All of the following are advantages of this type of retirement plan EXCEPT C) The 10 percent penalty tax does not apply to distributions prior to age 59.5.
<h3>Which of the following is a major benefit of an employer-sponsored retirement plan?</h3>
The plans lower your taxable income, which means that you will pay less in taxes for the year. They also grow deferred, which means that any profits growth is tax-free until it is withdrawn, and you can receive "free money" through employer matching contributions.
A profit sharing or stock bonus plan is a type of defined contribution plan where the employer or the plan specifies how much money will be donated each year (out of profits or otherwise).
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Answer:
4.5 years
Explanation:
The computation of the number of years is shown below:-
Future value = Present value × (1 + interest rate)^n
umber of years
$
66,610.25 = $40,000 × (1 + 0.12)^n
$1.665256 = (1.12)^n
LN 1.665256 = n LN 1.12
0.509979 = n × 0.113329
n = 4.499
or
= 4.5 years
Therefore for computing the number of years we simply applied the above formula.
Answer:
The answer is 0.3%
Explanation:
nominal risk free rate for 10 years = 3.7 + 1.5 = 5.2
nominal risk free rate for 30 years = 4.0 + 1.5 = 5.5
Therefore maturity risk premium is 5.5 - 5.2 = 0.3%
Answer: $29; $2.50
Explanation:
The maximum per share loss to the writer of an uncovered put; that is price of put is zero on expiration
Strike price = $31, at $2 per share
Therefore, maximum per share loss ;
($31 - 0) - $2 =
Maximum per share gain to the writer of an uncovered put occurs when the stock price falls below $31 on expiration.
Maximum per share gain equals $2.50
