Say a student leaves her job for a year to attend college. The job pays 20,000 a year. After returning to work with the extra training her wage increases by 20% and she stays employed for 10 years and wages remain unchanged. The cost of the course was 500 and the discount rate is 5% per year. What is the net present value of the extra income the student will earn from going to college over her lifetime? -10,000 10,387 9,456 8,765 5%

Say a student leaves her job for a year to attend college. The job pays 20,000 a year. After returning to work with the extra training her wage increases by 20% and she stays employed for 10 years and wages remain unchanged. The cost of the course was 500 and the discount rate is 5% per year. What is the net present value of the extra income the student will earn from going to college over her lifetime? -10,000 10,387 9,456 8,765 5%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An engineer changed jobs and is signing up for benefits. The company 401(k) includes a low-cost fund that is expected to earn 5.3% annually. The engineer’s employer will contribute up to 2% by matching half the employee contribution. So she will save at least 4% of her salary of $80,000 into the account. She expects her salary to increase 2.5% per year. What is the value of the account after 15 years if she deposits the 4% minimum?
Mary would like to save $10,000 at the end of 5 years for a future down payment on a car. a. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal? b. If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have to work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.
Anna receives $150 a month for four years while she attends college to earn a bachelor's degree. At a 6.25 percent discount rate compounded monthly, what are these payments worth to you on the day she enters college? O $4,800.00 $6,355.98 O$4,608.87 O $4,201 20 O $6.789.92
You have to decide whether or not to participate in the employer match program at your work. If you place 8% of your gross pay into a retirement account, your employer will match it. You plan to retire in 30 years. You expect to earn 6% return on your investment. How much will you have in the account if your average annual gross salary is $50,000? A. $316,232.80 B. $22,973.96 C. $45,947.92 D. $632,465.60 Using the same information as the previous question, assume that you want to increase your portion of the contribution to 10%. The employer will only match up to 8%. How much would you have in this situation? A. $692,523.80 B. $711,523.80 C. $316,232.80 D. $632,465.60
Sarah had been contributing $300 pre-tax per month to a retirement account that pays 2.16% interest compounded monthly. After 10 years, she needs to withdraw 25% of the money from her account. If the early withdrawal penalty is 10% of the amount withdrawn, how much will she have to pay? a. $1,003.59 b. $40,143.57 c. $4,014.36 d. $10,035.89
G7. CALACULATE FREDDY S LABOUR RATE PER HOUR? IF HER MONTHLY SALARY IS 10 000.SHE GE R9000 BONUS.HER EMPLOYER CONTRIBUTE R9000 ON HER PENSION.SHE WORK FOR 9 HOURS PER DAY FROM MONDY TO FRIDAY EACH WEEK.SHE IS HAVING 28 DAYS VACATION LEAE .THERE ARE 12 PUBLIC HOLIDAY IN YEARS
In 2013, workers earned one credit towards Social Security for every $1,160 in earnings, up to a maximum of four credits per year. Jeni earns $4,350 per year at her part-time job. At this rate, how long will it take her to be eligible for Social Security benefits? Answers A.11 years B.10 years C.15 years D.14 years
Calculate the hourly recovery tarrif (rounded to the nearest cent) of Brenda from information below : info the basic annual salary of Brenda is R240 000. She is entitled to an annual bonus of R20 000. Her employer contributes R24 000 per annum to her pension fund. She works for 8 hours per day Monday to Friday each week. She is entitle to 21 days paid vacation leaver. There are 12 public holidays in the year 365 days, 10 of which fall on a weekdays
A woman has a total of $8,000 to invest. She invests part of the money in an account that pays 5% per year and the rest in an account that pays 11% per year. If the interest earned in the first year is $460, how much did she invest in each account? account paying 5% $________ account paying 11% $___________
The median annual income for someone with an Associates Degree is $31,936. The median annual income for someone with a Bachelor's Degree is $45,221. Suppose you have an associate's degree. If you quit your job and go back to school to study two years for a bachelor's degree, it will cost you $55,000 in tuition and fees plus approximately $64,000 in lost earnings. After graduation, how long will it take you to earn back that money?
3. Suppose a high schools graduate earns $40,000 per year while a college graduate makes $80,000. Assume these wages will not change over time, and there are no other benefits to going to college. Explicit costs of going to college (tuition, books, supplies, etc.) are $30,000 per year. Ignore the psychic costs. The college education lasts four years. The retirement age is 65. a. Say an 18 year-old decides to obtain college education. What can her annual discount rate be? b. Say a 40 year-old has a discount rate of 5%. Will this person go to college?
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 years

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