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3 years ago

How does a mutual fund differ from an index fund?

Business

1 answer:

aivan3 [116]3 years ago

3 0

Answer:

The correct answer is letter "B": Mutual funds are actively managed by a professional while index funds are not.

Explanation:

Both mutual funds and index funds are pools of assets that allow investors to diversify their portfolios. The difference between them relies on the quality of management those funds provide. <em>Mutual funds are assessed by qualified professionals while index funds are not. That is the main reason why mutual funds charge higher fees than index funds.</em>

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Kluber, Inc. had net income of $911,000 based on variable costing. Beginning and ending inventories were 56,100 units and 54,200

Orlov [11]

Answer:

Net operating income (absorption)= $907,580

Explanation:

Giving the following information:

Fixed overhead per unit= $1.80

Net income= $911,000 (variable costing)

Beginning inventory= 56,100 units

Ending inventory= 54,200 units

<u>Under absorption costing, fixed manufacturing overhead is a product cost. </u>We need to incorporate into the cost of goods sold the fixed overhead from beginning inventory and deduct the fixed overhead allocated into ending inventory.

Net operating income= 911,000

Less:

Fixed overhead beginning inventory= (1.8*56,100)

Add:

Fixed overhead ending inventory= (1.8*54,200)

Net operating income (absorption)= $907,580

7 0

3 years ago

Cedric Company recently traded in an older model computer for a new model. The old model's book value was $140,000 (original cos

Semmy [17]

Answer:

1. $210,000

2.$230,000

3. $65,000

4. $370,000

5. $135,000 loss

Explanation:

1. Amount to debit for new equipment

Use the Fair Value of Asset given

2. Amount to debit accumulated depreciation

Use the accumulated depreciation of asset given up.

3. Amount to credit to cash

Use the Cash Paid up

4. Amount to credit for old equipment

Use the cost of asset given up

5. Gain or loss on sale

Gain or loss = Carrying Amount - Fair Value - Cash traded up

8 0

3 years ago

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at a fixed rate of 5.49% (15-year term) with monthly p

Aleks [24]

Answer:

Explanation:

If required, round your answers to two decimal places.

Pay off loan in years Additional Payment

10 Years $

11 Years $

12 Years $

Which option for prepayment if any, would you choose and why?

New monthly payment

PMT(3%/12, 15*12, 208555.87, 0, 0) = $1,440.25

Now, we need find the additional amount that they need to pay in order to repay their outstanding loan in 10,11 and 12 years. So, using the above formula, we get

10-year installment = PMT(3%/12, 10*12, 208555.87, 0, 0) = $2,013.83

11-year installment = PMT(3%/12, 11*12, 208555.87, 0, 0) = $1,856.93

12-year installment = PMT(3%/12, 12*12, 208555.87, 0, 0) = $1,726.40

Additional Monthly Payment

10-year: $2,013.83 - $1,440.25 = $573.58

11-year: $1,856.93 - $1,440.25 = $416.68

12-year: $1,726.40 - $1,440.25 = $286.15

7 0

3 years ago

wariber [46]

5 out of 7 that’s the answer

5 0

2 years ago

Describe the qualities of a manager for whom you would like to work someday.

MariettaO [177]

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3 years ago

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