Answer:
c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due
Explanation:
Considering the following statements:
- the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
- The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
- In case of perpetuity the times is not limited, hence would get the higher return.
C. Marginal Cost
Marginal cost is the <em>additional </em>cost to produce each unit of a good.
Answer:
$5528000
Explanation:
Solution
Given that:
Now,
The 2018 estate tax exemption 11180000$ above that the estate inherited are taxed at 40%.
So,
25000000-11180000 = taxable estate 13820000$
The estate tax due= 13820000*40%
= 5528000$
Note: This is reference from Exhibit 25-1 and Exhibit 25-2.
You will need $228,790 in 28 years to supplement your retirement funds. If you can earn 8% interest, you must save $2,400 each year. ✅
Answer:
$164.29
Explanation:
The formula to compute the markup percentage is shown below:
Markup percentage = (Sale price - purchase price) ÷ (purchase price)
where,
Markup percentage is 40%
Sale price is $230
So, the purchase price is
0.40 = ($230 - purchase price) ÷ (purchase price)
0.40 × purchase price = $230 - purchase price
So, the purchase price is
= $230 ÷ 1.40
= $164.29
