Annual compounding pays more money than daily compounding. (true or false)

You are looking at three different job options, one in Pennsylvania, one in Texas, and one in New York. The offers are as follow

tamaranim1 [39]

Answer:

Texas will be a better option as the net pay after income tax is higher than the other cities.

Explanation:

To consider the after-tax wages we must subtract the income taxes from the salaries:

Pennsylvania after tax income: 62,000 x (1-3.07%) = 60,096.6

Texas after tax income: 64,000

New York after tax income: 68,000 x ( 1 - 6.85%) = 63,342

5 0

2 years ago

poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year. she is aware

pshichka [43]

In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.

<h3>What is interest reinvestment risk?</h3>

Reinvestment rate risk can be described as the risk that should be considered in the case whereby the investor have the reason to carry out reinvestment in regards with the future cash flows which could come inform of a lower return as a result of the interest rate declines.

It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.

Read more about risk at:

brainly.com/question/17583177

#SPJ1

4 0

1 year ago

Lincoln Park Co. has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1

Reil [10]

Answer:

value of the bond = $2,033.33

Explanation:

We know,

Value of the bond, $B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}$

Here,

Face value of par value, FV = $2,000

Coupon payment, I = Face value or Par value × coupon rate

Coupon payment, I = $2,000 × 6.04%

Coupon payment, I = $128

yield to maturity, i = 6.1% = 0.061

number of years, n = 15

Therefore, putting the value in the formula, we can get,

$B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]$

or, $B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]$

or, $B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635$

or, $B_{0} = [128 * 5.5623] + 1,321.3635$

or, $B_{0} =$ $711.9738 + 1,321.3635

Therefore, value of the bond = $2,033.33

3 0

3 years ago

Authors<br> d. p. rosenbaum and g. ganson concluded that the<br> d.a.r.e. program _________.

Pani-rosa [81]

Drug Abuse Resistance Education (D.A.R.E.) is a police officer-led arrangement of classroom exercises that shows kids (normally in rudimentary or center school) how to remain tranquilize free and oppose peer weight.

According to Rosenbaum and Hanson (1998), D.A.R.E has no critical in general effect on utilizing cigarettes or liquor

They concluded that, Given the tremendous uses in time and cash required with D.A.R.E., no doubt proceeded with endeavors should center around different systems and projects that may deliver more significant impacts.

5 0

3 years ago

You put $10000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later (7 year

ikadub [295]

Answer:

money deposited after end of 3rd year is $4877.75

Explanation:

given data

initial amount = $10000

rate = 5%

time = 3 year

after 7 year account balance = $20000

solution

we consider here money deposited after end of 3rd year is = x

first we get here compounded amount after 3 years as

compounded amount = initial amount × $(1+r)^{t}$ ................1

compounded amount = 10000 × $(1+0.05)^{3}$

compounded amount = $11576.25

so at 7 year account balance is

account balance = ( compounded amount + x ) × $(1+r)^{t}$ ....................2

$20000 = ( $11576.25 + x ) × $(1+0.5)^{4}$

solve it we get

x = $4877.75

so money deposited after end of 3rd year is $4877.75

7 0

3 years ago