Reggie is a self-employed taxpayer who turns 59 years old at the
end of the year (2017). In 2017, his net Schedule C income was
$316,000. This was his only source of income. This year, Reggie is
considering setting up a retirement plan.
What is the maximum amount he may contribute to the self-employed
plan in each of the following situations?
a. He sets up a SEP IRA.
b. He sets up an individual 401(k).
In: Accounting
According to the US Bureau of Labor Statistics, in the United States, the employment rate measures the number of people who have a job as a percentage of the working age population. In January 2020 the rate was 61.2%.
A) Recognizing that this is a binomial situation, give the meaning S and F in this context. That is, define what you will classify as a "success" S and what you will classify as a "failure" F as it refers to being employed.
B) Next, give the values of n, p, and q.
C) Construct the complete binomial probability distribution for this situation in a table.
D) Using your table, find the probability that exactly six working aged persons are employed.
E) Find the probability that at least 5 working aged persons are employed.
F) Find the probability that fewer than 6 working aged persons are employed.
G) Find the mean and standard deviation of this binomial probability distribution.
H) By writing a sentence, interpret the meaning of the mean value found in (G) as tied to the context of the percentage of working aged persons in the US.
I) Is it unusual to have 8 working aged persons in a group of 10 who are employed? Briefly explain your answer.
In: Statistics and Probability
According to the US Bureau of Labor Statistics, in the United States, the employment rate measures the number of people who have a job as a percentage of the working age population. In January 2020 the rate was 61.2%.
A) Recognizing that this is a binomial situation, give the meaning S and F in this context. That is, define what you will classify as a "success" S and what you will classify as a "failure" F as it refers to being employed.
B) Next, give the values of n, p, and q.
C) Construct the complete binomial probability distribution for this situation in a table.
D) Using your table, find the probability that exactly six working aged persons are employed.
E) Find the probability that at least 5 working aged persons are employed.
F) Find the probability that fewer than 6 working aged persons are employed.
G) Find the mean and standard deviation of this binomial probability distribution.
H) By writing a sentence, interpret the meaning of the mean value found in (G) as tied to the context of the percentage of working aged persons in the US.
I) Is it unusual to have 8 working aged persons in a group of 10 who are employed? Briefly explain your answer.
In: Statistics and Probability
According to the US Bureau of Labor Statistics, in the United States, the employment rate measures the number of people who have a job as a percentage of the working age population. In January 2020 the rate was 61.2%.
A) Recognizing that this is a binomial situation, give the meaning S and F in this context. That is, define what you will classify as a "success" S and what you will classify as a "failure" F as it refers to being employed.
B) Next, give the values of n, p, and q.
C) Construct the complete binomial probability distribution for this situation in a table.
D) Using your table, find the probability that exactly six working aged persons are employed.
E) Find the probability that at least 5 working aged persons are employed.
F) Find the probability that fewer than 6 working aged persons are employed.
G) Find the mean and standard deviation of this binomial probability distribution.
H) By writing a sentence, interpret the meaning of the mean value found in (G) as tied to the context of the percentage of working aged persons in the US.
I) Is it unusual to have 8 working aged persons in a group of 10 who are employed? Briefly explain your answer.
In: Statistics and Probability
Edward Jones (with a currently successful presence in the USA and Canada) is contemplating entering Asia (Singapore) and South America (Uruguay) net fall, for the first time.
Given that Singapore (index of 8) and Uruguay (index 100) rank respectively very low vs very high compared to moderately ranked US (index 46) and Canada (index 48) in terms of uncertainty avoidance, what marketing implications of this classification could you point out to Edward Jones as the company prepares to make its move? Discuss 1 from the 4Ps.
In: Economics
Lon Timur is an accounting major at a midwestern state
university located approximately 60 miles from a major city. Many
of the students attending the university are from the metropolitan
area and visit their homes regularly on the weekends. Lon, an
entrepreneur at heart, realizes that few good commuting
alternatives are available for students doing weekend travel. He
believes that a weekend commuting service could be organized and
run profitably from several suburban and downtown shopping mall
locations. Lon has gathered the following investment
information.
| 1. | Five used vans would cost a total of $74,429 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation. | ||
| 2. | Ten drivers would have to be employed at a total payroll expense of $48,900. | ||
| 3. | Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $15,900, Maintenance $3,500, Repairs $4,400, Insurance $4,400, and Advertising $2,600. | ||
| 4. | Lon has visited several financial institutions to discuss funding. The best interest rate he has been able to negotiate is 15%. Use this rate for cost of capital. | ||
| 5. | Lon expects each van to make ten round trips weekly and carry an average of six students each trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round-trip ticket. |
Click here to view PV table.
