 years + 1 year)
Q: Junior’s average monthly expense is currently Ghc750, but Junior expects his monthly expense to grow…
A: Junior’s monthly expenditure can be calculated by finding the annual expenditure after 35 years…
Q: An engineer invests $5000 at the end of every year for a 40-year career. If the engineer wants $1…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r where, r =rate of interest per period n = no. of…
Q: you are paying into an investment account that pays 8% compounded annually. If you are making…
A: In the given question we require to calculate the future value from the following details: Interest…
Q: A business must raise $90,000 in 6 years. What should be the size of the owners' quarterly payment…
A: We will apply the required formula to calculate the each quarterly payment using 6 years time and…
Q: An investment firm has a job opening with a salary of N45,000 for the first year. Suppose that…
A:
Q: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How…
A: Given that : Compounded = quarterly Bonus for 50 employees = $1200 x 50 = $60,000 Principal = ? The…
Q: A company plans to buy new equipment in 25 years. They will start by saving $1,370 at the end of…
A: Saving at the end of year = $ 1370 Annual growth rate = 3.5% Annual interest rate = 15.3% Period =…
Q: An individual has $1,000 to invest. He wants to accumulate $3,670 and can earn 8% annual interest on…
A: In this question we need to compute the number of years required to accumulate $3670. Other details…
Q: A contractor is calculating the present worth of the salaries of his five employees over the next…
A: Present worth refers to the amount present today that is more valuable than the amount will…
Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…
A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…
Q: How much would tom’s initial balance have to be? show work and formula
A: Present Value of Future Amount = FV / (1 + r)^n Here, FV = Future Value i.e. $30000 r = Periodic…
Q: Lindsay is 25 years old and has a new job in Web development. Lindsay wants to make sure she is…
A: The question is based on the concept of future value calculation for an annuity type of investment…
Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…
A: The rate of interest is used in the calculation of the interest amount on the principal value. The…
Q: A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The…
A: Salary = $75,000 Annual raise = 2% = growth rate =G Deposit = 15% of salary Average interest = 6% =…
Q: Tom Thompson expects to invest $10,000 at 12% and, at the end of a certain period, receive $96,463.…
A: Future value of an annuity: It refers to an amount received or paid equally for a specified number…
Q: The president of a growing firm wishes to give each of 20 employees a holiday bonus. How much is…
A: Nominal interest rate: It is the rate in which the effect of accounting has not been taken.
Q: If edward want to earn 215,000 within the next 20 years and the salaries grows at 4.15% per year…
A: given, fv = $215000 r=4.15% n=20 years
Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two…
A: The current worth of the cash flows or an asset after discounting is termed as the present value.
Q: Charles started working for $30,500. Salaries expect to increase by 2.5% per year. He is entitled to…
A: Pension funds are saved to provide financial cushion at the age of retirement. Pension funds are of…
Q: Bob has saved $ 5000 towards the purchase of a car costing $ 7000. For how many months does Bob need…
A: When the interest is computed on the principal amount along with all the previously accumulated…
Q: Under a new company employees savings plan, an employee will pay P 250 at the beginning of each…
A: Interest is the sum of money that accumulates as a percentage of the principal amount over a certain…
Q: A 45-year-old engineer earning $120,000 per year wants to retire at age 65 with $2 million. The…
A: a. given, FVA=$2,000,000 R=7% N=20 YEARS…
Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…
A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…
Q: A client wants to save $ 20,000 for a year starting from January at an initial effective rate of…
A: Answer with all calculations are as follows
Q: f my balance is $85,000 and I contribute $25,000 p.a for the next 35 years earning a rate of 5%,…
A: In this we have determine the future value in two steps one is that of balance and other is annual…
Q: Salaries Suppose you are offered two identical jobs,job 1 paying a starting salary of $20,000 with…
A: Job 1 Starting Salary = 20,000 Annual Raise = 1000 Job 2 Starting Salary = 18,000 Annual Raise =…
Q: A man invested 100,000 every end of the year for 10 years, then waited for another 10years for his…
A: Annual investment (P) = 100,000 Interest rate (r) = 8% Number of annual investments (n) = 10 Number…
