Finance Answers

Why Gold Standard is considered to be fixed
exchange rate regime?

What are the current issues concerning India in WTO? Are multilateralism and
regionalism compatible?

Explain the important reasons for the emergence of horizontal federal fiscal imbalance.

Differentiate between the following:
1) Positive externalities and negative externalities
2) Optimal efficient tax structure and optimal tax system.
3)Current transfer and capital transfer.

Is there scope for inter-governmental competition in the Tiebout model? Explain.

Why is the Benefits Received Approach not applicable for direct taxes?

Hi. I'm trying to figure out how many employees a company needs to add base on the sales volume increased? 40 hours work week.

Sales Revenue=$1,020,000
Current Employees=74
Total hours for the month=13,757
Overtime dollar percentage=26%
Overtime dollar=$63,000

Would you be able to assist me in finding out how many more workers needed based on the above info? I don't know what formula to use?

I was thinking $1,020,000/74=$13,783 per ee / 26% = $53,014 / 160 = $331 / 8 = 41 employee?

Thanks,
Wen

You are working with the manager of an irrigation facility who is interested in installing a
more efficient pumping system. The proposed system costs $15,000 and you project that it will
reduce the annual utility costs by $2,000. After five years, you expect to upgrade the system for
$4,000. This upgrade is expected to further reduce utility costs by $1,000 annually. The annual
effective interest rate is 7% and the life of the system, after upgrade is 50 years. What is the
Present Value of the investment in the system?

You are considering an investment in a 40-year security. The security will pay RM25 a year
at the end of each of the first three years. The security will then pay RM30 a year at the end
of each of the next 20 years. The nominal interest rate is assumed to be 8 percent, and the
current price (present value) of the security is RM360.39. Given this information, what is
the equal annual payment to be received from Year 24 through Year 40 (i.e., for 17 years)?

1- You have just been promoted as the new assistant branch manager of a local-based
international bank. The branch manager, who is an expatriate, has asked you a question on
the different types of interest rate quotations. The question he asked is which rate should
the bank advertise on monthly-compounded loans - the nominal annual percentage rate or
the effective annual percentage rate? And which rate should the bank advertise on
quarterly-compounded savings accounts? Please explain to the branch manager which
quotation would attract consumers and why?