Answer: By the end of the year I would be worst off
Explanation: This is because my savings would shrink ,although an interest is paid on the fixed account, the interest is not increasing at the rate at which the inflation is growing.
At any time savings don’t increase at the same rate as inflation, the owner of the fixed savings account will effectively lose money.
This is because with an increase in inflation comes a reduction in the buying power of an individual.
Answer:
In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes
Explanation:
Patricia is said to made a gift to Matt her husband in 2010 which is (50% ×$400,000) $200,000 which means marital deduction of an equal amount will be allowed for the gift tax purposes .
Matt’s gross estate also includes $1 million which is (50% ×$2 million) and will as well be offset by a marital deduction of an equal amount which is why the correct statement is:
In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The initial investment for each project is $50,000. Project A will generate cash inflows equal to $15,625 at the end of each of the next five years; Project B will generate only one cash inflow in the amount of $99,500 at the end of the fifth year (i.e., no cash flows are generated in the first four years). The required rate of return of Ace Inc. is 10 percent.
To determine which project to choose we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Project A:
Io= -50,000
Year 1to 5= 15,625
NPV= $9,231.04
Project B:
Io= 50,000
Year 5= 99,500
NPV= -50,000 + 99,500/1.10^5= 11,781.67
The highest NPV is the best option. Therefore, project B is the best.
The right answer for the question that is being asked and shown above is that: "B. Shirley's car will appreciate in value." Shirley qualifies for a $12,000 auto loan and chooses a 36-month loan term versus a 60-month loan term. The shorter term of the loan affect Shirley is that her<span> car will appreciate in value.</span>
Answer:
providing for national defense
Explanation:
yes
