Under the NBA Deferred Compensation Plan, Payments Made at the End

question 77

Essay

Under the NBA deferred compensation plan, payments made at the end of each year accumulate up to retirement and then retirees are given two options. Option 1 allows the retiree to select the amount of the annual payment to be received, and option 2 allows the retiree to specify over how many years payments are to be received. Assume Hardaway has had $6,000 deposited at the end of each year for 30 years, and that the long-term interest rate has been 8%.
Required:
a. How much has accumulated in Hardaway's deferred compensation account?
b. How much will Hardaway be able to withdraw at the beginning of each year if he elects to receive payments for 15 years?
c. How many years will Hardaway be able to receive payments if he chooses to receive $65,000 per year at the beginning of each year?

Understand the effect of a principal’s death on agency relationships and agent authority.

Grasp the nuances of express, implied, and apparent authority within agency law.

Recognize the conditions under which an agency relationship does not terminate.

Differentiate between employees, gratuitous agents, and independent contractors within the context of agency law.

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Definitions:

Top Executive

A high-ranking official in an organization, usually responsible for major decision-making and strategy.

Shared Leadership

Shared leadership is a leadership approach where members of a team or group share the responsibility, authority, and roles of leadership, rather than leadership being vested in a single individual.

Self-Managed Operational Team

A group of employees who are given the autonomy to manage their own tasks and make decisions without direct supervision, often within an operational context.

Virtual Team

A group of individuals who work together from different geographic locations, connected by technology.