Question

Daron works as a human resources manager for an energy company earning $108,600 annually. He owns 400 shares of stock in a communication company that pays a quarterly dividend of $0.65 per share. Daron also owns a municipal bond with the pa value of $3,000 and an annual interest rate of 4.5% that pays interest semiannually. Calculate Daron's annual income.

Answer 1

Daron receives money from hee different sources.

1. $108,600 from work

2.

`400*0.65=260`

$260 from the shares of stock and

3.

`3000*0.045=135`

$3135 from the muunicipal bond.

Then, Daron's annual income is

`108600+260+135=108995`

$108995.