Mr. Rahman is currently trying to calculate his Provident Fund (PF) since he hasdecided to leave his job at Nestle Bangladesh. He has served the organization for4 years with clean record. Every month, 5% of his basic salary (Tk. 36,500) hasbeen contributed toward the provident fund and every year his base pay hasbeen incremented by 10%. Calculate how much PF he will he receive in total? Thecontribution schedule has been given below:No. of years servedProportion of employer's contribution5 years and above100% match4 years80% match3 years60% match2 years20% matchLess than 2 years0% match

Provident fund refers to an investment in which some portion of salary is contributed by the…

Answered: Mr. Rahman is currently trying to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A man wants to have P500,000 to pay for the downpayment of a new house. In order to have this money, he sets up a fund earning 12% compounded monthly and deposits P40,000 at the end of each month for as long as necessary. When is the earliest time will he have at least P500, 000 in the fund?
Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on The Price Is Right (valued at $14,600) and $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much from these will she have to include in her federal taxable income?
OHaganBooks.com has just introduced a retirement package for its employees. Under the annuity plan operated by Sleepy Hollow, the monthly contribution by the company on behalf of each employee is $700. Each employee can then supplement that amount through payroll deductions. The current rate of return of Sleepy Hollow's retirement fund is 7.1%. Jane Callahan, the website developer at OHaganBooks.com, plans to retire in 10 years. She contributes $1,000 per month to the plan (in addition to the company contribution of $700). Currently, there is $40,000 in her retirement annuity. How much (to the nearest dollar) will it be worth when she retires? (Assume interest is compounded monthly.) $
This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $78,300 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) Interest paid on accumulated student loans Cost of purchasing a delivery uniform Contribution to State University deliveryman program $1,200 3,000 1,600 1,400 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. Evan's AGI Taxable income
Last year, Dani maximized her TFSA contribution limit by contributing $30,000 to her TFSA. This year, her contribution limit is $7,000. The $30,000 that Dani contributed last year has grown to $32,000. She contributed nothing this year but withdrew the entire amount of $32,000. Assuming next year's limit is also $7,000 how much can Dani contribute to her TFSA next year?
Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 11%. Paul is not insulted by this reduction in pay and accepts his new location and salary gladly. He researched that the cost of living index in California is 132 whereas the cost of living index in Tennessee is 95. Over the next five years, what is the FW of Paul’s extra income/improved life style (through the reduced cost of living) fromhavingmade this move? Paul’s MARR is 10% per year (im).
You've just been hired by RhombiData. The new job includes company contributions to a qualified savings plan. RhombiData will make an annual contribution of $4,000 in Year 1 (payments are made all at once at the end of the year), but will then raise the amount it contributes by 3.0% annually for 7 years (Years 2 through 8); and then, as a loyalty incentive, will raise the annual increase to 5% annually starting with the Year 9 contribution. You anticipate that the average annual return on all contributions will be 7% compounded annually (which you also consider your discount rate). You plan to retire in 19 years, when RhombiData will have made 19 contributions-making all contributions on the last day of the year, including one on your last day of work. You know your salary amount but are trying to assess the value today of the company contributions to your savings plan. (You are excluding the value of your own savings contributions.) In today's dollars (PV), what are the nineteen (19)…
Old age comes to everyone. So does poor health, sickness and unemployment. Financial planning is crucial while young. On this note, Raeez started his retirement fund 3 years ago during which he made a monthly contribution of P1500 to SUNLIFE of Canada (Phils.) without fail. Apart from the life insurance and medical insurance, SUNLIFE offered an interest rate of 0.5% per month for the first 2 years and 1% per month thereafter. Today, Raeez's income has improved and so he thought of setting aside a monthly savings of P3000 for the next 5 years and P5000 per month for another 2 years thereafter. Then, he plans to retire. SUNLIFE likewise offered an attractive return of 2% per month after the 5th year of continuous savings. Assuming that Raeez was diligent in his monthly payments, what is the future worth of his savings by the time of his retirement?
Sam started working for the LED company on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM. Use 4 decimal places in between process and 2 decimal for the final answer kindly substitute the values on the formula you're going to use. Thankyouu
Godfred & Sam are both at 40. At 20, Sam started saving GH¢100 per month at a bank that pays him 10% per annum towards his retirement. 10 years later Godfred opened a similar account, except that his contributions were GH¢200 at the end of each month also towards his retirement. Would you rather be Sam or Godfred? Your older brother turned 35 today, & he is planning to save GH¢7,000/year for retirement, with the first deposit to be made one year from today. He will invest in a mutual fund that's expected to provide a return of 7.5%/year. He plans to retire 30 years from today, when he turns 65, & he expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can he spend each year after he retires? His first withdrawal will be made at the end of his first retirement year You want to endow a chair for a female professor of finance at your alma mater. You’d like to attract a prestigious faculty member, so you’d like the endowment to add…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS