A capital gain is the return on an asset that results when its market price rises above the price an investor paid for it. A capital gain is the profit that someone receives from the sale of a property or an investment. If you invest in an item and then sell it for more than what you paid for it originally, then you have a capital gain because you profited off the item.
Answer:
The period of payback of the project is 2.30 years. Therefore, the correct answer is C
Explanation:
We will computing the Cumulative Cash Flow from Year 0 to Year 3
Cumulative Cash Flow Year 0 = Cash Flow of Year 0
= -$1,150
Cumulative Cash Flow of Year 1 = Cash Flow of Year 1 + Cash Flow of Year 0
= $500 + (-$1,150)
= -$650
Cumulative Cash Flow of Year 2 = Cash Flow of Year 2 + Cumulative Cash Flow Cash Flow of Year 1
= $500 + (-$650)
= -$150
Cumulative Cash Flow of Year 3 = Cash Flow of Year 3 + Cumulative Cash Flow Cash Flow of Year 2
= $500 + (-$150)
= $350
Now, Computing the Pay back period with the formula:
Pay back period = 2 + (Cumulative Cash Flow of year 2 / Cash flow of year 3)
= 2 + (-$150/ $500)
= 2 + 0.3
= 2.3 years
Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
Monthly Medicare (1.45%): $16.3125
Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
Total Monthly deductions $262.6875
Trey’s NMI $862.3125
Explanation:
Calculation for What is his monthly taxes
First step is to calculate the Gross monthly income
Using this formula
Gross monthly income=Annual salary/Numbers of months in a year
Let plug in the formula
Gross monthly income=$13,500/12 months
Gross monthly income=$1,125
Therefore the Gross monthly income is :$1,125
Monthly Federal income tax (11.6%): $130.50
($1,125*11.6%)
Monthly Social security (FICA) (6.2%): $69.75
($1,125*6.2%)
Monthly Medicare (1.45%): $16.3125
($1,125*1.45%)
Monthly State Tax (4%): $45
($1,125*4%)
Monthly Local Tax (0.1%): $1.125
($1,125*0.1%)
Total Monthly deductions $262.6875
($130.50+$69.75+$16.3125+$45+$1.125)
Trey’s NMI $862.3125
Trey’s NMI=Gross monthly income-Total Monthly deductions
Trey’s NMI=$1,125-$262.6875
Trey’s NMI=$862.3125
Therefore his monthly taxes are:
Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
Monthly Medicare (1.45%): $16.3125
Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
Total Monthly deductions $262.6875
Trey’s NMI $862.3125
Answer: fall; decrease
Explanation:
People save in order to be able to consume in future. If it is discovered that there will be no fixture, there would be no need to save. The supply of loanable funds would therefore decrease as people stopped saving.
Because there is reduced loanable funds, less investments would be done as these require loanable funds. With less investments being done, the economic output will decrease.
Hi!
To solve this multiply
7.5 x 8 = 60
The answer is C. 60 hours
Hope this helps! :)
