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## Your employer pays 75% of your health insurance premium. If the annual premium is \$2530, and you are paid weekly, how much is deducted from each paycheck?

Your employer pays 75% of your health insurance premium. If the annual premium is \$2530, and you are paid weekly, how much is deducted from each paycheck?

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## You invest \$6000 into an account paying 3.75% annual interest compounded bimonthly(every 2 months), and you want to have \$10,000 saved for your first year of college. How long will it take for your investment to grow that large? Round your answer to the nearest whole number.

The formula is
A=p (1+r/k)^kt

A future value 10000
P present value 6000
R interest rate 0.0375
K compounded every two months 6
T time?

We need to solve for t
T= [log (A/p)÷log (1+r/k)]÷k
T=(log(10,000÷6,000)÷log(1+0.0375÷6))÷6
T=13.7 years
T=14 years

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## A bank offers two interest account plans. Plan A gives you 6% interest compounded annually. Plan B gives you 13% annual simple interest. You plan to invest \$2,000 for the next 4 years. Which account earns you the most interest (in dollars) after 4 years? How much will you have earned? Plan A; \$524.95 Plan B; \$524.95 Plan A; \$1,040.00 Plan B; \$1,040.00

Plan A
The formula is
A=p (1+r)^t
A=2,000×(1+0.06)^(4)
A=2,524.95 ( future value )

Interest earned=A-p
Interest earned=2524.95-2000
Interest earned=524.95

Plan B
Use the simple interest formula
I=prt
I interest earned?
P principle 2000
R interest rate 0.13
T time 4years
I=2,000×0.13×4
I=1,040

Plan B; \$1,040

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## A bank offers a 4% annual interest rate for a savings account. Nathan puts \$3,800 into an account to save for college. How much will be in the account after a year?

A bank offers a 4% annual interest rate for a savings account. Nathan puts \$3,800 into an account to save for college. How much will be in the account after a year?

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## You invest \$2,000 in an account that has an annual interest rate of 3.2%, compounded annually. How much money will be in the account after 12 years? Round your answer to the nearest whole number.

P = 2000 is the amount invested
r = 0.032 is the decimal form of 3.2%, which is the interest rate
n = 1 indicates we compound 1 time a year (compound annually)
t = 12 is the number of years

Those four values are plugged into the formula below
A = P*(1+r/n)^(n*t)
A = 2000*(1+0.032/1)^(1*12)
A = 2918.6792
A = 2919

Rounded to the nearest whole dollar, you’ll have about \$2919 in the account

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## Down under boomerang, inc., is considering a new three-year expansion project that requires an initial fixed asset investment of \$2.64 million. the fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. the project is estimated to generate \$2,060,000 in annual sales, with costs of \$755,000. the tax rate is 35 percent and the required return on the project is 13 percent. what is the project’s npv?

To answer this problem, 1st let us calculate
the total annual cash flow.

We define the given variables:

Annual Income = \$2,060,000

Annual Cost = \$755,000

Annual Profit = \$2,060,000 – \$755,000 = \$1,305,000

Annual Tax = \$1,305,000 * 0.35 = \$456,750

Depreciation = \$2.64 million / 3 = \$880,000

Savings from Depreciation = \$880,000 * 0.35 = \$308,000

Therefore,

Annual Cash Flow = Annual Profit + Savings from
Depreciation

Annual Cash Flow = \$1,305,000 + \$308,000

Annual Cash Flow = \$1,613,000

The present value of annuity is:

P = A [1 – (1 + i)^-n ] / i

P = \$1,613,000 [1 – (1 + 0.13)^(-3)] / 0.13

P =
\$3,808,539.14 = NPV

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## Inez Alexander has a car loan of \$425 per month at 5.5% annual interest rate. She would like to pay off the car one year early. About how much will her payoff be

Inez Alexander has a car loan of \$425 per month at 5.5% annual interest rate. She would like to pay off the car one year early. About how much will her payoff be

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## Ceasar opens a bank account and makes an initial deposit of \$800. The banker tells Ceasar that he is going to receive an annual rate of 10% on his investment. Find the bank balance assuming Tom leaves the account untouched for 8 years.

Ceasar opens a bank account and makes an initial deposit of \$800. The banker tells Ceasar that he is going to receive an annual rate of 10% on his investment. Find the bank balance assuming Tom leaves the account untouched for 8 years.

