Answer:
Right
Explanation:
Right if you expect tax rates to go up or because right now you are starting your career and your tax bracket would be lower now than what it will be later on. When you are older and in retirement, you would want to save your money and not have to worry about any taxes.
Answer:
Total estimated bad debts = $9,400
Explanation:
days outstanding A/c Receivable % estimate
0-30 $77,000 1 $770
31-60 $46,000 4 $1,840
61-90 $39,000 5 $1,950
91-120 $23,000 8 $1,840
over 120 $15,000 20 $3,000
Total 200,000 $9,400
Answer:
The correct answer is $1,000.
Explanation:
According to the scenario, the given data are as follows:
For one year
Bond pay (p) = $50
Time period (t)= 1 year
Interest rate (r) = 5%.
So, Price of bond for 1st year = p ( 1 + r)^-t
By putting the value, we get
Price of bond for 1st year = $50 ( 1 + 0.05)^-1 = $47.62
For Second year
Bond pay (p) = $1,050
Time period (t)= 2 year
Interest rate (r) = 5%.
So, Price of bond for 2nd year = p ( 1 + r)^-t
By putting the value, we get
Price of bond for 2nd year = $1,050 ( 1 + 0.05)^-2 = $952.38
So, Total price of the bond = Price of bond for 1st year + Price of bond for 2nd year
= $47.62 + $952.38
= $1,000
