1. Individuals who switch from a low-demand industry to a high-demand industry u

ID: 2816542 • Letter: 1

Question

1. Individuals who switch from a low-demand industry to a high-demand industry usually earn higher incomes.

Select one:

True

False

2. Danny invests $124,090 in a fund and expects to receive $10,000 per year for the next 30 years. What is the approximate rate of return?

Select one:

a. 8 percent

b. 7 percent

3. Students should not file income tax returns because they have to pay sales taxes such as the GST and PST.

Select one:

True

False

4. The longer the time period, the lower the present value interest factor, other things being equal.

Select one:

True

False

5. Interest and dividends received by an individual taxpayer are taxable.

Select one:

True

False

Question: (1)

Answer: False. Because Competition and many other factors also matters.

Question (2)

Solution: Total of PV factor @7% for 30 years = 12.4090

And because, present value of $10,000 @7% for 30 year = $10,000× 12.4090 = $124,090

Thus, answer is option b. 7%

Question (3)

Answer: False. Because indirect tax(i.e. Gst) is different from income tax(i.e. Direct tax)

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