Present value. The State of Confusion wants to change the current retirement policy for state employees. To do sohowever, the state must pay the current pension fund members the present value of their promised future payments.There are 210,000 current employees in the state pension fund. The average employee is 10 years awayfrom retirement, and the average promised future retirement benefit is $440,000 per employee. If the state has adiscount rate of 4% on all its funds, how much money will the state have to pay to the employees before it can start anew pension plan?How much money will the state have to pay to the employees before it can start a new pension plan?S(Round to the nearest dollar.)

Step 1: Step 2: Step 3: Step 4:

Answered: Present value. The State of Confusion…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Bemidji, Minnesota, needs $3,055,000 for its 2019 budget. Total assessed value of property in Bemidji is $254,583,333. What is the tax rate expressed as a percent, per $100, per $1,000, and in mills?
A privately run, for-profit, prison is considering ways in which it can cut its monthly costs and therefore increase profit. One idea it is considering is to pay a judge to guarantee convicted prisoners in poor health win their appeals and are set free. The prison believes it can realize the monthly cost savings below over the initial year of the plan. What is the present value of the first year's monthly cost savings? My answer is suppose to come up with 49701. This is the third time I have sent this problem threw I need to be credited for the other two times. I am waisting my questions by having to resubmit the questions 2 to 3 times. Please help thanks!! Month Savings ($) 1 3,500 2 6,000 3 6,500 4 9,000 5 9,000 6 9,000 7 9,400 8 9,800 9 4,800 10 5,000 11 2,000 12 3,500 Total 77,500
Present value. The State of Confusion wants to change the current retirement policy for state employees. To do so, however, the state must pay the current pension fund members the present value of their promised future payments. There are 240,000 current employees in the state pension fund. The average employee is 18 years away from retirement, and the average promised future retirement benefit is $480,000 per employee. If the state has a discount rate of 7% on all its funds, how much money will the state have to pay to the employees before it can start a new pension plan? How much money will the state have to pay to the employees before it can start a new pension plan? $ (Round to the nearest dollar.)
Please Do not Give image format and solve all parts Thank You
(Related to Checkpoint 5.2) (Future value) Bob Terwilliger received $15,209 for his services as financial consultant to the mayor's office of his hometown of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 4.32 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 150 years. How much money will the city receive in 150 years from Bob's generosity? The amount of money the city will receive in 150 years from Bob's generosity is $ (Round to the nearest cent.)
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One year from today, the U.S. government will spend roughly $850 (in billions) on Medicare andMedicaid reimbursements to hospitals and medical care providers. Assume the relevant discountrate is 5%.If expenditures on Medicare and Medicaid continue to grow at an annual rate of 4%,what is the present value of all future government expenditure on these programs? Answer correctly with proper explanation
A Municipality needs a new fleet of busses. They have a choice between a diesel fuel powered fleet and a natural gas powered fleet. The Diesel fuel fleet has an initial cost of $50,000,000. The annual maintenance is $1,000,000 per year, each and every year of the 10 years life expectancy of the fleet. In addition, there will be a carbon emissions tax that starts at $250,000 in year 2, and increases by $250,000 each and every year after that. At the end of the ten years the busses can be sold for $5,000,000. The Natural Gas fleet can be purchased for $60,000,000. The annual maintenance is $800,000 per year. There is no carbon tax on the fleet. However, there is a 65% chance of a $5,000,000 one time "Special Maintenance cost at year 7. Because of certain toxic parts on the bus engines, the municipality will have to pay $5,000,000 and the end of the bus life to dispose of them. Use the present value approach to determine which fleet is more cost effective. The cost of money is 6% For the…
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