Task Part 2 At the age of 67, due to circumstances beyond their control, the employee has to withdraw $75 000 from their superannuation account. The employee is then faced with a choice: Put the remaining balance into an interest-bearing account with a guaranteed return of 3.25% per annum; or Delay retirement and continue working for an additional 3 years (i.e. up to the age of 70), but on a part-time 0.4 FTE basis, with the contribution rate locked at 9.5%, no further pay increases, but a guaranteed return of 3.5% compounded quarterly into superannuation. Step to help answer Part 2 4. For the interest-bearing account option, determine how long it would take the account balance to recover from $675 000 to $750 000 assuming the guaranteed return of 3.25% per year. 5. Determine the final superannuation account balance after 3 years if the employee decides to keep working. Does the employees balance recover from the withdrawal made at age 67? 6. Finally, finish with a conclusion summarizing the employees final outcomes - with specific reference to the value you selected in step 2 and the value obtained in step 3. Given the volatility of superannuation returns, do you believe the employee can achieve their savings target? What are the possible implications for the employee if this does not occur? MATH1003 Assessment 3 S3 2021 4 Question 2: Determining optimum profitability and employment (15% out of 45%) Renata and Jerome operate a company that makes miniature electronic surveillance drones from a warehouse in an industrial estate. Each drone costs them $49 to make and has additional fixed costs of $275 (per drone). On average, Renata and Jerome sell 85 drones per week for a price of $64 each. Renata and Jerome then decide to have a sale and reduces the price of each drone to an even numbered price between $54 and $60 inclusive. During the sale, they sell on average 150 devices per week. Task 1. Select your own price value between $54 and $60 and determine the price-demand function for this situation. HINT: Consider creating a pair of simultaneous equations. 2. Determine the Total Revenue function and Total Profit functions. 3. Determine Renata and Jeromes break-even point(s). If there is more than one break-even point, what do the values obtained represent? 4. Plot Total Cost, Total Revenue and Profit Functions on the same set of axes: 5. Find the Marginal Revenue (MR) and Marginal Cost (MC) functions by differentiation and determine the level of output q at which MR = MC. With reference to your Excel plot, what conclusion can you make about this value? 6. Confirm the maximum profit point (q) by differentiation in a way that proves that the point is indeed a maximum. Also, confirm the amount of profit at that point by substitution. 7. The productivity of labour function for Renata and Jeromes company is given by the equation Q = 3.8 0.09L. Renata and John currently employ X workers. Determine a. marginal productivity of labour for this number of employees and b. the number of employees that would optimise productivity 8. Write a conclusion in which you summarise your interpretation of the results obtained. a. Is the sale a viable proposition for Renata and Jerome based upon your calculations? b. Is the current number of workers ideal for Renata and Jeromes company? c. State any underlying assumptions and limitations that could influence your calculations and what might occur if these assumptions and limitations did not hold firm over time.

this part 2 follows on from part 1 questions here

1: Using Indices and Compounding Interest (15% out of 45%) A 61-year-old employee considers their retirement savings strategy. Based upon the year in which they were born, the employee will be eligible to retire at the age of 67. The employee is aiming to have $750 000 in their superannuation account upon reaching retirement. Task Part 1 Using information given, determine the average rate of return required for the employee to reach this savings target. Useful Information The employees current superannuation balance (at age 61) is $500 000. The employees current annual salary (at age 61, after tax) is $72 000, of which they can contribute between 9.5% and 12% towards superannuation Contributions towards superannuation are themselves taxed at a rate of 15% The employees salary over the next 6 years is predicted to change as follows: At the end of Year 2, a pay increase of 1.5% At the end of Year 4, a pay increase of 2.25% At the end of Year 5, a final pay increase of 0.75% uestion below