(a)
Determine the annual (1) net income and (2) net annual cash flows
for the commuter service. (Round answers to 0 decimal
places, e.g. 125.)
| Net income | $
3490.04 |
||
| Net annual cash flows | $
28300 |
(b)
Compute (1) the cash payback period and (2) the annual rate of
return. (Round answers to 2 decimal places, e.g.
10.50.)
| Cash payback period |
2.63 |
years | |
| Annual rate of return |
9.4 |
% |
(c)
Compute the net present value of the commuter service.
(Round answer to 0 decimal places, e.g. 125. If the net
present value is negative, use either a negative sign preceding the
number eg -45 or parentheses eg (45). For
calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
| Net present value |
???? |
In: Accounting
Derek and Meagan Jacoby recently graduated from State University and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $32,000 from her grandfather who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $2,350. They also found a three-bedroom home that would cost $112,000 to purchase. The Jacobys could use Meagan’s inheritance for a down payment on the home. Thus, they would need to borrow $80,000 to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a fixed interest rate of 5.75 percent for a 30-year fixed loan. Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan don’t have any school-related debt, so they will save the $32,000 if they don’t purchase a home. Also, consider the following information: The couple’s marginal tax rate is 24 percent. Regardless of whether they buy or rent, the couple will itemize their deductions. If they buy, the Jacobys would purchase and move into the home on January 1, 2018. If they buy the home, the property taxes for the year are $3,700. Disregard loan-related fees not mentioned above. If the couple does not buy a home, they will put their money into their savings account where they earn 5 percent annual interest. Assume that all unstated costs are equal between the buy and rent option. Required: Help the Jacobys with their decisions by answering the following questions: (Leave no answer blank. Enter zero if applicable.)
1. What is the approximate break-even point in years for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) (Do not round intermediate calculations. Round your final answer to 1 decimal place.)
2. What is the after-tax cost (in interest and property taxes) of living in the home for 2018? Assume that the Jacobys' interest rate is 5.75 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. (Round your intermediate calculations to the nearest whole dollar amount.)
3. Assume that on March 1, 2018, the Jacobys sold their home for $133,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $80,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $60,000. Assume they make interest-only payments on the loan.
Required:
3(1). What gain or loss do the Jacobys realize and recognize on the sale of their home?
3(2). What amount of taxes must they pay on the gain, if any?
In: Finance
"Professor James Duane from Regent University, USA advocates for constant execution of the right to remain silent and immediately calling the lawyer every time a person is questioned by the police on any topic. He has a popular YouTube lecture "Don’t talk to the Police" and the book "You Have the Right to Remain Innocent". Let’s try to probabilistically evaluate his claims using the following model.
We have individuals with no history of convictions (person NC) and with a history of convictions (person C). Suppose:
The police arrested a person suspecting he is involved in a certain crime. The penalty for the crime is 5 years in prison."
Questions:
In: Statistics and Probability
Lon Timur is an accounting major at a midwestern state
university located approximately 60 miles from a major city. Many
of the students attending the university are from the metropolitan
area and visit their homes regularly on the weekends. Lon, an
entrepreneur at heart, realizes that few good commuting
alternatives are available for students doing weekend travel. He
believes that a weekend commuting service could be organized and
run profitably from several suburban and downtown shopping mall
locations. Lon has gathered the following investment
information.
| 1. | Five used vans would cost a total of $75,096 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation. | ||
| 2. | Ten drivers would have to be employed at a total payroll expense of $48,600. | ||
| 3. | Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $15,800, Maintenance $3,100, Repairs $3,900, Insurance $4,300, and Advertising $2,500. | ||
| 4. | Lon has visited several financial institutions to discuss funding. The best interest rate he has been able to negotiate is 15%. Use this rate for cost of capital. | ||
| 5. |
Lon expects each van to make ten round trips weekly and carry an average of six students each trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round-trip ticket. |
(a)
Determine the annual (1) net income and (2) net annual cash flows
for the commuter service. (Round answers to 0 decimal
places, e.g. 125.)
| Net income | $ | ||
| Net annual cash flows | $ |
(b)
Compute (1) the cash payback period and (2) the annual rate of
return. (Round answers to 2 decimal places, e.g.
10.50.)
| Cash payback period | years | ||
| Annual rate of return | % |
(c)
Compute the net present value of the commuter service.
(Round answer to 0 decimal places, e.g. 125. If the net
present value is negative, use either a negative sign preceding the
number eg -45 or parentheses eg (45). For
calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
| Net present value |
In: Accounting
My question is from the textbook University Physics with Modern Physics 14th edition. Authors: Young and Freedman. It is from Chapter 23 Problem 52. The question is:
A proton and an alpha particle are released from rest when they are 0.225 nm apart. The alpha particle (a helium nucleus) has essentially four times the mass and two times the charge of a proton. Find the maximum speed and maximum acceleration of each of these particles. When do these maxima occur: just following the release of the particles or after a very long time?
Thank you!
In: Physics