Question

In: Finance

Gwen had three accounts as listed here. In 2014, how much was her total coverage by...

Gwen had three accounts as listed here. In 2014, how much was her total coverage by the FDIC?

  • Bank A: $295,000
  • Bank B: $55,000
  • Bank C: $295,000

Multiple Choice

  • $55,000

  • $295,000

  • $555,000

  • $645,000

  • $895,000

What is the APY for a one-year $5,000 certificate of deposit with $825 interest? (Round your answer to 2 decimals.)

Multiple Choice

  • 8.25%

  • 8.26%

  • 10.31%

  • 13.20%

  • 16.50%

What is the APY for a savings account with a $390 balance that receives $16 interest for the year? (Round your answer to 2 decimals.)

Multiple Choice

  • 2.05%

  • 4.10%

  • 4.20%

  • 6.04%

  • 8.00%

Opal earned 15.0% in her savings account. If she is in the 29% tax bracket, what is her after-tax savings rate of return? (Round your answer to 2 decimals.)

Multiple Choice

  • 7.75%

  • 2.90%

  • 10.65%

  • 15.00%

  • 29.00%

Solutions

Expert Solution

Question 1: Option C - $555000

FDIC is the acronym for Federal Deposit Insurance Corporation.

This corporation covers insurance for the deposits made by anhy citizen of US in the banks that are under its pruview of insurance cover.

The rules for the coverage on deposits is that the FDIC covers maximum of $250000 per depositor in each bank but not more than the actual deposit amount. If a person holds deposits in 2 banks, FDIC covers maximum coverage for maximum of $250000 in both banks separately, not more than actual deposits held.

In the given question, Gwen had 3 accounts in 3 banks, Bank A, B, And C, assumed all three banks are covered under FDIC.

In Bank A he has deposits of $295000, where the coverage is maximum of $250000

In Bank B, he has deposits of $55000, where the coverage could be upto maximum of $250000, but not more than actual deposits held. Thus, the coverage here is $55000

In Bank C, he has deposits of $ 295000, where the coverage is $250000

Therefore the total coverage by FDIC is $555000 (250000+55000+250000)

Question 2: Option E - 16.50%

Certifcate of $5000 yields $825 in one year.. It means, the APY = (825/5000)x100 = 16.50%

Question 3: Option B - 4.10%

Savings Account with balance $390 earns interest of $16 in one year, means the APY = (16/390)x100 = 4.10%

Question 4: Option C - 10.65%

Opal earns 15% on his savings account, amnd he is under 29% tax bracket, which means 29% tax is levied on the 15% interest earned. the net interest eraned is 15% - (15x0.29)% = 15% - 4.35% = 10.65% after tax savings rate of return.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Here is my algorithm: Ask how much time they need to do the assignment(Total hours) Ask...
Here is my algorithm: Ask how much time they need to do the assignment(Total hours) Ask how many days are available Calculate hour per day needed Store time needed per day in a variable 2. How many hours per day are available Store hours available per day in a variable Ask user how much time is spent doing other things Calculate how much time is available per day 24- (# of hours not available) Display how much time is available...
On January 1, 2014 Primo Corporation had the following had the following equity accounts.   Amount in...
On January 1, 2014 Primo Corporation had the following had the following equity accounts.   Amount in OMR Share Capital – Ordinary 750,000 (OMR 10 par value, 75,000 shares issued and outstanding) Share Premium – Ordinary 200,000 Retained Earnings 540,000 During the year, the following transactions occurred. Jan. 15 Declared an OMR 1 cash dividend per share to shareholders of record on January 31, payable on February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 30%...
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by...
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $508 each.    Costs 1. Plastic for casing—$20,000 2. Wages of assembly workers—$88,000 3. Property taxes on factory—$7,000 4. Accounting staff salaries—$37,000 5. Drum stands (1,000 stands purchased)—$41,000 6. Rent cost of equipment for sales staff—$12,000 7. Upper management salaries—$180,000 8. Annual flat fee for factory maintenance service—$18,000 9. Sales commissions—$26 per unit 10. Machinery depreciation, straight-line—$37,000 Required:...
How much (in percentage) of the total trade for 2019 correspond to the top three trading...
How much (in percentage) of the total trade for 2019 correspond to the top three trading partners (Mexico, Canada and China) COMBINED? 2. Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month Labor-Hours Machine-Hours Overhead Costs 1 3,900 7,000 $ 515,000...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014 of $44,500. Sam reported credit sales of $5,000,000 in 2014 and wrote off receivables of $43,000 during 2014. At the end of the year, Sam estimates un-collectible accounts receivable based on the year-end aging using the assumptions provided at left. What should the balance be in Sam's Construction allowance for doubtful accounts as of December 31,2015? As of December 31, 2015 Estimated Days Past...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014 of $44,500. Sam reported credit sales of $5,000,000 in 2014 and wrote off receivables of $43,000 during 2014. At the end of the year, Sam estimates un-collectible accounts receivable based on the year-end aging using the assumptions provided at left. What should Sam report as bad debt expense for 2015? As of December 31, 2015 Estimated Days Past Due Receivables Uncollectible 0-30 days past...
If a bank has a Liquidity Coverage Ratio of 104%, and HQLA of $45,650,000, how much...
If a bank has a Liquidity Coverage Ratio of 104%, and HQLA of $45,650,000, how much does the bank expect to run off in cash flow during the next 30 days? Ans: ________________________ A bank has an NSFR of 178%. How much more stable capital does the bank have compared to its RSF, if the required amount is $1.673 billion?   Ans: _______________________________
Given the returns and probabilities for the three possiblestates listed here, calculate the covariance between...
Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.12 and 0.15, respectively. (Round your answer to 4 decimal places. For example .1244) Probability Return(A) Return(B) Good 0.35 0.30 0.50 OK 0.50 0.10 0.10 Poor 0.15 -0.25 -0.30  
Charming Paper Company sells to the 12 accounts listed here.       Account Receivable Balance Outstanding Average...
Charming Paper Company sells to the 12 accounts listed here.       Account Receivable Balance Outstanding Average Age of the Account Over the Last Year A $ 66,800 25 B 154,000 42 C 77,800 14 D 21,800 56 E 52,100 42 F 254,000 35 G 35,600 20 H 392,000 66 I 44,100 38 J 92,800 58 K 263,000 23 L 68,900 36      Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less; 80...
Charming Paper Company sells to the 12 accounts listed here.       Account Receivable Balance Outstanding Average...
Charming Paper Company sells to the 12 accounts listed here.       Account Receivable Balance Outstanding Average Age of the Account Over the Last Year A $ 66,800 25 B 154,000 42 C 77,800 14 D 21,800 56 E 52,100 42 F 254,000 35 G 35,600 20 H 392,000 66 I 44,100 38 J 92,800 58 K 263,000 23 L 68,900 36      Capital Financial Corporation will lend 90 percent against account balances that have averaged 30 days or less, 80...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT