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Rasek [7]
3 years ago
15

Why does a taxminusdeferred retirement account accumulate more money than a taxable​ account, assuming the same amount is contri

buted every year and the accounts earn the same return every​ year?
Business
1 answer:
skad [1K]3 years ago
8 0

Answer:

Simply because tax-deferred accounts are taxed only when the investor receives or withdraws money from them. For example, a 401 (K)'s interest and capital gains are not taxed until the beneficiary retires and starts to receive payments, and that may take a long time.

It is not the same to be taxed immediately, because that reduces the amount invested. For example, you invest have $100 to invest and your income tax rate is 22%.

  • a tax-deferred account that earns 5% per year will earn $5, and then the principal will increase to $105 for the next, and keep earning more money.
  • a taxable account will only have a $78 after taxes are paid, and if it earns 5%, then it will only earn $3.90 at the end of the year, and the principal will increase to $81.90.

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Mullin, InC., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then
coldgirl [10]

Answer:

wholesaler

Explanation:

A wholesaler is part of the downstream supply chain. It operates by purchasing large amounts of certain goods and then reselling them to smaller retailers. Wholesalers act as intermediaries between small retailers that are unable to purchase large amounts from manufacturers, but still need to purchase them at a discount price. Generally, wholesalers do not sell directly to the general public, only to other smaller businesses.

7 0
2 years ago
Which PESTEL factors are the most salient for the electric vehicle segment of the car industry? Do you see a future for electric
irinina [24]

Answer:

Economical, technological, and ecological.

Explanation:

PESTEL factors that are most salient for the electric vehicle segment of the car industry are economical, technological, and ecological. Electric cars would be economic as compared to gas and other forms of energy used to run a car or any other vehicle.

7 0
3 years ago
Jim is researching different sources to fund his college education. Jim is torn between a federal loan and a private loan. With
Colt1911 [192]
The right answer for the question that is being asked and shown above is that: "A. Jim should choose the federal loan since he will not have to pay interest if he attends a public university." the loan should Jim choose is that he<span> should choose the federal loan since he will not have to pay interest if he attends a public university.</span>
3 0
3 years ago
A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 a
ICE Princess25 [194]

Answer:

<h2>In this case,the correct answer is option b. or real output rose and price level fell.</h2>

Explanation:

GDP Deflator in Macroeconomics,shows the inflation or deflation rate in a country within the specific time period.Hence,it measures the changes in the average price level of goods and services in any country or economy over a particular period of time.It is mathematically calculated by dividing the nominal GDP of the country or economy by its real GDP.Now,a decrease in the nominal GDP relative to the real GDP or GDP deflator implies an deflationary impact or an increase in the average price level of goods and services in the economy and vise versa.Note that in this case both the nominal GDP and GDP deflator decreased from 2009 to 2010 which advocates that the price level in the economy fell(deflation) and the real output or GDP rose or increased due to deflationary impacts as reflected by the decline in GDP deflator.

5 0
3 years ago
A manager from another restaurant says to you, "I’ve heard that Barcelona has a three-step hiring process. Candidates first have
SpyIntel [72]

Answer:

Both steps give candidates a realistic preview of the job.

Explanation:

When a manager from another restaurant says to you, "I’ve heard that Barcelona has a three-step hiring process. Candidates first have an interview in which Scott does most of the talking, and then they visit Barcelona restaurants and record their impressions. This seems like a lot of work. The basic purpose and logic behind these two steps is to give candidates a realistic preview of the job. With the help of these two steps in which candidates first have an interview with Scott and then visit Barcelona restaurants to get their impressions recorded, candidates can have a realistic, practical and genuine preview of the job. Candidates can come to know about the expectations which they can have from the job and the reality so they will not be surprised and shocked at all if their expectations does not meet the actual job's conditions and specifications.

7 0
3 years ago
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