Maria owns 3,200 shares of a corporation that pays a quarterly dividend of $0.27 per share. How much should she expect to receive in a year?

Q: Suzie is 20 and want to retire at the age of 50. If she invests a $100,000 inheritance at 8.4%…

A: The amount at the end of 50 years can be calculated with the help of future value function.

Q: Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have…

A: Simple interest is the method of calculating interest on the amount of investment. A fixed amount is…

Q: Suppose that Ramos contributes $5000/year into a traditional IRA earning interest at the rate of…

A: Amount deposit every years (PMT) = $3700 Interest rate earned on deposit ( r) = 5% Number of periods…

Q: A manager retired at age 65, and has her retirement savings of $650,000 invested in a mutual fund…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Alex purchases 100 stocks in a company that pay dividends of $10 every year for the next 5 years.…

A: Solution: We know, present value means the value of future income in today’s terms by discounting it…

Q: Jenny has a monthly salary of $5,000 and an additional monthly allowance of $1,000. In Year 2020,…

A: In this we have to find out monthly mortgage payments and from that we can get the MSR and TDSR.

Q: Komiko Tanaka invests $18,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Komiko Tanaka invests $14,500 in LymaBean, Incorporated. LymaBean does not pay any dividends. Komiko…

A: Capital gain can be short-term or long-term based on the time period. If the asset is sold in one…

Q: ayla invests $3000 for 8 months in an account that earns /./% hat amount will Shayla receive when…

A: The question is related to equation that models number of new trees and in the second question total…

Q: At the beginning of the year, Megan had a Net Worth of $78,000. As of January 2021, she set aside…

A: The question is related to Net Worth as on December 31st 2021.  Net Worth = Total Assets -…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: Hayley recently invested $31,000 in a public utility stock paying a 6 percent annual dividend.…

A: Qualified Dividend: Generally speaking, qualified dividends are dividends received from shares of…

Q: Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of…

A: Future value of money includes the amount that is being deposited and amount of compounding interest…

Q: Kerry invests $234 in a savings account that earns 2.1% compounded annually. Andy invests $234 in a…

A: Formulas: Future value = Present value *(1+rate)^years

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: January borrowed $25,000 from her uncle that she must pay back in January 2022. She for $125,000.…

A: Net value is calculated by subtracting all liabilities from all assets. A liability is a commitment…

Q: Brooke invested $4,500 in the stock market with the expectation of earning 6.25 percent.She actually…

A: Given, Actual Return earned = 7.15% Expected Return = 6.25%

Q: Trish invests $6,000 in her IRA in a bond trust that pays 11% interest compounded semiannually. Sean…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Sara opens a brokerage account and purchases 400 shares of Tesla at $20 per share She borrows $3,000…

A: Any one wishes to trade in stock have to open account with broker and keep margin in broker account…

Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…

A: Compound interest refers to addition of interest to principal sum of loan or deposit.

Q: age 35, having received an annual salary of $85,000, and that the interest rate is 8 a) What is the…

A: Present value is the equivalent today of the future cash flow based on time and interest that would…

Q: One year ago, Irlene purchased some bonds at a value of $2, 876 and received two semi- annual…

A: Bond yield refers to the return on investment that an investor receives from owning a bond. It…

Q: Abigail invested $77,000 in an account paying an interest rate of 8\tfrac{3}{8}883​% compounded…

A: The time value of money has two techniques. The compounding and the present value method. The…

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: The amount of money can be calculated as future value of the principal amount.

Q: Jim invests $15,000 today into an account, If the amount in the account accumulates to $17,364.37 at…

A: The rate of interest can be computed with the help of future value function.

Q: awn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of…

A: Here, Annual Payments is $2,000  Time Duration of Investment is 10 years Interest Rate is 8%

Q: "Christopher recently inherited $ 1,290,000, which she immediately invested in an equity index…

A: Amount invested today = $1,290,000Monthly withdrawal = $6,000Number of years = 47 yearsAccount…

Q: When Deborah purchased her home for 310,000 she put down a deposit of 8% besides her original…

A: Down payment = purchase price * 8%                          = 310000* 8%                         = $…

Q: You are single and earns and income of $80,000 a year. Recently, you sold stocks that you had held…

A: The capital gain normally arises when there is an appreciation in the value of the capital assets.…

Q: Jillian invested $2,000 six years ago at 4.5 percent interest. She spends all of her interest…

A: Data given: Amount invested=$2000 Interest rate=4.5% Jillian spends all of her interest earnings…

Q: Stella plans to purchase 100 shares of a stock (ticker: HOOD) that is currently trading at $72 per…

A: Stella plans to purchase 100 shares at $72 per shareShe also takes a call loan of $4,000The broker…

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.