Answer:
Option (C) is correct.
Explanation:
Given that,
On November 1, 2018
Kate leased out a building = $4,500 a month
Received 7 months rental income = $31,500
Kate include on her 2018 tax return as a result of this transaction:
= Value of leasing out a building for a month × 2
= $4500 × 2
= $9,000
Therefore, the Kate include on her 2014 tax return as a result of this transaction = $ 9000
Answer:
a. It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Explanation:
Use the formula below to determine the number of months it would take Rachel to pay off her debt;
C *{1-(1+r)^(-n×t)}/(r/n)=PV
where;
C=annuity
r=annual interest rate
n=number of compounding periods in a year
t=number of years
PV=present value
In our case;
PV=$10,574
C=$260
r=16%=16/100=0.16
n=12
t=unknown
replacing;
260*{1-(1+0.16/12)^(-12×t)}/(0.16/12)=10,574
1-(1+0.16/12)^(-12×t)={10,574×(0.16/12)}/260
1-{1.013^(-12 t)}=0.542
(1-0.542)=1.013^(-12 t)
ln 0.458=-12 t (ln 1.013)
t=-ln 0.458/12×ln 1.013
t=5
It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Answer:
11%
Explanation:
Nominal interest rate = real interest rate + inflation rate
6% + 5% = 11%
Anticipated Inflation rate is the rate at which it is expected that price levels would rise.
Real interest rate is the rate of interest that has been adjusted for the effects of inflation.
I hope my answer helps you
<span>Oriental trading company will be more effective if it has a mechanistic structure.
According to Burns and Stalker who came up with this term, mechanistic structure involves </span><span>organizational complexity, formalization, and centralization. It is the type of structure which best fits the description given above.</span><span>
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