Reference no: EM133105072
1. The future value of 6,000 deposited every year for the next 25 years if the interest rate is 12% compounded annually is between $799,000 and 800,000.
Interest is compounded at the end of the period and deposits (investments) are also made at the end of the period, so use "0" for the type argument in the Excel function. The PV is 0 in this problem.
True
False
2. Inflation erodes future earning power and can result in inadequate retirement savings if it is not taken into consideration when planning for retirement.
True
False
3. Annuities are a financial instrument used for retirement planning.
True
False
4. Employee funds invested in a 401-K plan reduce the employees taxable income in the year of the contribution.
True
False
5. Employees of Starbucks who contribute to the "Future Roast" 401-K are only full vested after 1 full year of employment at Starbucks.
True
False
6. A 401-k is federal government sponsored retirement account. It only allows US citizens to dedicate a percentage of their pre-tax salary to a retirement account.
True
False
7. You are thinking of buying a deferred annuity "Life Contingent with Period Certain. You pay now and are promised payments that begin in 35 years. If you invest $10,000 today the annuity will accumulate value at 10% per year for 35 years. This is the rate promised by the insurance company that is selling the annuity. At the end of year 35 the contract will begin to annuitize. From time 35 to time 60 your principal will earn 10%. The terms of the annuity contract promise that you or your beneficiary will receive an annual payment for 25 years. If you die before this time your designated beneficiary will receive the remaining payments. Let's say your beneficiary is your spouse.
The annual payment will you receive starting 35 years after you have purchased the annuity is between $29,800 and $29,954.
True
False
8. An immediate annuity will begin to pay the annuitant within 12 months of its purchase. It is purchased with a single premium.
True
False
9. In 2021 the maximum allowable contribution to an IRA was greater than for a 401-K plan.
True
False
10. Life insurance is a financial instrument used for managing the financial loss that results from the death of a family wage earner. Annuities are a financial instrument used to manage the risk of depleting one's wealth while alive.
True
False
|
How did economic and political reforms in the early 1905
: QUESTION 1: Following its independence from Britain in 1963, Kenya embraced African Socialism. Why did the country choose this path?
|
|
Concept mapping technique
: Below is a list of broad topics. Select ONE of the topics and use the concept mapping technique from the lecture notes and the videos to develop a more narrow t
|
|
What is the building capital cost allowance
: One year ago, Prestige Company Ltd. purchased a new factory at a total cost of $1,500,000. What is the building capital cost allowance
|
|
Pros and cons of the proposed mode of entry
: -Using the emerging technology AUGMENTED REALITY propose an appropriate mode of entry of the company into the selected country of Brazil
|
|
Financial instrument used for retirement planning
: 1. The future value of 6,000 deposited every year for the next 25 years if the interest rate is 12% compounded annually is between $799,000 and 800,000.
|
|
Describe and discuss recognition and measurement policies
: Describe and discuss the recognition and measurement policies of your allocated company about leases and income tax
|
|
Making decisions and overcoming bias using research
: How would you use qualitative or quantitative data to help you make a decision? Explain the difference between these two methods.
|
|
What is his partner return on equity
: Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,000, What is his partner return on equity
|
|
Program evaluation review technique charts
: Discuss benchmarks, flow charts, and Program Evaluation Review Technique (PERT) charts.
|