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1 year ago

What risk does Sarah run if she chooses a long-term care policy with a short benefit period of 2 years

1 answer:

3 0

The risk that Sarah run if she chooses a long-term care policy with a short benefit period of 2 year is: d. Both a and c.

<h3>What is long-term care policy?</h3>

Long-term care policy can be defined as the type of policy that help to cover medical expenses or medical cost for a long period of time.

Choosing a long-term care that has a short health benefit has some risk reason being that in a situation where she needs medical care beyond the stipulated two years , Sarah will have to pay for the cost of those medical care from her savings.

Inconclusion the risk that Sarah run if she chooses a long-term care policy with a short benefit period of 2 year is: d. Both a and c.

Learn more about long-term care policy here:brainly.com/question/24167880

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4. An investment offers $10,000 per year for 20 years. If an investor can earn 6 percent annually on other investments, what is

telo118 [61]

Answer:

PV= $114,699.21

Explanation:

Giving the following information:

Annual payment= $10,000

Number of years= 20

Interest rate= 6%

<u>To calculate the present value, we need to use the following formula:</u>

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

A= annual payment

PV= 10,000*{(1/0.06) - 1 / [0.06*(1.06^20)]}

PV= $114,699.21

8 0

3 years ago

Ingvar Kamprad’s influence over IKEA may have even been stronger than that of Sam Walton over Walmart because IKEA is a privatel

julia-pushkina [17]

Answer:

There are similarities in the way businesses are run, but the management and influencing capacity on both are completely different.

Though during the founding days both the organizations, IKEA and Walmart operated under direct influence of the founders.

Also, power and responsibility is more shared, though there would be some adaptation and conflict changes that is expected, but it is differently structured than Walmart and would not suffer much.

Explanation:

Solution:

Now,

There are similarities in the way businesses are run, but the management and influencing capacity on both are completely different.

Though during the founding days both the organizations, IKEA and Walmart operated under direct influence of the founders.

Where as Walmart still had a lot of key decisions directly made through the founders,

Key global expansion

Key local management

Everything was micro managed from the HQ through Sam.

But after the few years of success, the model of IKEA remained same but they went to several countries and became more regional.

Global decisions were made from The HQ under the direct supervision of Ingvar But all the key regional war was given to a CEO, who had all the decisions to make.

This way there was a lot of power sharing and responsibility distributed. In case of any problem, HQ has interruptions to make it correct.

This implies power and responsibility is more shared, though there would be some issues and adaptation changes that is expected, but it is differently structured than Walmart and would not suffer that much.

Therefore, No the effect would not be similar to that of Walmart leadership transition.

7 0

3 years ago

You expect to receive $20,000 at graduation one year from now. you plan on investing it at 6 percent until you have $100,000. ho

Free_Kalibri [48]

The answer will be $120,000

4 0

2 years ago

Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if,

yulyashka [42]

Answer:

The question is not complete.

Here is the complete question:

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule)

Required:

a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $40,000 of additional deductions?

Here are the answers:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according IRS tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

6 0

3 years ago

A customer has made an investment that pays $20 of interest during its first year and that has appreciated by $250, for a year-e

love history [14]

Answer:

0.2571 or 25.71%

Explanation:

In this case, even though the initial amount invested is not given, it can be found by subtracting the amount by which the investment appreciated of the year-end value:

$A = \$1,300 - \$250\\A = \$1,050$

The return rate is given by the interest payed added to the amount appreciated, divided by the initial investment:

$r=\frac{\$250+\$20}{\$1,050} \\r=0.2571= 25.71\%$

The customer's total return is 0.2571 or 25.71%

6 0

3 years ago