Answer:
50% tax on the amount not distributed as required
Explanation:
In this specific scenario, the individual will have to pay a penalty of 50% tax on the amount not distributed as required. This is mainly due to the fact that traditional IRA accounts require that distribution of benefits must begin no later than age 70½ if immediate annuities are used to pay for them. Failure to do so would have a consequence of a 50% tax on the undistributed amount, and must be paid by the owner of the account.
Answer:
10.00
Explanation:
We haven = 3
Pv = 1000
Rate if interest = 6%
Coupon = 5% x 1000
= 50
∆y = assumed to be 1%
The formula for convexity =
(V- + V+)-2Vo/Vo+(∆y)²
We first solve for Vo
Using the financial calculator
Vo = 973.26
Then we solve for V-
Pv = 1000
Pmt = 50
I = 5%
n = 3
V- = 1000
We solve for V+
I = 7%
Pmt = 50
N = 3
V+ = 947.51
Then the convexity is gotten by putting these values into the formula
= (1000+947.51)-2x973.26/973.26x(1%)²this is approximately
10
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The best thing that Marla should do in this type of problem is letter d, investigate the market. It is because in doing business especially to the field that she is going to take on, it is best to assess and evaluate the decision and the outcome of it. It is best to make sure if she could benefit from it and could be a potential as she runs the business.
Answer:
Letter B is correct. <u><em>Sales budget.</em></u>
Explanation:
The sales budget is characterized by a company's sales expectations for a given budget period.
Organizations typically present the sales budget in monthly or quarterly format, with relevant information coming from a variety of sources. The calculation is made according to the number of units sold in the first line, the expected average price in the second line and the total sales in the third line. It is important to remember that when there are marketing promotions there may be a unit price adjustment that must be specified in the sales budget.
So a well-crafted sales budget ensures the quality of offering the right price on the right product and quantity at the right time and place. For this is one of the essential steps for control and success of an organization, as it relates to the marketability of purchasing consumer goods and services.
Answer:
the amount that should be show more money for spending is $80
Explanation:
The computation of the amount that should be show more money for spending is as follows;
= Certificate of deposit × reward for saving or postponing consumption percentage
= $1,000 × 8%
= $80
hence, the amount that should be show more money for spending is $80
