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balandron [24]
3 years ago
5

You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1

year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?
Business
1 answer:
Nookie1986 [14]3 years ago
4 0

Answer:

FV= $44,269.11

Explanation:

<u>First, we need to calculate the future value of the lump-sum deposit of $20,000:</u>

<u></u>

FV= PV*(1 + i)^n

FV= 20,000.01*(1.05^11)

FV= $34,206.8

<u>Now, the future value of the $800 annual deposit:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {800*[(1.05^10) - 1]} / 0.05

FV= $10,062.31

<u>Finally, the total future value:</u>

FV= $44,269.11

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Answer:

d. a., b., and c.

Explanation:

Reduction in pay (a) Marginal tax (b) Reduction in tax (c = a x b)

A. $5000                            0.28                              $1,400

B. $4000                             0.15                                  $600

C. $6000                              0.35                                $2100

Reduction in After-tax Income (d = a - c)

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C. $3,900

this means that all the above a, b, and c options are correct because in all the three cases, the reduction in after-tax pay of the employee will be less than $4000 value of the nontaxable insurance premium to be paid by the employer which would ultimately benefit the employee.

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4 years ago
Most insurance companies sell you insurance because———?
Lady_Fox [76]

They generally take in more in premiums than they pay out.

5 0
4 years ago
Which of the following is NOT one of Modigliani and Miller's set of conditions referred to as perfect capital markets?
kolbaska11 [484]

Answer:

c

Explanation:

here are their assumptions

  1. All expectations on expected cash flows are homogenous
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  3. investors can borrow and lend at the risk free rate
  4. there are no agency cost
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4 0
3 years ago
Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated interna
Juli2301 [7.4K]

Answer:

Common market.

Explanation:

In this scenario, Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a common market.

A tariff can be defined as a form of taxation employed by a country and applies to imported goods or services from another country.

A common market refers to a formal organization of countries who have collectively agree to trade freely with one another with reduced or eliminated internal tariffs but imposes a common external tariff on trade with other countries. It was founded in 1958 and was made up of countries like Luxembourg, France, Belgium, Netherlands, West Germany and Italy.

<em>The main purpose and advantage of the common market is that, it avails member countries the opportunity to move goods, people, services and capital freely. </em>

7 0
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VashaNatasha [74]

Answer:

Definitely

Explanation:

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4 0
3 years ago
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