Finance and Investment assignemnt 1 - Assignment Example

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Finance and Investment assignemnt 1

FV W/ Cont. Compounding =PV*e^rt Where: PV= Present Value R= Rate T= Time (i) Annually FV= $ 1,000*e^(.45)(1) $ 1,046.00 (ii) 6 monthly FV= $ 1,000*e^(.45/2)(1*2) $1,046.00 (iii) Quarterly FV= $ 1,000*e^(.45/4)(1*4) $1,046.00 (iv) Monthly FV= $ 1,000*e^(.45/12)(1*12) $1,046.00 (v) Daily FV= $ 1,000*e^(.45/365)(1*365) $1,046.00 (vi) Hourly FV= $ 1,000*e^(.45/8760)(1*8760) $1,046 (c) Effective interest rate tries to determine the entire cost of borrowing. It accounts for the effect compounding interest which is excluded from the stated or nominal interest rate. ...
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Bank 2005 Finance and Investment Name: Course: Professor: Institution: City and State: Date: Question 1 (a) The assessable capital gain Gross capital gain= $ 15,000- $ 10,000 $ 5,000 (b) Net assessable capital gain Net assessable capital gain= Gross capital gain- Transaction costs-capital losses brought forward Net assessable capital gain=$ 5,000-0 $5,000 (c) Medicare Levy=1.5% Capital gain tax= (45-1.5)%*&5,000 $2,175 Question 2 (a) Taxable Income Tax Rate $0-$ 18,200 0% $18,201-$37,000 19% $37,001-$80,000 32.5% $80,001-$180,000 37% Over $ 180,000 45% (b) Taxable Income Tax at applicable rates Net Pay $19,000 3,610 15,390 $37,000 7,030 29,970 $ 60,000 19,500 40,500 $100,000 37,000 63,000 $ 1…
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