Answer: c) High-tax
Explanation:
Municipal bonds are quite attractive because they offer returns that are free of Federal taxes which means that the return quoted on them is the after-tax return already.
For this reason their returns are usually less than corporate bond returns. Investors in high tax brackets will therefore be attracted to municipal bonds as it gives them a chance to get tax savings on amounts they would have paid as taxes.
Amount invested today=P =$1,000
Annual interest rate=r =5%
Concept:
First, find the effective quarterly rate which is r/m, m=no. of quarters in a year which is equal to four.
effective quarterly rate= r/m =5/4 =1.25%
now, no. of period is equal to n=4 (reason: 4 quarter in a year for which effective rate of 1.25% used)
Now,
Investment in one year = F= 1,000(F/P, 1.25%, 4)
= 1,000(1.0509)
= $1050.9<span />
Answer:
4
2
Contente
Euphoria
Explanation:
Euphoria's opportunity cost of producing 1 bushel of corn is
= 4 pair of jeans, and Contente's opportunity cost of producing 1 bushel of corn is
= 2 pair of jeans. Therefore, Contente has a comparative advantage in the production of corn, and Euphoria has a comparative advantage in the production of jeans.
Answer:
the fixed factory overhead volume variance is $1,180 unfavorable
Explanation:
The computation of the fixed factory overhead volume variance is shown below
= (Actual activity - normal activity)× fixed overhead cost per unit
= (3,400 × 1.5 - 5,500) × $2.95
= (5,100 - 5,500) × 2.95
= 400 × 2.95
= $1,180 unfavorable
Hence, the fixed factory overhead volume variance is $1,180 unfavorable
Simply we applied the above formula so that the correct amount could come
Capital is referred to Money on this business and economics world, Princess