Amount of annual tax savings
Not what you're looking for?
1. A credit union offers a savings account with the interest rate of 6% compounded annually. If $100 is deposited, how long does it take to triple the money if no money is ever withdrawn from the account?
2. Company X and Company Y have the same assets but different capital structures. Suppose Company X has no debt and Company Y has $1,000,000 debt with 8% interest. If the tax rate for the 2 companies is 30%, what is the amount of annual tax savings for Company Y compared to Company X?
Purchase this Solution
Solution Summary
Response helps in computation of amount of annual tax savings.
Solution Preview
A credit union offers a savings account with the interest rate of 6% compounded annually. If $100 is deposited, how long does it take to triple the money if no money is ever withdrawn from the account?
Here we have to find the ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Introduction to Finance
This quiz test introductory finance topics.