Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $40,000 in 30 years. What is the comparable annual salary today, assuming an annual inflation rate of 4% (compounded annually)? (Round your answer to the nearest cent.)

$12,332.7467

Explanation:

Given that,

Yearly income, Amount = $40,000

Time period, t = 30 years

Annual inflation rate, r = 4%

Amount = Principle × (1 + r/100)^t

$40,000 = Principle × (1 + 4/100)^(30)

$40,000 = Principle × (1 + 0.04)^(30)

$40,000 = Principle × (1.04)^30

$40,000 = Principle × 3.24339751

$40,000 ÷ 3.24339751 = Principle

$12,332.7467 = Principle

Therefore, the comparable annual salary today, assuming an annual inflation rate of 4% is $12,332.7467.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

decentralization can the employees to get more involved in the business decision making