Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is an annuity and how does it work? How does a 401K plan work? Describe what a share of stock means to an investor.

  1. What is an annuity and how does it work?

  1. How does a 401K plan work?

  1. Describe what a share of stock means to an investor.

  1. What is a diversified Portfolio?

  1. What is a ROTH IRA and how does a person make contributions into it? Is it taxable and, if so, when can a person be taxed on it?

  1. What is a qualified dividend?

  1. What is a mutual fund and how does it work?
  2. An exercise machine with an original price of $850 is on sale for 20% off. What is the sale price?

  1. Nowregarding the exercise machine from #8, if CT sales tax is 6.35%, what would the tax be on the machine? Andif you add the tax to the sale price, what would you, the consumer, pay?

  1. If I paid $6000 in state income tax in 2015 and in then in 2017 I paid $6300, what was the percent increase?

  1. If my gross income in 2015 was $87,000 and then in 2017 my gross income was $65,000 what was the percent decrease?

  1. In order to start a small business you take out a simple interest loan for $6000 for 9 months at a rate of 8.25%.
    1. How much interest do you pay?
    2. What is the total amount you pay back at the end of 9 months?

  1. $7500 is put into a savings account that earns 3.25% annual interest. If the interest is compounded quarterly, how much money is in the account after 5 years?

Suppose I have an annual gross income of $60,000. I want to invest 8% each month and my employer will match 4%. Liberty Mutual offers 3% annual interest compounded monthly.

  1. How much money will be invested each month?

  1. Now, in January the first investment is made with the amount you found in #14. How much is in the account at the end of 1 year based on this initial investment?

  1. In February, a second investment is made of the same amount you found in #14. How much money is in the account at the end of 11 months based on this investment?

  1. In March, a third investment is made of the same amount you found in #14. How much money is in the account at the end of 10 months based on this investment?

  1. Nowwhen the end of the year comes, how much is in my account SOLELY based on these 3 monthly investments?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Financial Accounting

Authors: Morusu Sivasankar

1st Edition

6200624909, 978-6200624901

More Books

Students also viewed these Accounting questions

Question

=+ Were the data summarized in an appropriate way?

Answered: 1 week ago