Answer:
The correct answer is letter "B":You have to earn below a certain amount to make contributions .
Explanation:
A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.
Answer:
The best method of distributing the resources is Equity.
Explanation:
Under the equity method of distribution, the resources are paid on the basis of their performance. This method focuses on the performance of the employees. More the hard work more will be the bonus. It is a fair method of distribution of resources.
Explanation:
1. An annuity is a number of equivalent payments made. For instance, the annuities include daily savings account deposits, monthly home loan payments, monthly insurance and pension payments. Annuity can be defined by the payment dates frequency.
Difference between an ordinary annuity and an annuity due:
In each period certain annuities shall pay the same amount, while varying annuities that differ in amounts. At the end of each time, payments in the standard annuity take place. In comparison, payments for an annuity due are made at the start of the contract.
2. The number of y-axis and discount rate on the x-axis is usually present in an annuity table. Place them on the table for your annuity and then place the cell in which they meet. Multiply the cell number by the amount of money each time is earned.
3. The annuity table contains the amount of contributions you expect to collect at a given interest rate plus a list of equivalent payments. You come to the current value of the payments when you subtract this element by one of the payments. As a quick guide the preceding annuity table includes only figures for discrete intervals and interest rates, which may be not quite the same as a real world scenario.
Answer: The effective annual rate (EAR) is<u><em> the interest rate that would earn the same interest with annual compounding.</em></u>
The Effective Annual Rate (EAR) is know as the interest rate earned on a subject/asset or remunerated on a borrowing as a consequence of compounding interest over period of time.
The formula to compute effective annual rate is as follow:
![Effective Annual Rate = [1 + \frac{interest rate}{compounding periods}]^{time periods} - 1](https://tex.z-dn.net/?f=Effective%20Annual%20Rate%20%3D%20%5B1%20%2B%20%5Cfrac%7Binterest%20rate%7D%7Bcompounding%20periods%7D%5D%5E%7Btime%20periods%7D%20-%201)
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<u><em>∴ Option (c) is correct.</em></u>
