1)For an unreimbursed loss due to damage or theft attributable to a federally declared disaster, the tax law allows you

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1)For an unreimbursed loss due to damage or theft attributable to a federally declared disaster, the tax law allows you to deduct the ? amount of the loss less $100 less 10 percent of your AGI. B amount of the loss less $100. full amount of the loss. D amount of the loss less 10 percent of your AGI. 2)Suppose you borrow from a bank $2,464.26 today (t=0). You agree to pay back $4,205.28 in 3 years (t=3). The interest rate (%) that the bank charge you is closest to %. Input your answer without the sign and round your answer to two decimal places. QUESTION 24 %. Input your If an investment providing a nominal return of 11.18% only offers a real rate of return of 6.53%, then the exact inflation rate (%) is closest to answer without the % sign and round your answer to two decimal places. QUESTION 25 A $1,000 bond with a coupon rate of 3% paid semi-annually has 11 years to maturity and a yield to maturity of 10%. The price of the bond is closest to $ Input your answer without the $ sign and

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1) Correct answer to this question is option (A) i.e. Amount of loss less $100 less 10% of your AGI. Reason : Personal casualty and theft losses attributable to a federally declared disaster are subject to the $100 per casualty and 10% of your adjusted gross income (AGI) limitations. Therefore we can deduct $ 100 and 10% of AGI from the amount of loss. Please leave a feedback with thumbs-up if found your answer. If still you have any query feel free to comment. 2) a) Given Present value = 2464.26 Future value = 4205.28 time period in years = 3 r = annual rate of interest = ? We that that the future value is given by the following formula, Future value = present value*(1+interest rate)^number of years Substituting the above given values, we get 4205.28 = 2464.26*(1+r)^3 4205.28/ 2464.26 = (1+r)^3 1.7065 = (1+r)^3 (1.7065)^(1/3) = (1+r) (1.7065)^(0.333) = (1+r) 1.1950 = 1+r r = 1.1950 - 1 r = 0.1950 r = 19.5% The interest rate that the bank will charge is 19.50 b)Given Nominal rate of return = 11.18% = 0.1118 real rate of return = 6.53% = 0.0653 The inflation rate is computed as shown below: (1 + Nominal rate of return) = (1 + real rate of return) x (1 + inflation rate) (1 + 0.1118) = (1 + 0.0653) x (1 + inflation rate) 1.1118 = 1.0653*(1 + inflation rate) 1.1118/ 1.0653 = (1 + inflation rate) 1.0436 = 1+ inflation rate inflation rate = 1.0436 - 1 inflation rate = 0.0436 inflation rate = 4.36% Therefore the inflation rate is closest to 4.36 c) Given Annual coupon rate = 3%

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1)For an unreimbursed loss due to damage or theft attributable to a federally declared disaster, the tax law allows you to deduct the ? amount of the loss less $100 less 10 percent of your AGI

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