How was the interest determined

Assignment Help Accounting Basics

Reference no: EM131969089

Problem

For all questions assume the relevant tax rate is 30 percent and all annuities begin at the end of year 1.

A. The $30,000 of excess liquidity is earning 5 percent compounded monthly in a money market fund. This is 5.12 percent annualized return. How was this determined?

B. This annualized return of 5.12 percent results in an after-tax return of 3.58 percent since taxes on any interest must be paid each year. How was this determined?

Reference no: EM131969089

Questions Cloud

What are the functions or roles of management : What are the functions or roles of management? How have you seen these functions used well or not handled well by your managers?

Explain how an informal information network : Please explain how an informal information network (grapevine) effects communication within an organization.

What impact would decline have on financial instruments : What impact would that decline have on other financial instruments? (Mortgages, Money Market Instruments, Stock)

Evaluate and fully describe the research methods : issues relevant to the research must be discussed and a time plan for its completion must be calculated and displayed as a Gantt chart

How was the interest determined : This annualized return of 5.12 percent results in an after-tax return of 3.58 percent since taxes on any interest must paid each year. How was this determined?

Determine the projects initial investment outlay : The project will also require an initial $276, 654 investment in net working capital. What is the project's initial investment outlay?

Organization that embraces globalization : Can you see a connection to the phrase "top at the top" and the organization that embraces globalization? How are the two relevant to each other?

Employees to combat job stress : What are some techniques or programs organizations offer to their employees to combat job stress?

Calculate the amount of interest capitalized : On January 1, 2013, the Shagri Company began construction on a new manufacturing facility for its own use. Calculate the amount of interest capitalized

User Account

All Pages