If some contributions to your pension or annuity plan were prior combined in gross income, you can omit the part of the distributions from income. You must know the tax-free part when the payments start. The tax-free part normally stays the same each year, even if the amount of the payment changes. Nevertheless, the whole amount of your pension or annuity that you can omit from your income is typically defined by your total cost.
Answer:
The time value of money is used to determine the fair value of the transaction ( B )
Explanation:
If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.
therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money
the rate expected on the treasury bill is 8.57%. enter answer as a percent rounded to 2 decimal places.
The real rate is 2.1 percent
The inflation rate is 3.4 percent
To find the rate which is to be expected on a treasury bill we have to apply fisher's equation
1+R= (1+r)(1+h)
Therefore, the rate on the treasury bill can be calculated as follows
1+R= (1+r)(1+h)
r= 3.4%
= 3.4/100
= 0.034
h= 5%
= 5/100
= 0.05
R= (1+r)(1+h)-1
= (1+0.034)(1+0.05)-1
= (1.034×1.05)-1
= 1.0857-1
= 0.0857×100
= 8.57%
A Treasury invoice (T-invoice) is a brief-term debt obligation backed via the U.S. Treasury Department with an adulthood of one year or less. Treasury bills are generally bought in denominations of $1,000 even as a few can attain a denomination of $five million.
let's say an investor purchases a par price of $1,000 T-bill with an aggressive bid of $950. whilst the T-invoice matures, the investor is paid $1,000, thereby income $50 in interest on the funding.
U.S. Treasury bills are auctioned on a regular schedule. individuals should purchase T-payments from the government using the TreasuryDirect internet site. it is free to register, and it'll function like a brokerage account that holds your bonds. in addition to bidding on new troubles, You also can install reinvestments into securities of an equal type and time period. as instance, you can use the proceeds from a maturing fifty-two-week invoice to shopping for some other fifty-two-week invoice. sure brokerage corporations can also permit buying and selling in U.S. Treasuries.
To learn more about treasury bills visit here:
brainly.com/question/17204626
#SPJ4
Answer:
d. Statements a and c are correct
Explanation:
The primary market is the market where for the first time the new securities such as shares, stocks, bonds, etc. are being sold to the general public or we can refer initial public offer. The initial public offer is an example of the primary market
On the other side, the secondary market is that market where the shares are bought or sold through the investors after the sale to the public at large.
Macroeconomics is important because it allows the public to understand the economy as a whole, fiscal policy and global economic policy.
