January 2001, Bianca invested $5,000 for three years at 4.20%; in January 2010, she invested $5,000 for two years at 3.81%; and, in January 2011, she invested $5,000 for one year at 3.55%.  Bianca's savings account in each year paid 2.8%, 1.59%, and 1.13% respectively.  In January, 2014, if Bianca reinvests her initial capital of $15,000., plus the interest it has earned for another two-year term, her bank will likely offer to pay a higher rate of

Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded…

A: The investment amount is a representation of the present value. It is the sum that is originally…

Q: Elizabeth has $31,209.00 in an investment account. Her goal is to have the account grow to…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: Fernando invested money in a 3-yr CD (certificate of deposit) that returned the equivalent of 6.5%…

A: A Certificate of Deposit (CD) is a type of savings account offered by banks and other financial…

Q: Lisa invested $5000 in a fund for 5 years and was paid simple interest. The total interest that she…

A: P = $5000 T = 5 SI = $1000 Where, P = Principal T = Time (No. of years) SI = Simple Interest

Q: marie chi inherited 425,000 from her grandmother and decided to invest the funds at 8% per year.how…

A: Investment amount (PV) = 425,000 Interest rate (r) = 8% Period (n) = 20 Years

Q: dward made his investment, Sarah also inv ear compounded annually. One year after t O They both will…

A: Simple interest : Compound interest is the interest calculated on the principal and the interest…

Q: Fiona invested $2000 at 9% compounded continuously. At the same time, Maria invested $2300 at 9%…

A: Compounding continuously is highest form of compounding and is exponential increase in value of…

Q: Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at…

A: Here, Details of First Investment are as follows: Investment Amount is $1,200 Investment made 4…

Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…

A: Compound interest= p*(1+r%/n)^tn A.)  Around $358903 stacked up at the end of 16th year.

Q: Maria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Jessica invests $4500 today and another $1,000 a year from now until 5 years. She also increases her…

A: Investment in year 0 = 4500 for 10 years Investment in year 1 = 1000 for 9 years Investment in year…

Q: Michelle Payne deposited $16,000 in a savings account paying 6.25% simple interest. How long (in…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Your sister just deposited $12,000 into an investment account. She believes that she will earn an…

A: Present value : Present value is a financial concept used to determine the current value of future…

Q: Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she…

A: Investment (P) = $4000 Period (T) = 2 Years Interest amount (I) = $400

Q: Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,868 at the end of each of…

A: In the given question, the amount to be invested today is the present value of a series of…

Q: Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Katie invested $191 for 16 months in a bank and received a maturity amount of $209.50. If she had…

A: Question 1:Interest earned = Maturity amount - Invested amountInterest earned = $209.50 - $191 =…

Q: Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in…

A: Formula: FV=PV×1+rt

Q: Amy Jolly deposited $2 000 in a savings account.  The annual rate is 10 per cent  compounded…

A: PV is the amount invested today.

Q: Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded…

A: Present value of annuity payments of $3500 for 10 years at 4% is calculated as below:

Q: Michelle payne deposited $20,000 in a savings account paying 6.25% simple interest. How long (in…

A: Future value = Prinicipal amount + Interest amount

Q: After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings…

A: Amount in savings account after 15 years = Investment amount + Interest  Simple Interest =…

Q: a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down…

A: Amount earned in royalties is $15,000 Amount set aside is 20% Amount invested is 15000×1-20%=…

Q: A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down…

A: The interest earned from all the categories of investment that a single investor has made is known…

Q: nifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to…

A: In this we need to calculate the present value of future needs.

Q: Stacey deposits $ 4500 at the end of each year for 30 years into an investment fund which pays out…

A: Reinvestment is the practice of using dividends, interest, or any other form of the income…

Q: onica invested the profit of his business in an investment fund that was earning 2.75% compounded…

A: Basis concept of time value of money has been applied, where amortisation schedule are prepared on…

Q: Tyler invested the profit of her business in an investment fund that was earning 3.75% compounded…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.