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## An employee earned \$45,200 during the year working for an employer when the maximum limit for social security was \$117,000. the fica tax rate for social security is 6.2% and the fica tax rate for medicare is 1.45%. the employee’s annual fica taxes amount is:

Employee                                 Mary      Zoe         Greg         Ann           Tom

Cumulative Pay                       \$6,800   \$10,500  \$8,400    \$66,000   \$4,700

Pay subject to FICA S.S.         \$421.60  \$651.00  \$520.80 \$4092.00 \$291.40
6.2%, (First \$118,000)

Pay subject to FICA Medicare \$98.60 \$152.25    \$121.80    \$957.00    \$68.15
1.45% of gross

Pay subject to FUTA Taxes      \$40.80  \$63.00     \$50.40    \$396.00  \$28.20
0.6%

Pay subject to SUTA Taxes   \$367.20  \$567.00  \$453.60  \$3564.00 \$253.80
5.4% (First \$7000)

Totals                                     \$928.20 \$1,433.25 \$1,146.60 \$9,009.00 \$641.55

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## Riverside bank offers to lend you \$50,000 at a nominal rate of 6.5%, compounded monthly. the loan (principal plus interest) must be repaid at the end of the year. midwest bank also offers to lend you the \$50,000, but it will charge an annual rate of 6.2%, with no interest due until the end of the year. how much higher or lower is the effective annual rate charged by midwest versus the rate charged by riverside

Riverside bank offers to lend you \$50,000 at a nominal rate of 6.5%, compounded monthly. the loan (principal plus interest) must be repaid at the end of the year. midwest bank also offers to lend you the \$50,000, but it will charge an annual rate of 6.2%, with no interest due until the end of the year. how much higher or lower is the effective annual rate charged by midwest versus the rate charged by riverside

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## Things did not go quite as planned. you invested \$20,000, part of it in a fund that paid 12% annual interest. however, the rest of the money suffered a 5% loss. if the total annual income from both investments was \$1890, how much was invested at each rate?

Initial investment on Jan 1, 2013 = (500 shares)*(\$24 per share) = \$12,000

Dividend collected at the end of 2013 = \$2.50*500 = \$1,250
Dividend collected at the end of 2014 = \$4*500 = \$2,000
Dividend collected at the end of 2015 = \$3*500 = \$1,500
Mony received from sellng the 500 shares at the end of 2015 = \$20*500 = \$10,000

Total returns at the end of 2015 = 1,250+2,000+1,500+10,000 = \$14,750
Net gains = 14750 – 12000 = \$2,750
Duration = 3 years
Realized total rate of return = 2750/12000 = 0.2292 = 22.9%

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## The formula below gives T the approximate time in years it takes a population to double if the annual growth rate is r percent

The formula below gives T the approximate time in years it takes a population to double if the annual growth rate is r percent

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## Which of the following statements best describes the relationship between federal and state income taxes? a. State income tax is based on your annual income while federal income tax is generally a specific percentage of state. b. Federal income tax is based on your annual income while state income tax is generally a specific percentage of federal. c. Federal income tax is based on your annual income while state income tax is determined by the number of children the taxpayer has d. There is no relationship between federal and state income taxes. They are calculated indepedently from one another.

Answer:  The correct option is (C). 10 = square root of the quantity of x minus 8 all squared plus y minus 9 all squared

Step-by-step explanation:  Given that the segment AB has point A located at (8, 9). The distance from A to B is 10 units.

We are to select the correct option that could be used to calculate the coordinates for point B.

Let, (x, y) be the co-ordinates of point B.

According to distance formula, the distance between two points (a, b) and (c, d) is given by

Therefore, the distance between the points A(8, 9) and B(x, y) is given by

Since, distance between A and B is 10 units, so

d = 10.

Therefore,

Thus, the correct statement is

10 = square root of the quantity of x minus 8 all squared plus y minus 9 all squared.

Option (C) is correct.

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## Marcus employer purchased a health insurance plan that costs \$795 per month and requires that marco pay \$105 toward the plan. What is the annual value of the employers contribution

Marcus employer purchased a health insurance plan that costs \$795 per month and requires that marco pay \$105 toward the plan. What is the annual value of the employers contribution

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## Find the present value that will grow to \$7000 if the annual interest rate is 3.5% compounded quarterly for 9 uears

So hmm check the picture below, that’s about the circle and the endpoints, but notice, the endpoints make up a segment, namely the diameter of the circle, well…. let’s see how long that is, because, the radius is half the diameter

now.. hmmm notice, the midpoint of the diameter, is the center of the circle, let’s check that one out

now.. that we know what the center is, and what the radius is, well

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## What is the total amount in an account that has had \$35 per month added into it for 30 years and grew with an annual interest rate of 7%?

You need to determine the number of ways in which 30 competitors from 50 can qualify. First, you have to realize that the order is irrelevant, that is: it is the same competitor_1, competitor _2, competitor _3 than competitor_3, competitor_2, competitor_1, or any combination of those three competitors.

So, the number of ways is which 30 competitors from 50 can qualify is given by the formula of combinations, which is:

C (m,n) = m! / (n! * (m -n)! )

=> C (50,30) = 50! / (30! (50 – 30)! ) = (50!) / [30! (50 – 30)!] = 50! / [30! 20!] =

= 47,129,212,243,960 different ways the qualifiying round of 30 competitors can be selected from the 50 competitors.

