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lisabon 2012 [21]
1 year ago
9

Lorraine invested $50,000 in a nonqualified deferred annuity at the age of 50. Three years later, the contract has grown to $64,

000, and Lorraine takes a $5,000 withdrawal. The contract is still in its accumulation stage. Which of the following statements is true? a. The withdrawal is fully taxable. b. The withdrawal is not taxable. c. $4,000 of the withdrawal is taxable; $1,000 is tax free. d. $1,000 of the withdrawal is taxable; $4,000 is tax free.
Business
1 answer:
stepan [7]1 year ago
3 0

Answer:

a. The withdrawal is fully taxable.

Explanation:

When withdrawing from annuity before the age of 59.5, the amount is taxable as income. There will also be a 10% tax penalty, and there may be a surrender charge by the insurance company.

Lorraine was 53 when the withdrawal was made, so she will be affected by these charges.

It is advisable to not make withdrawals till after the accumulation phase and above 59.5 years old. Then these penalties will not apply, onlybthe income tax on the withdrawal.

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Ryan is thinking about pawning his watch to get some quick money to pay his bills. if he gets the money from the pawnbroker, wha
gtnhenbr [62]
The correct answer is a single payment loan.
This means that he will pawn his watch to a pawnbroker, who will pay him the entire sum immediately, without having to use monthly installments or something like that. A single payment loan refers to the payment of the entire principal sum at that particular moment when the loan is taken.
5 0
1 year ago
Read 2 more answers
Your company plans to borrow $12 million for 12 months, and your banker gives you a stated rate of 21 percent interest. Calculat
mina [271]

Answer:

The correct answer is 23.86%.

Explanation:

According to the scenario, the given data are as follows:

Loan amount = $12,000,000

Time period = 12 months

Rate of interest = 21%

compensating balance = 12%

So we can calculate the effective rate of interest by using following method:

Effective rate of interest = (Loan amount × Interest Rate ) ÷ Loan amount × (1 – compensating balance )

By putting the value, we get:

= ( $12,000,000 × 0.21) ÷ ($12,000,000 × (1-0.12)

= 0.2386 or 23.86%

8 0
1 year ago
What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these
Evgesh-ka [11]

Answer: The answer is given below

Explanation:

• What are some of the key environmental forces that have changed the way projects are managed?

Some environmental forces which have

altered the way that projects are managed are the knowledge growth, product life cycle, technological changes, global competition, organization downsizing, and time to market.

• What has been the effect of these forces on the management of projects?

The effect of these forces on the management projects is that it resulted in more projects for every organization, it also resulted in changing structures of organization, accountability, the need for rapid completion of projects, the linking of projects to the strategies of the organization and the alliance with the external organizations.

• Why is the implementation of projects important to strategic planning and the project manager?

Strategic plans are typically implemented through projects. This could be through a new information system, a new product, or new plant for new product. It should be noted that the project manager is responsible for the timely completion of the project within the budget, and also within specifications in order for the customers to be satisfied. In cases whereby the project is not being linked to a organization's strategic plan, the resources that are being devoted to the project will result into wastage.

• What is meant by an integrative approach to project management? Why is this approach important in today?

An integrative approach to project management simply refers to one whereby there are interrelationships between all the parts. It should be noted that the approach is vital as an organization that utilizes it has a competitive edge and also provides an integrated system that is required for project implementation.

3 0
2 years ago
A computer store has purchased three computers of a certain type at $500 apiece. It will sell them for $1000 apiece. The manufac
Ugo [173]

Answer:

The expected profit will be of 700 dollars

Explanation:

The expected profit will be the multiplication of the outcomes by their probability:

We have 10% chance of selling <u>zero </u>thus:

1,000(0) + 200(3-0) - 1,500 = -900

We have 20% chance of selling <u>one </u>thus:

1,000(1) + 200(3-1) - 1,500 = -100

We have 30% chance of selling <u>two </u>thus:

1,000(2) + 200(3-2) - 1,500 = 700

We have 40% chance of selling <u>all </u>thus:

1,000(3) + 200(3-3) - 1,500 = 1,500

\left[\begin{array}{ccc}weight&outcome&w.profit\\0.1&-900&-90\\0.2&-100&-20\\0.3&700&210\\0.4&1,500&600\end{array}\right]

We add each weighted profit to get the expected result:

-90 - 20 + 210 + 600 = 700

5 0
2 years ago
The Window Store will have a value of $139,000 if the economy does well this coming year and a value of $121,000 if the economy
ycow [4]

Answer:

The value of this firm to shareholders is $70240

Explanation:

Using expected value approach, the value of the firm can be computed as :

(Optimistic value*its probability)+(pessimistic value*its probability)

optimistic value=$139000 and its probability is 68%=0.68

Pessimistic value=$121000 and its probability is 1-0.68=0.32

Expected value=($139000*0.68)+($121000*0.32)

                         =$133240

However, the value to shareholders is the expected value of the firm less debt of $63000

Equity value=$133240-$63000

                      =$70240

8 0
2 years ago
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