During 2015,Esther Had the Following Transactions: Salary $70,000 Interest Income

question 163

Multiple Choice

During 2015,Esther had the following transactions: Salary $70,000 Interest income on Xerox bonds 2,000 Inheritance from uncle 40,000 Contribution to traditional IRA 5,500 Capital losses 2,500 Esther's AGI is:

• A)$62,000.
• B)$64,000.
• C)$67,000.
• D)$102,000.
• E)$104,000.

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Definitions:

Discount Rate

In the realm of discounted cash flow analysis, this interest rate is used to calculate the present value of expected future cash flows.

Payments

The process of transferring money in exchange for goods or services or as fulfillment of obligations.

Years

A unit of time equal to 365 days (or 366 in a leap year), used to measure duration or age.

Compounded Monthly

The process where interest earned on a loan or investment is calculated and added to the principal amount each month, facilitating growth in the investment or debt.