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cestrela7 [59]
3 years ago
5

A municipal bondholder buys a 5 percent coupon annual payment muni bond at a price of $4,900. The bond has a $5,000 face value.

In one year she sells the bond for $4,975. The appropriate capital gains tax rate is 15 percent and her ordinary income tax rate is 28 percent.
A. What is her after-tax rate of return?
Business
1 answer:
Levart [38]3 years ago
3 0

Answer:

the after tax return on the investment is 6.40%

Explanation:

5% interest on the face value: 5,000 x 5% = 250 this interest are tax exempt.

capital gain:

4,975 - 4,900 = 75

75 x 15% = 11.25

net return: 75 - 11.25 = 63.75

total return: 250 + 63.75 = 313.75

investment 4,900

313.75 / 4900 = 0,064030 = 6.40%

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Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax
IceJOKER [234]

Just by looking at the answer you can take out D because C already offers no tax and 5% off, do C is better than D, so we only have to do t math for A, B, and CA is 800 plus tax, with $75 back800×1.05 (because it's 5% tax) -75 =$765B is 800×.90 (because 10% off means he's paying 90%)×.05=$756C is 800×.95 (because 5% off means he's paying 95%) =760A=765B=756C=760So B is the best deal

:)

6 0
3 years ago
Read 2 more answers
Sharon purchases two products, X and Y, with a given fixed budget. The marginal utility she receives from the last unit of X she
lorasvet [3.4K]

Answer:

The correct answer is option A.

Explanation:

Sharon in consuming two goods X and Y.  

The price of X is $2 and that of Y is $1.  

The marginal utility derived from consuming X is 60 utils and from consuming Y is 30 utils.  

For profit-maximization the ratio of marginal utility and price should be equal for both goods or the marginal utility of money spent on both goods should be equal.  

The ratio for good X

= \frac{MUx}{Px}

= \frac{60}{2}

= 30  

The ratio for good Y

= \frac{MUy}{Py}

= \frac{30}{1}

= 30  

Since the ratio is same for both the goods it implies that Sharon is maximizing her total utility.

3 0
4 years ago
In which stage of the product planning and development process would it be appropriate to give product samples to a panel of pot
snow_lady [41]

Answer:

c. Product development stage

Explanation:

Product development stage -

In the method of product planning and development , the product development is one of its stage .

Product development stage basically incircles the technical activities of the design and engineering .

In this stage the brand name , packaging and label is deceased , and in this very step the samples are given to certain potential customers .

Hence, from the given information of the question,

The correct option is c. Product development stage .

8 0
3 years ago
John worked 43 hours last week. His hourly rate is $9.00. He has the following deductions taken from his pay: Social Security ta
DochEvi [55]

Net pay is calculated by subtracting deductions from Net Pay.

In this case:

Gross Pay is 40 hours X $9/hr (regular pay) PLUS 3 hours X (13.50 -- 1.5 times the normal pay) for overtime

Once you have Gross Pay, you multiply that by the percentages given for the deductions and subtract that total from Gross Pay.

One note, in this case, federal taxes are not withheld from the amount given to 401(k). So to figure the taxes you would:

(Gross Pay - 401(K) contribution) X 10%

Gross Pay - deductions = net pay

4 0
4 years ago
An engineering student decides to invest $4,000 into a few aggressive stocks. Three years later the student sells the stocks for
const2013 [10]

Answer:

a 26%

Explanation:

The computation of the annual rate of return on this investment is as follows:

Let us assume n be no of years

Now

The Annual rate of return is

= (Ending value ÷  beginning value)^1 ÷ n - 1  

= ($8,000 ÷ $4000)^1 ÷ 3 - 1

= 0.2599

= 25.99 %

= 26%

hence, the annual rate of return is 26%

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
3 years ago
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