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ruslelena [56]
3 years ago
13

A customer has invested a total of $10,000 in a nonqualified deferred annuity through a payroll deduction plan offered by the sc

hool system where she works. The annuity contract is currently valued at $16,000, and she plans to retire. On what amount will the customer be taxed if she chooses a lump-sum withdrawal?
Business
1 answer:
Blababa [14]3 years ago
3 0

Answer:

On $6000 amount customer be taxed

Explanation:

given data

total invest = $10000

current value = $16000

to find out

On what amount customer be taxed

solution

we know customer is invest here total $10000 and

current value is now $16000

so we can say that here payment non qualified deferred, annuity  after tax

so tax are paid of earning

so earning =  current value - invest

earning = 16000 - 10000

earning = $6000

so on $6000 amount customer be taxed

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An issuer decides to call in an outstanding bond issue under the terms detailed in the bond resolution because interest rates ha
tino4ka555 [31]

Answer:

An optional Call

Explanation:

Callable Bond

Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.

Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.

For bonds to be callable the terms must be clearly stated in the bond's offering.

Optional Call

In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.

Furthermore, a period of time must usually pass before the issuer can use the optional call.

6 0
3 years ago
A(n) ____ model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations perfor
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A(n) (transection)  model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations performed by the application.(transection
7 0
3 years ago
According to the chart, the initial monthly payment Demarco and Tanya should anticipate paying on principal and interest is ____
NeX [460]

Answer:

1. B. $811

2. C. $1,211

Explanation:

7 0
3 years ago
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In a rationing system, offering a landlord extra cash to guarantee the availability of an apartment is _____.
kicyunya [14]
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6 0
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Suppose you enter into a 9-month long forward contract on a non-dividend-paying stock when the stock price is S0 = $125 and the
Vladimir79 [104]

Answer:

<u>Future Price</u>

F0: 126.89

F3: 113.13

F4: 113.41

<u>Value of the contract:</u>

a) zero (by definition)

b) -13

c) -13

Explanation:

<em>forward price:</em>

F = S (1+r)^{n}

being S the spot rate

time 9 months and

rate 2% <u>continuous componding</u>

As the rate is continuous we calculate using the e number instead:

F = S e^{rn} +cost

F = 125 e^{0.02 \times 9/12}

F = 125 x 1.015113065

F = 126.8891331 = 126.89

<u>3th month into the contract:</u>

F = 112 e^{0.02 \times 6/12}

F = 113.1256187 = 113.13

<u>4th month</u>

F = 112 e^{0.025 \times 5/12}

F = 113.4087866 = 113.41

<u>value of the contract</u>

at third month:

Vt = St - F0

Vt = 112 - 125 = -13

at fourth month

Vt = 112 - 125 = -13

3 0
3 years ago
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