PLS HELP ASAP ON BOTH Justin and Yvonne both open a Registered Education Savings Plan (RESP) for their daughter Grace. They plan to regularly contribute$1,000 per year until Grace reaches the age of 17.Which of the following statements relating to RESP is CORRECT?O Justin and Yvonne may contribute a combined lifetime maximum of $50,000 for Grace.O RESPs are attractive to Justin and Yvonne because they are tax-free investment plans.O There is an annual contribution limit of $2,500 that Justin and Yvonne can contribute to an RESPContributions made by Justin and Yvonne are eligible for a tax deduction in the year they are contributed. cordingWhiteboardFlag for IYou are meeting a new client, Steven, and you are trying to determine his level of understanding of different investments. Whichquestion would give you the most information regarding your client's familiarity with investing?O Do you want to minimize taxes from your investments?O What rate of return do you expect from investing?Do you understand the relationship between risk and return?○ Do you have the resources to invest for the long-term?

Qustion 2:The best question to determine Steven's level of understanding of different investments…

Answered: Justin and Yvonne both open a…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1PA

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Jack just discovered that he holds the winning ticket for the $87 million megalottery in Missouri. Now he needs to decide which alternative to choose: (1) a$44 million lump-sum payment today or (2) a payment of $2.9 million per yearfor 30 years. The first payment will be made today. If Jack’s opportunity cost is5 percent, which alternative should he choose? Please show calculation using excel
You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement _____________and will need to set aside ___________per year (at the end of each year.
do fast
Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? NEED ASAP PLS. Benjamin receives an annual bonus of $1,000 and wants to invest it in an account that earns interest for the next 3 years. Below are the two options that he is considering putting his money into. Which of the following statements is true? Bank A 5% Simple Interest Bank B 5% Interest Compounded Annually Simple Interest: /= Prt; Compound interest A=P(1+r)² O After 3 years, Bank B will pay Benjamin $1875 more than Bank B. O After 3 years, Bank B will pay Benjamin $3000 more than Bank A. O After 3 years, Bank B will pay Benjamin $1007.63 more than Bank A. O After 3 years, Bank B will pay Benjamin $7.63 more than Bank A. O After 3 years, Bank A will pay Benjamin $10.13 less than Bank B.
Our company is considering to start a new product. We must choose between 3 options. Use Excel to decide which option to choose (if any). o Option 1 costs $10,000 and will earn $2000 annually O Option 2 costs $15,000 and will earn $2750 annually Option 3 costs $20,000 and will earn $3500 annually O Letâ€™Ms define the lifetime of the products as 30 years. In Excel, construct a table and graph of the 3 Present Worths versus interest rate Summarize in a table at which range one is preferred over the other
Define the term Net-Present-Worth Criterion?
After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $6,000 in savings to start your own consulting firm. You could earn an interest return of 5 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $9,000 in rent, $850 in office supplies, $18,000 for office staff, and $3,500 in telephone expenses. Your explicit costs are $ Your implicit costs are $
After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $7,000 in savings to start your own consulting firm. You could earn an interest return of 7 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $10,000 in rent, $1,000 in office supplies, $24,000 for office staff, and $3,500 in telephone expenses. Explicit costs include all costs for which direct payments are made Rent ($10,000), office supplies ($1,000), staff salaries ($24,000), and telephone ($3,500) = $ Implicit costs include opportunity costs: foregone wages ($40,000), and foregone interest payments ($7,000x7%) = $ Suppose, that you have now operated your consulting firm for a year. At the end of the first year, your total revenues are $78,000 Your accounting profit is $ Your economic…
3. Your boss has suggested that, instead of a savings of $37,000 annually, it makes more sense to expect a savings that starts at $20,000 in year 3 and rises $2,000 per year to an ending value in year 13 of $40,000. She bases her suggestion on the fact that the experience curve will gradually reduce production costs. What would be the NPV of the cash flow at 4% if you adopt her suggestion?
You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is the opportunity cost to you of using the land to grow blueberries for a year? O a. $2,000 O b. $4,800 OC. $5,000 d. $9,800
What is the present value of $6,000 to be received 15 years from now if the interest rate is 15 percent? Multiple Choice O $400 $48,822.37 $737.37 $5,217.39
Hi. I'm not sure how u would get this answer. I keep getting a negative answer for investment 2.

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