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3 years ago

What is the primary source of revenue for the government?

Business

1 answer:

kykrilka [37]3 years ago

5 0

Answer:

Individual income tax

Explanation:

Well are government uses tax for the USA too fund money for the government so the first one is right.

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3. Suppose Tyrone wants to open a savings account that earns 3.5% simple interest per year. He wants it to be worth $1500 in 4 y

saw5 [17]

Answer:

$1,307

Explanation:

The computation of the future value by using the following formula is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

$1,500 = Present value × (1 + 0.035)^4

So, the present value is

= $1,500 ÷ (1.035)^4

= $1,307

Hence, the present value is $1,307 and the same is to be considered

3 0

3 years ago

Bond J has a coupon of 7.6 percent. Bond K has a coupon of 11.6 percent. Both bonds have 12 years to maturity and have a YTM of

elena55 [62]

Answer:

Bond J has a coupon of 7.6%

Bond K has a coupon of 11.6%

12 years to maturity and YTM of 8.2%

first we must determine the current market price of both bonds using the yield to maturity formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 8.2%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

current market value of Bond J:

0.082 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.082 = 76 + [(1,000 - PV) / 12]

41 + 0.041PV = 76 + 83.33 - 0.083PV

0.124PV = 118.33

PV = 118.33 / 0.124 = $954.27

current market value of Bond K:

41 + 0.041PV = 116 + 83.33 - 0.083PV

0.124PV = 158.33

PV = 158.33 / 0.124 = $1,276.85

a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 8.2% + 2.2% = 10.4%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

market value of Bond J:

0.102 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.102 = 76 + [(1,000 - PV) / 12]

102 + 0.051PV = 76 + 83.33 - 0.083PV

0.134PV = 157.33

PV = 57.33 / 0.134 = $427.84

market value of Bond K:

102 + 0.051PV = 116 + 83.33 - 0.083PV

0.134PV = 97.33

PV = 97.33 / 0.134 = $726.34

Bond J's market price will decrease by ($427.84 - $954.27) / $954.27 = -55.17%

Bond K's market price will decrease by ($726.34 - $1,276.85) / $1,276.85 = -43.11%

b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 6%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

current market value of Bond J:

0.06 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.06 = 76 + [(1,000 - PV) / 12]

30 + 0.030PV = 76 + 83.33 - 0.083PV

0.113PV = 129.33

PV = 129.33 / 0.113 = $1,144.51

current market value of Bond K:

30 + 0.030PV = 116 + 83.33 - 0.083PV

0.113PV = 169.33

PV = 169.33 / 0.113 = $1,498.50

Bond J's market price will increase by ($1,144.51 - $954.27) / $954.27 = 19.94%

Bond K's market price will increase by ($1,498.50 - $1,276.85) / $1,276.85 = 17.36%

8 0

3 years ago

The assets of a company total $738,000; the liabilities, $219,000. what are the net assets?

ziro4ka [17]

739,000 - 219,000 = 520,000

The net assets are assets minus liabilities, so it is $520,000 in this case.

4 0

3 years ago

Which of the following statements concerning consumption is incorrect? Group of answer choices Wealthy people consume more than

Liono4ka [1.6K]

Answer:

Savings rates decrease as income increases.

Explanation:

Consumption can be defined as the use of goods and services by the household or end users.

The true and correct statements about consumption are;

1. Wealthy people consume more than other people.

2. Expectations about future prices affect consumption.

3. Tax increases reduce consumption.

The incorrect statement concerning consumption is that, savings rates decrease as income increases because an increase in income generally result in an increase in savings rates.

3 0

3 years ago

Keurig created a new category of coffee/tea preparation by offering one-cup-at-a-time pod-style brewing with its "K-cups." Keuri

Citrus2011 [14]

Answer:

The correct word for the blank space is: transformational.

Explanation:

Transformational innovations look for providing a new product or service to the market or giving an existing product differently. The innovation aims to increase the satisfaction of consumers or to solve a problem that was not addressed properly before. Transformational innovations generate a differential advantage for businesses attracting more consumers, therefore, increasing revenue.

7 0

3 years ago