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## Calculate the simple interest you would receive in one year on a savings account that earns 5% annual interest. your beginning balance is \$255.19.

The Contribution Margin per unit (CM) can be calculated
from the difference of Selling Price per unit (SP) and Total Expenses per unit
(TE).

First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = \$1,043,400 / 22,200 units sold

SP = \$47

Second, calculate all expenses:

Direct materials per unit = \$234,948 / 27,970 units
manufactured = \$8.4

Direct labor per unit = \$131,459 / 27,970 units
manufactured = \$4.7

Variable manufacturing overhead per unit = \$240,542 / 27,970
units manufactured = \$8.6

Variable selling expenses per unit = \$113,220 / 22,200
units sold = \$5.1

TE = \$26.8

Therefore the CM is:

CM = SP – TE

CM = \$47 – \$26.8

CM = \$20.2 per unit

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## Suppose winston's annual salary as an accountant is \$60,000, and his financial assets generate \$4,000 per year in interest. one day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. to run the business, he outlays \$8,000 in cash to cover all the costs involved with running the business, and earns revenues of \$150,000. what are winston's economic profits

Suppose winston’s annual salary as an accountant is \$60,000, and his financial assets generate \$4,000 per year in interest. one day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. to run the business, he outlays \$8,000 in cash to cover all the costs involved with running the business, and earns revenues of \$150,000. what are winston’s economic profits

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## Mike is considering investing \$18,500 in an investment that will have a maturity value of \$32,500 in 8 years. if the interest is compounded monthly, what is the annual rate of return earned on the investment?

The Contribution Margin per unit (CM) can be calculated
from the difference of Selling Price per unit (SP) and Total Expenses per unit
(TE).

First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = \$1,043,400 / 22,200 units sold

SP = \$47

Second, calculate all expenses:

Direct materials per unit = \$234,948 / 27,970 units
manufactured = \$8.4

Direct labor per unit = \$131,459 / 27,970 units
manufactured = \$4.7

Variable manufacturing overhead per unit = \$240,542 / 27,970
units manufactured = \$8.6

Variable selling expenses per unit = \$113,220 / 22,200
units sold = \$5.1

TE = \$26.8

Therefore the CM is:

CM = SP – TE

CM = \$47 – \$26.8

CM = \$20.2 per unit

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## Jala put \$600 in an interest bearing account with a annual compound interest rate of 5%. Jala determined that after seven years, she will have a total balance of \$844.26. Using the rule of 72, mc010-1.jpg how many more years will it be before Jala’s \$600 doubles in value? Round to the nearest tenth.

You need to determine the number of ways in which 30 competitors from 50 can qualify. First, you have to realize that the order is irrelevant, that is: it is the same competitor_1, competitor _2, competitor _3 than competitor_3, competitor_2, competitor_1, or any combination of those three competitors.

So, the number of ways is which 30 competitors from 50 can qualify is given by the formula of combinations, which is:

C (m,n) = m! / (n! * (m -n)! )

=> C (50,30) = 50! / (30! (50 – 30)! ) = (50!) / [30! (50 – 30)!] = 50! / [30! 20!] =

= 47,129,212,243,960 different ways the qualifiying round of 30 competitors can be selected from the 50 competitors.

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## Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is \$50,760. Assuming that he will recieve 42% of his average annual salary, what will be his annual Social Secrity benefit?

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is \$50,760. Assuming that he will recieve 42% of his average annual salary, what will be his annual Social Secrity benefit?

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## The majority of the central part of africa (majority of the congo basin) has between _____ inches of annual precipitation.

The correct answer is – Spanish.

The Caribbean, Central American, and South American regions, are in general Spanish speaking regions. This is due to the Spanish influence for few centuries, when the Spanish had colonized these areas, and made their language as official language.

Also, the mixing of the people, and the assimilation policies, contributed that the Spanish language becomes the first language in most of the countries in this part of the world.

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## Cromwell is acquiring some land for \$1200000 in exchange for semi annual payments of \$75000 at an interest rate of 6.35%. how many years will it take cromwell to pay for this purchase

The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 1200000
PMT semiannual payment 75000
R interest rate 0.0635
K compounded semiannual 2
N time?
1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]
Solve for n
1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n))

0.508=(1-(1+0.0635/2)^(-2n))

0.508−1=-(1+0.0635/2)^(-2n)

−0.492=-(1+0.0635/2)^(-2n)

0.492=(1+0.0635/2)^(-2n)

-2n=log(0.492)÷log(1+0.0635÷2)

N=-[log(0.492)÷log(1+0.0635÷2)]÷2

N=11.35 years

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## Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. what is the forward rate, f1,2 assuming annual compounding?

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. recall that in this course interest rates are always quoted on an annual basis unless otherwise specified. what is the forward rate, f1,2 assuming annual compounding?

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