Danny Said:

can some one help me with my homework?

We Answered:

Trick Question-- The right answer is none of the above.

They should use the 40 k to put down on a 200k house/condo they would have a lot more "leverage," than with the other investments with 40 K down they wouldn't have to pay PMI. They would be getting the 5% on the 200,000, even though they are only "investing" 40,000. The interest they pay would lower their taxes. They would be paying less than 1000/month for mortgage (p+i) which is probably less than they'd pay for rent. So that would be the "best," solution

Irma Said:

How bad is it to withdraw a job acceptance?

We Answered:

It is bad only if you try to work there later in a real world job. I have seen interns turn down job offers only later to see them not even considered for permanent full time jobs. I would consider contacting them on their offer to see what those consequenses are. Sometimes there are no second chances and you need to evaluate your situation. Nothing says that you can't intern at another more suitable employer after your internship is up. You will be better off with both experiences.

Clinton Said:

How do I do this assignment?

We Answered:

You have to know the applicable tax rates on each of the investments.

municple bonds is 0%
high growth stocks as long as you do not sell is also 0% but the tax bill will come due when they are sold.
Condominimum is also 0%, and there is also a tax advantage to investing in the cond. The interest on the mortgage is subtracted from taxable income if the couple has more than $10,000 in deductions.
Dividends are taxed at about 1/2 the normal tax rate for most common stocks but not all.
Saving account interest is fully taxed.
What you need to know but have not stated is the mortgage interest rate.
Also you need to know the expected growth rate of the high yield corpartate stocks which is not given. Many times they outperform growth stocks.

After tax returns:
municples 5%
condo 5% +++ because of mortgage interest maybe 7%
high growth stocks 10% provided they are never sold
savings account 2.16% less inflation at 4% nets -1.84%
high yield corporate stock 6.8% +- plus capital gains of maybe another 5% which was not given in the problem.

Lillie Said:

Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will ea

We Answered:

They should give it all to political campaigns of candidates that will restore the dollar so that they don't become like Argentinians or Russians that have their currency whisked away from them all of a sudden and replaced w/ new currency.