Answer:
D. is the rate that banks charge each other for short-term loans of excess reserves.
Explanation:
The federal reserves require banks to maintain a certain amount in their vaults to cater for possible withdraws. At the close of business every day, banks have to confirm they have the required amount. Should a bank fail to meet the requirement, it can borrow from other banks that have a surplus. The interest rate that banks charge each other for these transactions is the fed fund rate.
The Fed set the fund rate. It may increase or decrease it depending on the prevailing market condition. The banks use the fund rate set to determine the interest rates to be charged on loans and mortgages. A high fund rate means high-interest rates.
e. $0
SEP PLANS ONLY PERMITS EMPLOYER CONTRIBUTIONS.FOR A SELF -EMPLOYED INDIVIDUAL,CONTRIBUTIONS ARE LIMITED TO 25% OF YOUR NET EARNINGS FROM SELF-EMPLOYMENT (NOT INCLUDING CONTRIBUTIONS FOR YOURSELF) UP TO $57,000 (FOR 2020) ; $56,000 FOR 2019.
True
The answer to this question is true
Answer:
336,405.28
Explanation:
Present value can be found by discounting the cash flows at the discount rate.
Present value can be found using a financial calculator:
Cash flow from year 1 to 4 = 0
Cash flow from year 5 -25 = $70,000
Discount rate = 12%
Present value = $336,405.28
I hope my answer helps you
