This paper circulates around the core theme of Your best friend consults you for investment advice together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Your best friend consults you for investment advice. You learn that his tax rate is 35%, and he has 1 answer below » Your best friend consults you for investment advice. You learn that his tax rate is 35%, and he has the following current investments and debts: A car loan with an outstanding balance of $5000 and a 4.8% APR (monthly compounding) Credit cards with an outstanding balance of $10,000 and a 14.9% APR (monthly compounding) A regular savings account with a $30,000 balance, paying a 5.50% EAR A money market savings account with a $100,000 balance, paying a 5.25% APR (daily compounding) A tax-deductible home equity loan View complete question » Your best friend consults you for investment advice. You learn that his tax rate is 35%, and he has the following current investments and debts: A car loan with an outstanding balance of $5000 and a 4.8% APR (monthly compounding) Credit cards with an outstanding balance of $10,000 and a 14.9% APR (monthly compounding) A regular savings account with a $30,000 balance, paying a 5.50% EAR A money market savings account with a $100,000 balance, paying a 5.25% APR (daily compounding) A tax-deductible home equity loan with an outstanding balance of $25,000 and a 5.0% APR (monthly compounding) Which savings account pays a higher after-tax interest rate? Should your friend use his savings to pay off any of his outstanding debts? Explain. View less » Sep 17 2015 01:46 PM
