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Mama L [17]
3 years ago
14

All the following investment instruments produce the same rate of interest. Which could be most advantageous for ia taxpayer res

iding in a state with a high state income tax rate?
A. Certificate of deposit

B. Commercial bond

C. U.S. Treasury note.

D. Municipal bond issued in the taxpayer's state of residence.
Business
1 answer:
Ghella [55]3 years ago
6 0

Answer:

D. Municipal bond issued in the taxpayer's state of residence.

Explanation:

Municipal bond -

It is the debt security , which is furnished by a country or any municipality , in order to finance the capital expenditure , like the construction of hospitals , school , bridges and highways , is referred to as the municipal bond.

These bonds are free from the federal taxes , local and state taxes , therefore is fruitful for people with high income tax brackets.

Hence, from the given statement of the question ,

The correct option is Municipal bond .

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For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do,
djverab [1.8K]

Answer:

The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.

This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.

The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.

8 0
3 years ago
Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the refurbishment cost at 5.95 p
Jlenok [28]

Answer:

The monthly payment is $2184.52

Explanation:

Given

Total\ Amount\ Spent\ = $220,000

Amount\ Borrowed = 60\%

Rate = 5.95\%

Duration = 6\ years

Required

Monthly\ Payment

Firstly, the loan amount has to be calculated

The Question says; of the total amount spent, only 60% was borrowed;

So;

Loan = 60\%\ of\ 220,000

Loan = 132,000

The monthly payment can then be calculated using the following formula

Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1}

Where P = Loan Amount = 132,000

r = rate of payment = 5.95% = 0.0595

n = duration (in month)

n = 6 years

n = 6 * 12 months

n = 72 months;

Substitute the above parameters in the formula;

Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1} becomes

Amount = 132,000 * \frac{0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = \frac{132,000*0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = \frac{132,000*0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(\frac{12.0595}{12})^{72}}{(\frac{12.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(1.0049583)^{72}}{(1.0049583)^{72} - 1}

Amount = 654.5 * \frac{1.42777239524}{1.42777239524 - 1}

Amount = 654.5 * \frac{1.42777239524}{0.42777239524}

Amount = 2184.51925155

Amount = 2184.52\ (Approximated)

<em>Hence, the monthly payment is $2184.52</em>

3 0
3 years ago
Mabbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A i
vagabundo [1.1K]

Answer:

d. $8.69

Explanation:

Activity rate for Activity 2 = Estimated Overhead Cost / Expected Activity

Activity rate for Activity 2 = $19,987.00 / 2300

Activity rate for Activity 2 = $8.69 per activity

7 0
3 years ago
Identify the careers that require a college degree and the ones that require only a certification.
ollegr [7]

biomedical engineer  - college degree

hairstylist  - certification

childcare director  - college degree

museum personnel  - college degree ??

sociologist  - college degree

tour guide - certification??

A couple of these I am not sure of but the others I am positive.

4 0
3 years ago
Read 2 more answers
You want to buy a new sports coupe for $74,400, and the finance office at the dealership has quoted you a loan with an apr of 6.
NeX [460]
Monthly payment = $1774.71 
Effective annual rate = 7.02% 
 The equation for a loan payment is
 P = r(PV)/(1-(1+r)^(-n))
 where
 P = Payment per period
 PV = Present value
 r = interest rate per period
 n = number of periods 
 Since the 6.8% interest rate is APR, we need to divide by 12 to get the interest per month. So in the above equation r = 0.068/12 = 0.005666667, the number of periods is 48 and the Present Value is 74400. Let's plug in the numbers and calculate.
 P = r(PV)/(1-(1+r)^(-n))
 P = 0.00566666666666667(74400)/(1-(1+0.00566666666666667)^(-48))
 P = 421.6/(1-(1.00566666666666667)^(-48))
 P = 421.6/(1-0.762439412691304)
 P = 421.6/0.237560587308696
 P = 1774.70516
 So the month payment rounded to 2 decimal places is $1774.71 
 The effective interest rate is
 ER = (1 + r/12)^12 - 1 
 Let's plug in the numbers and calculate.
 ER = (1 + 0.068/12)^12 - 1
 ER = (1 + 0.00566666666666667)^12 - 1
 ER = (1.00566666666666667)^12 - 1
 ER = 1.07015988024972 - 1
 ER = 0.07015988024972 = 7.015988024972% 
 So after rounding, the effective interest rate is 7.02%
8 0
2 years ago
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