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vichka [17]
3 years ago
6

You have decided to invest $15,000 in a money market fund that pays you interest at the annual rate of 6% and compounds interest

s monthly. Your plan is to take out your money in a year and pay taxes on the interest earned. If the corresponding tax rate is 20%, how much money in total will you expect to receive in a year after paying taxes.
Business
1 answer:
BaLLatris [955]3 years ago
6 0

Answer:

$15,869.66

Explanation:

The formula for determining the future value of the amount invested is :

FV = PV x (1 + r / m)^mn

FV = Future value  

PV = Present value  

R = interest rate  

N = number of years

m = number of compounding

$15,000 x (1+ 0.06/12)^12 = $15,925.17

Interest earned = future value - present value

$15,925.17 - $15,000 = $925.17

Tax paid on interest earned = 0.06 x  $925.17 = $55.51

Interest after taxes = $925.17 - $55.51 = $869.66

Total amount expected = $15,000 + $869.66 = $15,869.66

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Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, w
just olya [345]

Answer:

corporations can obtain financing at lower rates

Explanation:

Convertible debts are a type of long term capital financing that has the option of converting the debt into stock or equity.  Corporations issue convertible debts to balance equity and liabilities.

A convertible debt will usually have a lower interest because the holder of the debt has the option of converting it to stock. A conversion occurs after a certain period. Investors willingly opt for convertible debts as the conversion aspect makes them less risky. Companies will opt for them because they are less expensive in interest payments,  hence a cheaper form of obtaining capital.

4 0
3 years ago
Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period we
Aleks [24]

Answer:

$180,000.

Explanation:

The Guaranteed direct labor cost to be recognized by the company is the cost of labour incurred directly in the course of production.

From the cost group given, the cost of plant supervisor, corporate executives, and security guards are all indirect cost.

The only direct cost for this company is the assembly-line workers cost at $180,000.

6 0
3 years ago
Label each of the following statements as an example of positive or normative analysis.
STALIN [3.7K]

Answer and explanation:

The difference between constructive and normative economic statements is considerable. Economists use both types of statements when addressing economic issues with varying degrees of objectivity. Positive statements state facts, which show no signs of endorsement or disapproval. Normative economics includes assumptions related to subjectivity and meaning.

1)<em> The sugar quota in the United States costs consumers $6.08 billion a year.  </em><u><em>(Positive statement)</em></u>

<em />

2)<em> Higher tariffs on imported automobiles would decrease the demand for foreign-made cars.  (</em><u><em>Normative statement)</em></u>

<em />

3)<em> International trade should be limited because it can cause some workers to lose their jobs.  (</em><u><em>Normative statement)</em></u>

<em />

4)<em> International trade makes some people better off and some people worse off.  </em><u><em>(Positive statement)</em></u>

<em />

5)<em> The U.S. should impose import quotas in the market for consumer electronics to help domestic workers.  </em><u><em>(Normative statement)</em></u>

<em />

6)<em> The sugar quota in the U.S. is good public policy and should be made stronger. (</em><u><em>Normative statement)</em></u>

4 0
3 years ago
A company is considering a project which requires $2 million capital investment. The project can bring in an annual revenue of $
Natalija [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

A company is considering a project which requires a $2 million capital investment.

The project can bring in annual revenue of $170k for the next 25 years.

The annual operation cost is $10k.

Starting from year 20, the equipment will need major maintenance and this cost starts at $5k and increases by 5k each year until the end of the project lifetime (25 years). The equipment has a salvage value of $100k at the end of the project.

The interest rate is 6%

                   n

<h3>NFV= Io - ∑[Ct*(1+i)^n] </h3>

                   t-1

Io= initial investment

Ct= cashflow of the period

i= interest rate

n= number of period until the end

NFV= -2,010,000 + [170000* (1.06^25)] + [170000*(1.06^24)] + .... +

NFV= $2,067,453.755

4 0
3 years ago
Observational Exercise Leadership Traits Purpose 1. To gain an understanding of the role of traits in the leadership process 2.
leonid [27]

Answer:

George Washington: 1. Wisdom 2. Judgment and prudence 3. Determination

Winston Churchill:  1. Vision 2. Influence 3. Encouragement

Mother Teresa:  1. Selfless  2. Relentlessly focused 3. Caring

Bill Gates:    1. Passionate 2. Serving humanity 3. Focus

Oprah Winfrey:   1. Emotional intelligence 2. Humanist 3. Inspirational

Explanation:

<u>leaders of my life </u>

<u>Mother: </u>

My mother was a very first leader of my life. She is the captain of the ship (our house). She dealt with so many problems and issue on daily basis with so much courage and patience. She always has a smile on her face which is the strength of her and ours too. She is courageous, strong, patient lady I have ever seen.

<u>Teacher: </u>

My high school teacher was inspiration to me. he was so encouraging. He always treated us all the same without any discrimination. He always discouraged the bullies, racism, and any kind of hatred. He was always available for us to solve our problem and listen to us. he always taught us to never give up no matter what happened in life.

He was humanist, inspirational, problem solver.

<u></u>

7 0
3 years ago
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