Since john pays back the amount of $120, then, the interest is known as Simple interest.
The Simple interest is the easiest method of calculating an interest rate on a loan.
- However, the compound interest is entails interest derived on a loan based on initial principal and the accumulated interest over period of time
Hence, since john pays back the amount of $120, then, the interest is known as Simple interest because the interest is not accumulated.
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Answer:
equal to the british interest rate
Explanation:
Data provided in the question
The Interest rate on these securities = 12%
In the U.S, the interest rate = 10%
Also the spot rate for today would become suitable for the spot rate
Based on the above information, the effective yield on the british securities would be equivalent to the british interest rate and hence the same is to be considered
Answer:
First Airplane Payback Period = 3 years
Second Airplane Payback Period = 4 years
Since, First Airplane is going to repay the Original Cost of the Airplane in shorter amount of time as compared to Second Airplane. Therefore, if the the decision is based on the payback approach the North should accept First Airplane.
Explanation:
NORTH AIRLINE COMPANY
<u>First Airplane:</u>
Payback Period = Original Cost of the Asset / Annual Cash Inflow
Payback Period = $12,000,000 / $4,000,000
Payback Period = 3 years
<u>Second Airplane:</u>
Payback Period = Original Cost of the Asset / Annual Cash Inflow
Payback Period = $24,000,000 / $6,000,000
Payback Period = 4 years
Answer:
Ashley may not claim Candy as her dependant even if other requirements are met.
Explanation:
Ashley is single and lives with Barney, her boyfriend, and Candy, his 8-year-old daughter. Ashley paid all of the support for her household in 2018. Barney has earned income of $2,500 and had income tax withheld from his wages. He has no other income and is not required to file an income tax return. With one qualifying child, Barney may claim an earned income credit. Barney files an income tax return solely to obtain a refund of withheld income taxes and does not claim EIC. Because Barney does not have a filing requirement and filed only to obtain a refund of withheld income taxes, Candy is not considered the qualifying child of Barney or any other taxpayer
Based on the explanation given Ashley cannot claim Candy as an independent because of the tax payer rule. If other requirements are met, Ashley cannot claim Candy as dependent because the girl in question isn't her child . Moreover, Candy is the full responsibility of Barney. Candy is under Barney's care and is solely required by law to take care of her.
Answer:
The correct answer is the option E: Obtaining additional equity is dependent on the owner's personal finances.
Explanation:
To begin with, a <em>sole propietorship</em> is the name given to a type of company whose main characteristic is that <em>the ownership belongs to a single person</em> and that<u><em> there is no distinction between that person and the company</em></u>, therefore that the owner obtains all the profits but also has unlimited responsibility for all losses and debts.
Secondly, it is understandable that for this type of company it is difficult to obtain financing and that can only be done by two ways: debts or equity. Moreover, in order to do that, <em>the owner's personal finances have to go well according to the fact that the owner is equal to the entity</em> and therefore there is no distinction from the finances of both.
