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Anna007 [38]
1 year ago
15

a municipal finance professional wants to make a political contribution to a candidate for mayor in the town that she resides in

. under the msrb pay-to-play rule, a contribution to this candidate a) cannot exceed $100. b) cannot exceed $250. c) can be in any amount. d) is prohibited.
Business
1 answer:
Svetradugi [14.3K]1 year ago
4 0

Based on the MSRB pay to play rule, the contribution by the finance professional to the candidate b. cannot exceed $250.

<h3 /><h3>What is the MSRB pay to play rule?</h3>

This is a rule that governs financial dealings in municipalities between those in the municipal securities business and the non affiliated persons.

One of the rules states that a finance professional that is registered in a municipality cannot contribute more than $250 to a candidate running for Mayor as it might cause bias.

Find out more on the MSRB pay to play rule at brainly.com/question/14229649

#SPJ1

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PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

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Substitute the values into equation (1), we have:

PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)

PVA = $10,871.54

Step 2: Calculation of the present value if you receive these payments at the end of each year

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where:

PVO = Present value if you receive these payments at the end of each year = ?

Other values are as defined in Step 1 above.

Substitute the values into equation (2), we have:

PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)

PVO = $9,883.22

Step 3: Calculation of the difference in the present value

This can be calculated as follows:

Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32

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