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.
Answer:
D: All of the above
Explanation:
D. All of the above may be considered an appropriate action depending on the type of violation and the sponsoring partner’s corrective actions.
Failure to comply with these standards could result in, but is not limited to, the following:
• Your removal from all VITA/TCE Programs;
• Inclusion in the IRS Volunteer Registry to bar future VITA/TCE activity indefinitely;
• Deactivation of your sponsoring partner’s site VITA/TCE EFIN (electronic filing ID number);
• Removal of all IRS products, supplies, loaned equipment, and taxpayer information from your site;
• Termination of your sponsoring organization’s partnership with the IRS;
• Termination of grant funds from the IRS to your sponsoring partner; and
• Referral of your conduct for potential TIGTA and criminal investigations
Answer:
(a) $18,000
(b) $3,600
Explanation:
(a) Profit would be:
= (No. of shares × Undervalued) - (No. of shares × Overvalued)
= (1,800 × $16) - (1,800 × $6)
= $28,800 - $10,800
= $18,000
(b) Only half your order will be filled.
With rationing (and being an uninformed investor) we expect our profits:
= (No. of shares × Undervalued) - (No. of shares × Overvalued)
= (900 × $16) - (1,800 × $6)
= $14,400 - $10,800
= $3,600
Answer:
The value of price is $15.625
Explanation:
In the question, the formula is given for computing the value of the price.
The calculation is shown below:
Here, the total value would be 62.5 and the integer variable quantity is 4, so we easily compute the value of price
Price = Total ÷ Quantity
= 62.5 ÷ 4
= $15.625
The quantity should be expressed in units or some other measurement value, the price should be a dollar or any other monetary units.
