Question

Fill in blank:

1-The Shark Aggressive Mutual Fund has assets of $5million and liabilities of $750,000 The number of shares outstanding is 250,000. What is the Net Asset Value (NAV) or share price of the fund ______________________

2-At a minimum, you should invest enough into your employer sponsored retirement plan to receive the maximum _____________ _____________ from your employer, if it is offered

3-You recently received some information regarding a prospective employer's retirement plan You notice the vesting schedule is 20% each year for your first five years of employment, after five years you are 100% vested. This is an example of_________________ ________________

4- Regardless of income we all pay the same amount of sales tax for our purchases therefore sales tax would be considered a ____________ tax

Answer 1

1.Ans.

1-The Shark Aggressive Mutual Fund has assets of $5million and liabilities of $750,000 The number of shares outstanding is 250,000. What is the Net Asset Value (NAV) or share price of the fund _$17_

Calculation of mutual fund nav or per share price

= total assets-total liabilities/no. of outstanding share

=$5000000/$750000/250000

=$17 per unit

Ans.-2-

At a minimum, you should invest enough into your employer sponsored retirement plan to receive the maximum Matching fund(it are like getting free money) from your employer, if it is offered

employer sponsored retirement plan is a big sourece of income if we get Matching fund(it are like getting free money) on the time of retirement

3.Ans.-

3-You recently received some information regarding a prospective employer's retirement plan You notice the vesting schedule is 20% each year for your first five years of employment, after five years you are 100% vested. This is an example of cliff vesting

cliff vesting- in cliff vesing a employer fully veted at a specified period of time , so in this plan if employee leave the company before becoming a fully vestingthen he would not receive any retirement benifits

Ans.-4-

Regardless of income we all pay the same amount of sales tax for our purchases therefore sales tax would be considered a Regressive tax

Regressive tax- sales tax are considered as regressive tax becouse of that are taken from larger % of income from low income class tax payer