Complete Question:
A 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. Which is the BEST recommendation?
Group of answer choices.
A. Mid-cap common stock
B. Municipal bond
C. Bank CD
D. Treasure STRIPS
Answer:
C. Bank CD
Explanation:
In this scenario, a 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. A Bank certificate of deposit (CD) is the best recommendation.
A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.
Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.
<em>Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.</em>
Answer:
Equity at August 1st 0
adds: Carmen Camry Investment 101,4000
Net Income 5,410
Subtotal 106,810
Withdrawals -5,950
Carmen Camry capital account at the end of August 31th 100,860
Explanation:
We have to calculae the net income
Fees earned 26,960
office 5,200
rent expense 9,500
salaries expense 5,560
telephone expense 820
miscellaneous expenses 470
Total Expenses 21,550
Net Income 5,410
Then we do the equity stamtent:
beginning + investment + net income - withdrawals = ending
Equity at August 1st 0
adds: Carmen Camry Investment 101,4000
Net Income 5,410
Subtotal 106,810
Withdrawals -5,950
Carmen Camry capital account at the end of August 31th 100,860
Answer:
sunk cost.
Explanation:
Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered. Thus, because a sunk cost has been incurred by an individual or organization it can't be recovered and as such it is irrelevant in the decision-making process such as investments, projects etc.
Basically, sunk costs are referred to as fixed costs.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, a cost incurred in the past that is not relevant to any current decision is classified as a sunk cost.
For example, ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Answer:
c. 120
Explanation:
The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:
EOQ = 
EOQ = 
EOQ = 120
Answer:
C. adopt measures to fix wages and prices.
Explanation:
Between 1775 - 1783, the thirteen (13) colonies in Congress warred against the British because of its lack of colonial representation and the objection of the British to the direct taxation method introduced by the parliament. This war was known as the American revolutionary war or American war of independence.
Consequently, this war resulted in a deep economic crisis and inflation for the people of America.
To deal with this wartime economic crisis in 1779, Congress urged states to adopt measures to fix wages and prices such as refusal to issue continental dollars but resort to the issuing of tax adjustment notes, loan office certificates, warrants, quartermaster notes, etc.
