Answer:
$150
Explanation:
Calculation of how much income that Gramps will recognize on the first payment.
Since joint survivor annuity has 23.1 as the annual return multiple .
Calculation for Expected return
Expected return =Annual payment *Return multiple
($500*12) =$6,000
$6,000×23.1
=$138,600
Therefore :
$97,020/$138,600
=0.7×100
=70%
The 70% of each of the payment will be the return of capital while the 30%(100%-70%) will be the income.
Hence the first payment be:
30%×500
=$150
Therefore the amount of income that Gramps will recognize on the first payment will be $150
Answer:
Sacagawea Dollar
Explanation:
The famous coin was known as Sacagawea
Answer:C
Explanation:
If the Federal Government buys bonds, it means it is increasing money supply on the market. Prices and interest rates therefore increase including the reserve ratio
Answer:
It seems that something is missing in question i.e b) what is the after state taxes profit in the state with the 2% tax rate.
Answer for both requirement is given below in explanation with calculation.
Explanation:
A) After tax profit where state tax is 10%
The after tax profit will be 1,278,000$ (1420000*90%)
B) After tax profit where state tax is 2%
the after tax profit will be 1,352,400$ (1380000*98%)
So we can conclude that option 2 is better because it gives greater after tax profit.