Python problem:

An insurance salesperson knows the following about a client:

• The year the client was born.
• The age the client wants to retire.
• The annual amount the client can contribute to an IRA.

The insurance agent wants to know the following:

• The number of years until the client retires.
• The number of years until the client is required to take Required Minimum Distributions.
• The balance of the IRA at the age the client wants to retire.
• The balance of the IRA at the age Required Minimum Distributions (RMD) are to be taken.
• The Required Minimum Distribution that must be taken.

The formula to calculate the balance of the IRA is:

    B = (((1 + r)n - 1) / r) * A

where:

• B is the balance
• r is the interest rate
• n is the number of years
• A is the annual amount

The formula to calculate the Required Minimum Distribution is:

    RMD = B / DP

where:

• RMD is the Required Minimum Distribution to be taken
• B is the balance
• DP is the Distribution Period

Assume the following:

• The client is younger than the age they want to retire.
• The age Required Minimum Distributions are to be taken is 70.
• The expected interest rate is 5%. (Note: 5% will be 0.05 in the formula above)
• The Distribution Period is 27.4

Instructions

Algorithm

Set required minimum distribution age equal to 70
Set expected interest rate equal to 0.05
Set distribution period equal to 27.4
set current year to 2020

Get user input for birth year
Get user input for the age the user would like to retire
Get user input annual contribution to IRA

Add birth year to retirement age and save as retirement year
Subtract current year from retirement year and save as years until retirement
Add birth year to the required minimum distribution age and save as year of required minimum distribution 
Subtract current year from year of required minimum distribution and save as years until required minimum distribution

To calculate the balance of the IRA for the user's retirement year do the following formula:    
    First find the sum of one plus expected interest rate. Then raise the total to the power of years until retirement.  
    Subtract this total by one
    Then divide your new total by expected interest rate
    last multiply your final number by annual contribution to IRA
Save this number from the formula above to balance at retirement age

To calculate the balance of the IRA for the users required minimum distribution age do following formula:
    first find the sum of one plus expected interest rate. Then raise the total to the power of the required minimum distribution age. 
    Subtract this total by one. 
    then divide your new total by expected interest rate
    last multiply your final number by annual contribution to IRA
Save this number from the formula above to balance at required minimum distribution age

Now to calculate the required minimum distribution that must be taken out.  
Complete the following formula 
    balance at required minimum distribution age divided by distribution period
Save this total from the formula above as required minimum distribution

display current year
display birth year
display retirement age
display annual contribution to IRA
display years until retirement
display years until required minimum distribution
display balance at retirement age
display balance at required minimum distribution age
display required minimum distribution

1. Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:

   1. Opened a business bank account with a deposit of $50,000 in exchange for common stock.
   2. Purchased supplies on account, $4,000.
   3. Paid creditors on account, $2,300.
   4. Received cash from fees earned on insurance commissions, $13,800.
   5. Paid rent on office and equipment for the month, $5,000.
   6. Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300.
   7. Paid office salaries, $2,500.
   8. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.
   9. Billed insurance companies for sales commissions earned, $12,500.
   10. Paid dividends, $3,900.

   Required:

   1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

   Assets

   =

   Liabilities

   +

   Stockholders' Equity

   Item

   Cash

   +

   Accounts Receivable

   +

   Supplies

   =

   Accounts Payable

   +

   Common Stock

   -

   Dividends

   +

   Fees Earned

   -

   Rent Expense

   -

   Salaries Expense

   -

   Supplies Expense

   -

   Auto Expense

   -

   Miscellaneous Expense

   Item

   a.

   a.

   b.

   b.

   Bal.

   Bal.

   c.

   c.

   Bal.

   Bal.

   d.

   d.

   Bal.

   Bal.

   e.

   e.

   Bal.

   Bal.

   f.

   f.

   Bal.

   Bal.

   g.

   g.

   Bal.

   Bal.

   h.

   h.

   Bal.

   Bal.

   i.

   i.

   Bal.

   Bal.

   j.

   j.

   Bal.

   Bal.

   2. Stockholders' equity is the right of stockholders' to the assets of the business. These rights are   by issuing common stock and revenues and   by dividends and expenses.

   3. Determine the net income for March.
   $

   4. How much did March’s transactions increase or decrease stockholders’ equity?
     by $

Check My Work

• Previous

An insurance company must make payments to a customer of $9 million in one year and $4 million in six years. The yield curve is flat at 7%.

a. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond, what maturity bond must it purchase? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

b. What must be the face value and market value of that zero-coupon bond?

The ledger of Novak Corp. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

An analysis of the accounts shows the following.

The ledger of Oriole Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.

Consider the following account balances in thousands for the Yankee Company for the year ended December 31, 2017:

Direct Materials Inventory, Beginning                  $          24,000

Direct Material Invenotry, Ending                                    26,000

Work in Process, Beginning                                           32,000

Work in Process, Ending                                               14,000

Finished Goods Inventory, Beginning                              25,000

Finished Goods Inventory, Ending                                  18,000

Direct Materials, Purchased                                           99,000

Direct Labor                                                                  30,000

Indirect Labor                                                                12,000

Plant insurance                                                              9,000

Other insurance                                                             8,000

Depreciation – plant                                                      11,000

Depreciation – other                                                      10,000

Repairs & Maintenance – plant                                       5,000

Marketing & Customer support                                       95,000

Plant rent                                                                      15,000

General & Admin                                                           36,000

            Required:

            Prepare a statement of cost of goods manufactured and an income statement for the year ended December 31, 2017, please note sales were $310,000,000

An auditor is recalculating depreciation on real property acquired during the year. Which of the following documents will provide the most relevant information regarding a property’s depreciable base?

Multiple Choice

• Deed

• Bank confirmation of mortgage loan

• Closing statement

• Flood insurance policy

An understatement of reported net income for the current year would result from

a. an overstatement of ending inventory in the previous period.

b. an overstatement of ending inventory in the current period.

c. failure to record accrued payroll liabilities.

d. failure to record expiration of prepaid insurance.

The real risk-free rate of interest is 3%. Inflation is expected to be 2% this year and 3% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities?

(If financial calculator is used show those computations and show ALL work)