Business, 05.11.2019 02:31 texas101st78

You would like to save $5,000 today, in preparation for retirement 30 years from now. you have to choose between putting it into one of the two plans describe below: i) pay no taxes toady, and put the money into an interest-bearing account. when you withdraw the money on retirement, you pay a 20% tax rate on the money taken from the account. (this is how an individual retirement account, or, ira works) ii) pay a tax rate of 15% of the investment amount today, when you put it into the account, but do not pay any tax when you withdraw funds at retirement. the interest rate you get is the same in both plans. a) what is the expected present discounted value of each of these plans if the interest rate is 1%? what if the interest rate is 10%? (note: you can do this with a calculator, but it’s going to be easier with a spreadsheet.) b) which plan would you choose in each case?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:30

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized byanswers: process innovations.product manufacturing.product innovation.process manufacturing.

Answers: 1

Answer

Business, 22.06.2019 05:10

Responsible for setting the goals and planning for the future as well as leading and controlling the work of others. out the decisions of top management. often responsible for various departments such as the production, marketing, and accounting departments. process or function of planning organizing leading and controlling. the resources arranged in an orderly and functional way to accomplish goals and objectives. the company on track and making sure goals are met. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. act or process of creating goals and objectives as well as the strategies to meet them. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. how the firm is structured and who is in charge of whom. direction and vision

Answers: 3

Answer

Business, 22.06.2019 10:00

The solution set for -18 < 5x-3 iso-3х3< xо-3хo3 > x

Answers: 3

Answer

Business, 22.06.2019 19:40

The common stock of ncp paid $1.35 in dividends last year. dividends are expected to grow at an annual rate of 5.30 percent for an indefinite number of years. a. if ncp's current market price is $22.57 per share, what is the stock's expected rate of return? b. if your required rate of return is 7.3 percent, what is the value of the stock for you? c. should you make the investment? a. if ncp's current market price is $22.57 per share, the stock's expected rate of return is

Answers: 3

Answer

You know the right answer?

You would like to save $5,000 today, in preparation for retirement 30 years from now. you have to ch...

Questions