A new investment opportunity for you is an annuity that pays $2,750 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

The City of Pawnee, IN (not a real city) is planning to build a new hospital next year that has a property value of $100 million. The Pawnee government plans to keep the property tax rate the same every year and to provide the same government services as they did last year. That is, the total budgeted expenditures and income from other sources will remain unchanged. Note: This question does not require any numerical calculations.

1. Will the average amount of property taxes paid by property owners in Pawnee will increase, decrease, or stay the same.

2. Explain your reasoning by using the tax rate formula and your knowledge about property tax exemptions.

A new investment opportunity for you is an annuity that pays $700 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

A new investment opportunity for you is an annuity that pays $1,250 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer.

All of the following are true of the new Form 7200 EXCEPT that it:

May be used when the available credit exceeds the payroll tax liability,

Replaces the Form 941 for the quarter in which it is used.

Allows employers to claim a credit prior to filing Form 941.

May be filed via fax.

Current salary is $76,500, what is new salary with 4.5% inflation?

You are considering the purchase of a new stock. The stock is forecasted to pay a dividend next year (D1) of $3.49. In addition, you forecast that the firm will have a stable growth rate of 3.8% for the foreseeable future. The current risk-free rate of return is 1.4%. The expected return on the market is 11.4% and the standard deviation for the market is 13%. The stock has a correlation to the market of 0.21. Finally, the stock has a standard deviation of 24%.

Given this information, what is the value of this stock? (Hint: Use the constant growth pricing model)

The Dean of Instruction at a local college requested that a new standardized test for an introductory statistics course be developed with the requirement that it should have µ = 100 and σ = 10. A class of 30 students complete the new test with a mean grade of 95. Conduct a hypothesis test at α = .05 to determine whether the claim that µ = 100 can be supported. Use the p-value approach and complete the following to show how this would be done.

1. State the null and alternative hypotheses in words and in statistical symbols.
2. What statistical test is appropriate to use? Explain the rationale for your answer.
3. What is the value of the test statistic and the p-value of that outcome?
4. Interpret the outcome in terms of the original claim.
5. What is unusual about this hypothesis test?

You discover an organism with a new mutation in the gene that you are studying that changes the codon in the mRNA from a GCC (Ala) to a GAC (Asp) causing a mutant phenotype. You feed this organism a mutagen and find that in one of its progeny the phenotype has now reverted back to wild-type. When you look at your gene in this offspring you find the mutation GAC (Asp) has been changed back to the original GCC (Ala). This is an example of