If the maker of a note does not pay at maturity, _________

g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits

arsen [322]

Answer:

If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?

Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000

she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year

What might prevent her from perfectly smoothing consumption?

First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.

4 0

3 years ago

Intellectual ___________ is intangible creative work that is embodied in physical form and includes copyrights, trademarks, and

Reika [66]

Answer:

The correct answer is property.

Explanation:

Intellectual property, unlike physical property, is intangible creative work. It refers to the creation of the human mind and intellect. It includes artistic and literary works, inventions and innovations.

There are many types of intellectual property. The main types are

Copyrights
Trademarks
Patents
Trade secrets

The intangible nature of these properties makes it difficult to manage as compared to physical property.

6 0

4 years ago

Fifteen years ago, Lenny purchased an insurance policy on his own life. The policy provides a $3 million death benefit. Lenny ha

dalvyx [7]

Lenny will generate $471,250 after-tax cash.

<h3>What is an insurance policy?</h3>

The insurance policy, which establishes the claims that the insurer is legally obligated to pay, is a contract between the insurer and the policyholder.
The insurer guarantees to reimburse losses brought on by risks covered by the policy language in return for an upfront payment known as the premium.

<h3>What is a cash surrender value?</h3>

If a policyholder or the owner of an annuity contract chooses to cancel their policy before it matures or an insured event occurs, the insurance company will give them the cash surrender value as compensation.

<h3>Solution -</h3>

Money Lenny will get = $725,000.

Subtract the tax to find the money Lenny will get.

35% of 725,000 = $253,750.

$725,000 - 253,750 = 471,250$

Therefore, Lenny will generate $471,250 after-tax cash.

Know more about compensation here:

brainly.com/question/19646648

#SPJ4

6 0

2 years ago

The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering

user100 [1]

Solution :

1. Incremental analysis when the demand for the decorated umbrella is 10,000 units.

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80000 $190000 $110000

$\text{Less: Variable cost}$ $ 45000 $120000 $75000

Contribution $35000 $70000 $35000

$\text{Less: Additional}$ --- $10000 $10000

development cost.

$\text{Differential profit}$ $35000 $60000 $25000

The company earns an additional profit of $\$25,000$ if it decorates and sells the Rosa umbrella.

2. The company, Mohave should add the decorations to the Rosa umbrella as this would increase the net revenues of the company by an amount of $25,000.

3.a. The demand for he decorated umbrella will fall to 8,000 units due to the higher price. If the company does not make any changes to the Rosa umbrella, it could sell 10,000 units.

The incremental profit or loss is :

Incremental analysis when the demand for the Rosa umbrella is 10,000 units and for the decorated umbrella is 8,000 units is given below:

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80,000 $152,000 $72,000

$\text{Less: Variable cost}$ $45,000 $96,000 $51,000

Contribution $35,000 $56,000 $21,000

$\text{Less: Additional}$ ---- $10,000 $10,000

development cost.

$\text{Differential profit}$ $35,000 $46,000 $11,000

The incremental profits are : $11,000.

3.b. The company should decorate and sell 8000 units of the decorated umbrellas as the increase in the net profit is $11,000.

8 0

3 years ago

According to the U.S. Census Bureau’s Current Population Survey, the mean and median 2014 income of people aged 25 – 34 years wh

juin [17]

Answer:

B. The mean is $51,754 and the median is $44,167. This is because economic variables are usually skewed to the right, which pulls the mean above the median.

Explanation:

The mean income of $51,754 obtained from the 2014 income of people aged 25 - 34 years with only a bachelor's degree is the average incomes. It is obtained by adding all the incomes in the data set and then dividing by the number of values in the set. The median of $44,167 is the middle value when this data set is ordered from least to greatest while the mode is the number that occurs most often in the data set.

4 0

4 years ago

If the maker of a note does not pay at maturity, __________.