Principles of Investment

Question 1

What should an investor consider when making an investment? Check all that apply.the rate of inflation, which could affect the value of the returnthe history of the investment, which will indicate the level of riskany taxes that will need to be paid at the state and federal levelsthe nominal interest rate, which will show the real profit to be madethe length of the investment, because long term always means high riskthe level of risk, because the higher it is, the higher the potential loss is

Revolt · Accepted Answer

the rate of inflation, which could affect the value of the return; the history of the investment, which will indicate the level of risk; any taxes that will need to be paid at the state and federal levels; the level of risk, because the higher it is, the higher the potential loss is

Question 2

$800✔ $1,000X $1,200

Revolt · Accepted Answer

✔ $1,000

Question 3

$2,200✔ $2,800X $3,000

Revolt · Accepted Answer

✔ $2,800

Question 4

✔ $200$400$600

Revolt · Accepted Answer

✔ $200; Annie must pay in taxes to the state government on her investment.: $200; She also must pay in taxes to the federal government.: $1,000; As a result of the money she will lose to taxes, the real value of Annie’s profit is .: $2,800

Question 5

$800✔ $1,000$1,200

Revolt · Accepted Answer

✔ $1,000

Question 6

$2,200✔ $2,800$3,000

Revolt · Accepted Answer

✔ $2,800

Question 7

Question 122592

Revolt · Accepted Answer

The state tax Patrick must pay on the initial profit is .: $346.25; The federal tax he must pay on the initial profit is .: $1,731.25; The inflation on the amount remaining after taxes is .: $145.43; As a result, the real value of Patrick’s profit in whole dollars is .: $4,702

Question 8

$1,750✔ $1,731.25X $2,100.75

Revolt · Accepted Answer

✔ $1,731.25

Question 9

$147$98.75✔ $145.43

Revolt · Accepted Answer

✔ $145.43

Question 10

$4,825$4,678✔ $4,702

Revolt · Accepted Answer

✔ $4,702

Principles of Investment Answers

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