Interest rate and savings

Related BrainMass Solutions

• Computing Tax Savings

  ., who has a 15% marginal rate on ordinary income and earned $290 interest on her investment in U.S. savings bonds. b. Mr. K., who has a 35% marginal rate on ordinary income and earned $290 interest on his investment in U.S. savings bonds.

• Amount of annual tax savings

  Annual tax savings= Tax shield on interest Here Interest = Interest rate * Debt =1000000*8% 80000 Annual tax savings= Interest *Tax rate =80000*(1-.3) 24000=Answer.

• Rajiv and Laurie Amin are recent college graduates looking t

  payments do not generate any tax savings, therefore the after-tax savings from the lower interest rate is the same as the before-tax savings of $900.

• An upward sloping supply curve

  Higher interest rates will be necessary to achieve the same rate of savings in the economy. We can eliminate C as an answer because savings is good for the long run health of the economy, and so a tax on savings creates a burden.

• Interest rate risk and swaps for commercial banks

  Swap: Commercial bank can send payments at variable rate to the savings bank @ T-bill + 1% and receive payment @ fixed rate of 9.5% from the savings bank.

• Interest of Continuous Compounding

  If I choose to keep my money for five years in a savings account with a 2% interest rate or in a five year certificate of deposit with and interest rate of 4.5%.

• Investment Stocks

  after-tax interest rate?

• market interest rate and savings

  61005 market interest rate and savings Suppose that at an initial cost of $1000, a homeowner can insulate his house and save $50 each year in heating bills. What is the highest interest rate at which the homeowner should insulate?

• Compound interest

  196669 Compound interest in a savings account The interest rate offered on a passbook savings account is 3.78% APR compounded continuously. Another account compounds interest monthly.

• the equilibrium interest rate

  A decrease in the money supply shifts the money supply curve leftward to MS2 and the equilibrium interest rate rises to r2.