Answer: $7,716.76
Explanation:
Ian's friend will have to pay a specific annual payment per year so this is an annuity.
The $25,000 is the present value of the payments.
25,000 = Annuity * Present Value interest factor of Annuity, 9%, 4 years
25,000 = Annuity * 3.2397
Annuity = 25,000/3.2397
= $7,716.76
Answer: 12.29%
Explanation:
Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.
Assume that return is x;
x * ( 1 - 17%) = 10.2%
0.83x = 10.2%
x = 10.2%/0.83
x = 12.29%
Answer:
One motive that Dominic might have was that he has always wanted to become an entrepreneur and his grandmother wants him to take over the shop for her since his cake-making skills had very much improved since he started. And another motive Dominic had was that there was not a lot of jobs open for him in the area, so he was glad to help.
Explanation:
