a. How much of the $9,000 consulting services will Hank include in his income this year if he uses the cash method of accounting? What amount can Nancy deduct this year for the consulting services?

Gina deposits her inheritance into an account earning interest of 4% compounded annually. She will not withdraw the money until the balance has doubled. How long will Gina have to leave the money in the account?

Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum.   Required:   How would you define the amount of $30 000 and $150 000 in terms of the time value of money?                                                                                                                ANSWER a (i): (answer box will enlarge as you enter your response)   How long will she have to wait until she reaches the goal of $150 000?                                                                                                               ANSWER a (ii):   Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…

1. What is the total balance in the account after 40 years? 2. How much of the total did Pamela contribute herself? 3. How much money did Pamela make through compounded return in this investment account?

An acquaintance asks Kara to borrow money today to help her repair her car. The person will be able to repay Kara $500 in one year, and Kara is fully expects she will be repaid on time (risk free).  If Kara requires a 5.0% return, what (largest) amount should she lend to her acquaintance?$525.00$495.00$475.00$476.19$471.43

Gail decided that in six years she would leave her job in publishing and retire to Arizona. What amount should Gail invest today, so that she will be able to withdraw $50,000 at the end of each year for 30 years after she retires? Assume she can invest money at 5%, compounded annually.

Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,100 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,600 in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend’s future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $68,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $68,500 purchase price? 4. You have estimated that your educational expenses…

Your client, Karna, has asked you for some advice. He would like to know how much he can contribute to his RRSP in the current year without over contributing. Karna has a carry forward amount of $16,000 and a pension adjustment of $6,000 from the previous year. In addition Karna has been divorced for the past three years and pays $2,500 per month in alimony. Given this scenario and based on the financial information below, how much can Karna contribute this year? Base Salary Commission Bonus Investment Portfolio Capital Gains Dividends $5,000 $6,000 Total taxable income $136,000 Select one: Current Year Previous Year $85,000 $80,000 $25,000 $30,000 $15,000 $18,000 a. $29,080 b. $27,100 c. $27,640 d. $29,260 $4,000 $5,000 $137,000

Kat Receives 10,000 pesos monthly starting on March 2, 2023 until February 2, 2024 as a cash gift from Prince Cyrus. Assume that the money is worth 8.4% convertible monthly. a.) If she was to claim the entire worth of these cash gifts today, December 2, 2022, then how much is she entitled to receive from Prince Cyrus? b.) If she wishes ti return the money to prince Cyrus on May 2, 2024, how much should she return in total?

A financial engineer designs a new financial instrument that she calls the SafetyNet. This instrument gives the holder access to the following cashflows: • For the first 4 years, the holder receives $95 per year starting one year from today (a total of 4 payments). • The holder does not receive any cashflows for year 5. • Starting at the end of year 6, the holder receives $60 growing at a rate of 4% per year forever. • The holder has to pay a “service fee” of $7 every year starting at the end of year 2; this goes on forever. The prevailing discount rate throughout is 6%. The financial engineer would like to determine a fair market price for this financial instrument. What do you suggest this price to be? Please show your work.