Note that the annual total government support could

  • No School
  • AA 1
  • 4

This preview shows page 3 - 4 out of 4 pages.

%25 support in entire accumulated amount at the end. Note that, the annual total government support could not be more than 7,500 TL. But, lkay will be able to get %60 percent of the government support if she quits the system at the end of year 10. Estimated annual returns on the pension deposits compounded monthly are given below to calculate the accumulated total amount in IPS. Year 1 2 3 4 5 6 7 8 9 10 Rate of Return (%) 11 10 8.5 9 10 9.8 10.2 12.3 12 11.8 Also, there will be an income tax of 10% for IPS returns to be calculated at the end of year 10 (see below **). In the lights of information supplied above, she wonders that: How
Image of page 3
reasonable are her goals? What will be the accumulated amount for the investment plan at the end of 10-year period? Note that you are supposed to perform analyzing your alternatives with at least using present worth and rate of return methods on Microsoft Excel. Notes: Income tax for bank deposits is to be deductible at the end of each compounding period: After Tax Effective Interest Rate * Effective Interest Rate - Tax Rate %15) - Income tax in IPS is to be deductible at the end of 10 years period: ** Net Income After Tax = Total Amount of Money Accumulated in IPS Total Amount of - ( Money Accumulated in IPS Total Amount - of Deposits for ) * ( Tax Rate Toxo ). IPS
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors