MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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4. You want to save for your child’s education, you can either choose an investment that is federally tax free that earns 6% or a taxable investment that earns 7%. If your marginal tax rate is 25%, which should you choose?
5. what formula did you use?
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- Sascha owns stock in Lewis Corp and she bought a $5,000 corporate bond. She received $52.50 in quarterly interest from the bond. Sascha also owns stock in Lewis Corp which is worth $46 per share, and it pays a $2 annual dividend. Part A Which is higher, the yield on the stock or the annual interest rate on the bond? Show your work and explain how you determined your solution. Part B If the bond matures in seven years, how much will Lewis Corp have paid Sascha in total? Part C If Sascha owns 1,500 shares of Lewis Corp, how much would she receive in annual dividends? Part D If Lewis Corp later offers corporate bonds at an annual interest rate that is one percent higher than half the of the bond Sascha bought, create an equation that models the quarterly interest earned, q, for any given bond face value, v.arrow_forward3. Sloane wants to purchase a package of tennis memorabilia in 6 years. The package costs 350 today but increases its price by 4.5% per year. Sloan decides to deposit 28 into an account at the beginning of each year for 6 years. She also deposits an additional amount Y at the beginning of years 3, 4, 5, and 6 to meet her goal. Calculate Y if the annual effective rate of interest is 9%.arrow_forwardAssume that you invest $5,000 into a savings account that compounds at 8% quarterly. How long would it take for the investment to reach $7,500? Remember that for quarterly calculations we typically round all decimals up to the next quarter (0.25, 0.5, 0.75 or 1.0) as that implies we need more quarters than the value provided. a. 1.5 years b. 10.75 years c. 20.5 years d. 5.25 years ⚫e. 5.5 yearsarrow_forward
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