Answered: It is highly likely that the projected…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Q1) It is highly likely that the projected retirement income based on the replacement ratio method may not be sufficient to pay for retirement expenses if inflation rates are _________ wage growth rates.

Q2) Which of the following statements is false?

a. If there are changes to an individual’s circumstances, the retirement plan should be reviewed.

b. When developing a retirement plan, one should ensure that he has contingency funds and sufficient insurance protection.

c. To better achieve one’s retirement funding objectives, the funding plan should not be modified under any circumstances.

d. Regular reviews on the plan should be conducted to ensure that the retirement funding objectives are met.

Q3) Mr. Clifton Chen, aged 39, recently purchased an endowment plan from an insurer that requires him to set aside $25,000 per year for the next 23 years till he retires at age 62. The first premium payment occurs at the beginning of the period. Assuming an inflation rate of 2% and an estimated rate of return of 3.2% from the endowment plan, what is the estimated future value of Clifton’s regular savings at age 62?

Q4) The ___________ method requires one to estimate annual retirement expenses when estimating required retirement income.

Q5) Planning for protection needs ensures that _______________.

a. there will be sufficient financial resources for one’s retirement

b. there will be sufficient savings to purchase a new home

c. the children’s education expenses will be well planned for

d. all financial obligations can be met in the event of death, disablement or critical illness

Q6) Jonathan is a Malaysian and works as a General Manager of APL Logistics Pte Ltd in Singapore. He started working on 1 May 2020 and earns $10,000 a month. As stated in his employment contract, if he completes at least 6 months of work with the company in a calendar year, he will also be entitled to receive a pro-rated bonus of up to 3 months payable in February of the following year. What is his taxable income (top line) under Section 10(1)(b) for YA2021? (not considering tax reliefs)

Group of answer choices

Q7) Mr. Phillip Po, aged 44, is planning to retire at age 60. He understands from his advisor that he currently has a retirement funding shortfall of $500,000 at age 60 when he retires. His financial planner has recommended a regular savings plan in unit trusts as a suitable product to help him meet the retirement funding shortfall. Assuming that the inflation-adjusted rate of return on unit trusts is 3.8%, what is the regular savings which Phillip will need to set aside yearly till his retirement?

Q8) Sime Electronics Pte Ltd appointed Ray White (Australia) to provide a valuation report for its properties in Sydney, Australia. The report was sent to Singapore and Sime Electronics Pte Ltd paid Ray White (Australia) $60,000. Is this fee taxable in Singapore?

a. Yes

b .Partially

c. No

d. Depends

Q9) Which of the following 2 questions are used for the 2-stage test for mental capacity?

I. Does the individual have an impairment of or a disturbance in the functioning of his mind or brain?
II. Does the individual have any vested interest to behave in a way that suggests that he cannot exercise his mental faculties properly?
III. Does the impairment or vested interest cause the person to be unable to make a specific decision at the time it needs to be made?
IV. Does the impairment or disturbance cause the person to be unable to make a specific decision at the time it needs to be made?

a. I and IV

b. II and IV

c. I and III

d. II and III

Q10) The investment capital gains tax rate in Singapore on sale of property and shares is ________.

a. 10%

b. 15%

c. 0%

d. 20%

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions