Answer:
a. How much will Ruby’s IRA be worth when she needs to start withdrawing money from it when she retires?
the future value of Ruby's IRA = $10,000 x 21.725 (FV factor, 8%, 40 periods) = $217,250
b. How much money will she have to accumulate in her company’s 401(k) plan over the next 40 years in order to reach her retirement income goal?
she needs to accumulate $875,000 - $217,250 = $657,750 during the next 40 years
the annual contribution = FV / FV annuity factor = $657,750 / 259.057 (FV annuity factor, 8%, 40 periods) = $2,539.02 per year
Answer:
B. The primary advantage to municipal bonds is that interest income received is not taxed by the federal government.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A municipal bond can be defined as a type of bond that is typically issued by a municipality, county, local government or state in order to finance or sponsor capital expenditures for the public such as water supply, construction of roads, etc.
Hence, the primary advantage to municipal bonds is that interest income received on this type of bond is not taxed by the federal government.
Answer:
The correct answer is letter "B": flexible in both directions.
Explanation:
The ability that an individual, family or group of people develop to improve or worsen their economic condition is called economic mobility. It is measured in income terms and particularly, in the U.S. is flexible in both directions since, according to studies, Americans have proved to be able to get better living conditions but some of them have gone from good economic situations to poverty.
Answer:
The correct answer is Retained earnings: no effect; Paid-in capital: increase
Explanation:
The nominal value of a share establishes a limit price and no company can issue its shares at a lower price, although already issued, the price of the shares is subject to the market price. When capitalization of a corporation is required, it must be defined whether the capital will be obtained from current shareholders or new shareholders. If it is one of the existing ones, there are two options: either the cash contribution is received or the system of delivering dividends payable through shares is used, in which case, it should be clarified whether the shares delivered are preferential or privileged.
Answer:
Mary can cancel the transaction at any time before midnight of the third business day thereafter.
Explanation:
If she is having second thoughts about the deal , then Mary can cancel the transaction at any time before midnight of the third business day thereafter this is due to the fact that Mary may exercise the right to rescind or cancel the transaction until midnight on the third day after the transaction. She can cancel the deal at no cost to herself within 3 days of closing.
