Robin Small Pays Her Three Workers $180, $450, and $615

question 7

Short Answer

Robin Small pays her three workers $180, $450, and $615, respectively, per week. Calculate what Robin will pay at the end of the first quarter for (A)state unemployment and (B)federal unemployment. Assume a state rate of 5.8%. Federal rate is .6%. Base is $7,000.

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Definitions:

Compounded Monthly

A method of calculating interest in which the interest accrued in each month adds to the principal for the calculation of subsequent interest.

Effective Annual Rate

The interest rate that is annually compounded, taking into account the effects of compounding.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Opportunity Cost

The financial consequence of skipping the immediate secondary choice while deciding.