Answer:
the indifference between receiving $250 today or is $235.85
Explanation:
The computation of the indifference between receiving $250 today or is shown below:
Here we determine the present value
= Amount ÷ (1 + risk free rate of interest)
= $250 ÷ (1 + 0.06)
= $250 ÷ 1.06
= $235.85
Hence, the indifference between receiving $250 today or is $235.85
The same is relevant and considered too
Answer: $2,033.46
Explanation:
Social security taxes = 8,388 * 6.2% = $520.06
Medicare taxes = 8,388 * 1.45% = $121.63
Federal income tax withheld = $1,391.77
FUTA and SUTA are to be paid by the employer not the employee.
The total amount of taxes withheld from Portia is therefore:
= 520.06 + 121.63 + 1,391.77
= $2,033.46
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