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nikitadnepr [17]
3 years ago
8

You have your choice of two investment accounts. Investment A is a five-year annuity that features end-of-month $2,500 payments

and has an interest rate of 11.5 percent compounded monthly. Investment B is a 10.5 percent continuously compounded lump sum investment, also good for five years. How much would you need to invest in B today for it to be worth as much as investment A five years from now
Business
1 answer:
oee [108]3 years ago
5 0

Answer:

$119,176.06

Explanation:

Calculation for How much would you need to invest in B today

First step is to calculate the Future value of annuity (FVA)

FVA =$2,500 * ({[1 + (.115 / 12)](5 × 12) - 1} / (.115 / 12))

FVA = $201,462.23

Since we have known the FVA Second Step will be to calculate the Present value (PV)

PV = $201,462.23 × e-1 × .105 × 5

PV= $119,176.06

Therefore the amount that you would need to invest in B today will be $119,176.06

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In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married fil
serg [7]

Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

<h3>What is tax liability?</h3>

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

<h3>Data and Calculations:</h3>

Earned income = $14,000

Qualified Dividend income = $5,000

Adjusted taxable income = $6,450 ($19,000 - $12,550)

Tax liability = $645 ($6,450 x 10%)

Thus, Carson's tax liability for 2021 is $645.

Learn more about tax liabilities at brainly.com/question/7409145

4 0
2 years ago
Arter is a method of exchange whereby goods or services are traded directly for other goods or services without the use of money
expeople1 [14]

Answer: correct evaluation and medium of exchange etc.

 

Explanation: The main problem with the barter system is that it would be hard to value the goods or services that the parties are exchanging. In the given case, it would be hard to value how many car washes would be equal to a paint of house.

Also finding someone who is willing to paint house in exchange of car washes is another difficult task.

5 0
3 years ago
Ramos Inc. has total assets of $1,000 and total liabilities of $450 on December 31, 20Y6. Assume that assets increased by $130 a
sukhopar [10]

Answer:

The owner's equity be as of December 31, 20Y7 is $705

Explanation:

In this question, we apply the accounting equation which is given below

Total assets = Total liabilities + shareholder's equity

The question has said that the liabilities are decreased and the assets are increased.

So, the new asset is = total assets + increased amount

                                 = $1,000 + $130

                                 = $1,130

And, So, the new liability is = total liabilities - decreased amount

                                 = $450 - $25

                                 = $425

So, the shareholder equity would be equal to

= $1,130 - $425

= $705

Hence, the owner's equity be as of December 31, 20Y7 is $705

5 0
3 years ago
The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historic
Dmitriy789 [7]

Answer:

d) 420

Explanation:

In three-year weighted moving average with weights of 0.5, 0.3, and 0.2, the forecast can be calculated using the following formula

Forecast(This year) = 0.5*Demand(last year) + 0.3*Demand(2 years ago) + 0.2*Demand(3 years ago)

Forecast(This year) = 0.5*300 + 0.3*500 + 0.2*600

Forecast(This year) = 150 + 150 + 120

Forecast(This year) = 420

6 0
3 years ago
If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to
oee [108]

Answer:

C. Subsidized

Explanation:

According to the economic theory, subsidies could be used to counter market weaknesses and externalities so that greater economic performance is achieved. Subsidy refers to the release of funds from the government to an individual, business, or entity. This results in a decrease in the value of the subsidized product. This support could be either in the form of cash or kind and is usually given to support a social or economic policy. The purpose of the subsidy is to promote the interests of society. It is part of the government 's non-planned expenditure.

7 0
2 years ago
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