Jessica is very proud of herself for having $15,000 in her savings account that pays...
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Finance
Jessica is very proud of herself for having $15,000 in her savings account that pays 5 percent interest. She currently has a balance of $12,300 on her credit card account that charges 20 percent interest. Jessica thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance. What financial principle from Chapter 1 would you use to give her good advice?
A) Mind games, financial personality, and your money
B) The time value of money
C) Taxes affect personal financial decisions.
D) Both A and C
5) If you're in the 20% marginal tax bracket, what is the equivalent taxable yield on an 10% municipal bond?
A) 11.76
B) 13.33
C) 4.00
D) 12.50
Cameron has $10,000 in monetary assets and $4,000 in current liabilities. What is his current ratio?
A) 2.5 times
B) 0.5 times
C) 5 times
D) 0.4 times
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