Q: small business owner contributes $2,000 at the end of each quarter to a retirement account that…
A: Information Provided: Amount to be contributed = $2000 Interest = 10% compounded quarterly
Q: How many years will it take Rexchem, Inc. to accumulate $400,000 for a chemical feeder if the…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…
A: Given, Interest rate = 9% per annum compounded monthly = 0.75% per month Option 1 = 66000 each…
Q: If you have been hired at an annual salary of $23000and expeck to receive annual increases of 5%…
A: Your annual wage is the amount of money paid to you by your employer over the course of a year in…
Q: a business owner plans to deposit annual profits in an investment account earning a 9% annual…
A: Annual interest rate (r) = 9% Annual investment (P) = 22,000 Number of annual deposits (n) = 1+7 = 8
Q: A business must raise $70,000 in 8 years. What should be the size of the owners' quarterly payment…
A: In this, we have to calculate future value FACTOR and from that, we can get sinking fund payment. A…
Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…
A: given that: interest rate= 12%= 0.12 n (no. of period)= 5 years 1st year salaries=$150000 (S) since…
Q: If the interest rate is 9 percent compounded monthly, what is the value today of each option?
A: Present Value: It represents the present worth of the future sum of the amount or future annuity…
Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Jenny receives an annual salary of $51,000 plus a 10 percent commission on all sales during the year…
A: Commission on sales = (Total sales - $200,000) x 10% = ($420,000 - $200,000) x 10% = $22,000
A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The manager has 5 employees whose combined salaries through the end of this year are $300,000. If he expects to give an average raise of 7% each year. If the interest rate is nine percent per year, calculate the present worth of the employees' salaries over the next five years.A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The engineer will deposit a constant percentage of annual salary at the end of each year in a savings account that earns 5%. What percentage must be saved so that there will be $1 million in savings for retirement after 35 years?A young engineer’s starting salary is $52,000. The engineer expects annual raises of 3%. The engineer will deposit 10% of the annual salary at the end of each year in a savings account that earns 4%. How much will the engineer have saved for starting a business after 15 years? We suggest that the spreadsheet include at least columns for the year, the year’s salary, the year’s deposit, and the year’s cumulative savings.
- Suppose your annual starting salary is $54,076. After working for a few years, you start to get yearly raises. If you get a 0.7% raise a total of 3 times and then a 1.9% raise a total of 6 times, what is your salary after all the raises?A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The engineer will deposit 15% of annual salary at the end of each year in an investment account that averages 6% interest. How much will the engineer have saved for retirement after 40 years?By the end of this year, the total payroll expenditure of a small engineering consulting firm is $375,000. If a raise of 6% is given each year thereafter, calculate the future worth of the employees’ salaries over the next six years to follow. The interest rate is 10% compounded annually. The interest rate is 10% compounded annually.
- An investment firm has a job opening with a salary of N45,000 for the first year. Suppose that during the next 39 years, there is a 5% raise each year. Find the total compensation over the 40-year period.A certain company pays a bonus to each engineer at the end of each year based on the company’s profit for that year. If the company invested $ 2 million to start up, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money paid represents 5% of the company’s profit.Best Properties is considering an investment that will pay $1,000.00 at the end of each year for the next 15 years. It expects to earn an annual return of 16% on its investment. How much should the company pay today for its investment? Type your numeric answer and submit
- Suppose a man receives an initial annual salary of P60,000, increasing at the rate of P5,000 a year. If money is worth 10%, determine his equivalent uniform salary for a period of 8 years.Lions Co. has machinery that cost $150,000. It is to be leased for 15 years with rent received at the beginning of each year. Crone wants a return of 10%. Compute the amount of the annual rent.The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarterly, so that each employee will receive a $1,200 bonus?