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podryga [215]
3 years ago
7

Antonio would like to replace his golf clubs with a custom measured set. A local sporting goods megastore is advertising custom

clubs for ​$690​, including a new bag.​ In-store financing is available at 5.23 percent or he can choose not to renew his ​$600 certificate of deposit​ (CD), which just matured
Business
1 answer:
Anastasy [175]3 years ago
8 0

Answer:

The below statements in quote are missing from the question.

“The advertised CD renewal rate is 6.13 percent. Antonio knows the in-store financing costs would not affect his taxes but he knows he’ll pay taxes (25% federal and 5.75% state) on the CD interest earnings. Should he cash the CD or use in-store financing? Why?”

Antonio  should cash in the CD to pay for the golf clubs rather  than opt for in-store financing arrangement,because after tax rate of CD is 4.25%  which less than the cost of in-store financing at 5.23%

Explanation:

The interest on CD before tax deductions is 6.13%

Total tax percentage due Federal and State governments  = 25% + 5.75% = 30.75%

After tax rate of CD = 6.13%(1 - .3075) = 4.25%

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mojhsa [17]
The correct answer would be Incentive.
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3 years ago
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The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>
  • The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
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<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

learn more about reserve ratio here

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4 0
2 years ago
A large increase in the supply of hd-tv sets occurs simultaneously with a smaller decrease in its demand. as a result the equili
zhenek [66]
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7 0
3 years ago
1.The percentage of the labor force that belongs to a union is known as the
Helen [10]
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4 0
3 years ago
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Tems11 [23]

Answer: Focused differentiation strategy

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7 0
3 years ago
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