Answer:
Invest at a minimum of 7.5% annual simple interest
Explanation:
Given the goal of purchasing a boat that will cost $30,000 in 20 years, David needs to earn an interest computed below on his investment in the savings account.
Interest required = 30,000 - 12,000
= 18,000
Therefore the minimum rate of interest that will achieve this goal,
= Principal * rate * time = target amount
= 12,000 * R * 20 years = 18,000
= R = 18,000/(12,000*20) = 0.075 = 7.5%.
In addition, David could also continue his saving from his teaching job. This will reduce the minimum investment return required to achieve the goal.
<span>This statement is true. Since it is impossible to eliminate all spontaneity in life, planning for every little thing is just not viable. There will always be an issue that pops up, which will only create more stress if not planned for. So, yes, too much planning on the job can get in the way of truly enjoying it.</span>
In the year 2000, the US census showed that 9.1% of those over 75 had not married so the percentage is relatively low and from 75-84 yrs old, about 50% were still married, 40% were widowed and 5.4 % were divorced.
Answer:
Juanita's marginal tax rate is 42.5%
Explanation:
marginal tax rate = MTR
After tax yield of dividend paying stock is 8.1% * (1-0.15) = 0.069 = 6.9%
The after tax yield of the bond will be 6.9%
Therefore,
6.9% = 12.0% * (1 - MTR)
6.9% = 12.0% - 12.0% *MTR
6.9% - 12.0% = -12.0% * MTR
-0.051 = -0.12*MTR
MTR = 0.051/0.12 = 0.425
MTR = 42.5%
Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
