Answer:
The future value of annual savings is $1,370.30
Explanation:
The amount of annual savings =(Shaan's premium +Anita's premium)*10%
Shann's premium is $790
Anita's premium is $645
Annual savings =($790+$645)*10%
=$143.5
The future value formula is given below:
=-fv(rate,nper,pmt,-pv)
rate is 5% annual interest rate
nper is the 8 years that is the duration of investment
pmt is the annual savings of $143.5
pv is the total amount invested now which is zero
=-fv(5%,8,143.5,0)
fv=$ 1,370.30
Answer: D. Todd should include the $500 in 2015 gross income in accordance with the tax benefit rule.
Explanation:
It should be noted that due to the fact that Todd is a cash basis taxpayer, he'll be able to deduct the one-year prepayment for insurance in the year that it was paid, 2014.
In this case, he deducted $1,200, then his net cost will be ($1200 - $500) = $700. In this case, Todd should then include the $500 refund in gross income for 2015 under the tax benefit rule.
Answer:
Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.
The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.
Answer:
A. Raphael spend $800
B.$800
C.VALUE ADDED
Explanation:
A. The amount of $800 is the amount that would be included in the expenditure method reason been that Rapheal used the amount of $800 to pay for a new high-definition television (HDTV) as well as its installation
B. The total contribution to GDP which is measured by the expenditure method, is the amount of $800 calculated as :
The Stages of Production; The Sale Value - The Cost of Intermediate Goods = VALUE ADDED
The Home Station $50 - $0 = $50
Firedog $650 -$50 =$600
Better Buy $800- $650=$150
TOTAL $800
($50+$600+$150)
C.The contribution to GDP that you found using the expenditure approach corresponds to the sum of the VALUE ADDED at each stage of production
