In this scheme it is stated that a 5% contribution of salary will be matched by the firm. If the new employee is on a salary of $50,000, the following will be the contributions for the year.
Table 1; Total pension contribution
Salary 50,000
Employee contribution 2,500
Employer contribution 2,500
Total contribution 5,000
The calculation of an EAR is undertaken to assess a return when there are payments received on an investment over a period of time, with the calculation often needed due to the compounding effect; where interest is paid on the total value of an investment, which can include the interest from previous periods (Investopedia, 2016). However, in this case, looking only at the EAR that is gained from the matching process, and not any additional gains made by the underlying investment, there is no mismatch between the timing of the employees investment and the return created by the employers matching…
Business Summaries This chapter addresses the reasons that one should study business and businesses to begin with. The authors make the point that they do not intend for this to be a narrow study that just focuses on particular examples of successive and failed businesses, although it will include case studies too. But the major point of studying business, the authors write, is to provide a larger sense of what is needed