Answer:
The prize is worth $111,258.73.
Explanation:
Giving the following information:
Cf= $1,000 a month
Interest rate= 0.07/12= 0.005833
Number of months= 15*12= 180
First, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {1,000*[(1.005833^180) - 1]} / 0.005833
FV= $316,951.28
Now, the present value:
PV= FV/(1+i)^n
PV= 316,951.28/(1.005833^180)
PV= $111,258.73
Answer:
a. "Not deductible"
b. "Not deductible"
c. "Not deductible"
d. "Deductible"
e. "Not deductible"
f. "Not deductible"
Explanation:
Expenses to be deductible ( especially for tax purposes) must pass the WREN test where;
W stands for wholly
R stands for reasonably
E stands for exclusively
N stands for necessarily
Looking at the expenses incurred and paid for by Doug during the year, the $50 ticket for running a red light is not a necessary expense as an adherence to traffic signs would have prevented such an expense. it can also be said that the expense was not reasonably incurred. This also applies to options b and c. Parking at the handicapped space is completely avoidable (necessity test) and as such the $100 would not have been incurred. While the $200 paid to the attorney for representation in court is an offshoot of options a and b. This would not have been incurred if the first two incidences were avoided.
Option c is deductible as the $500 paid is wholly for the business, reasonable, exclusive and necessary. As such, the expense is deductible or allowable. Options e and f are not related to business and are incurred on personal grounds which are avoidable hence, these expenses would not pass the WREN test.
Answer:
The opportunity cost is the cost that is generated by selecting some other alternative. The opportunity cost indicates the value or activity that is foregone to do something else.
In our case, me and my friend decided to go on a concert and concert ticket price is $100.
There are other three alternatives available for me and my friend other than concert:
(i) purchase a textbook worth of $100.
(ii) meal at a highly rated local restaurant
(iii) internet movie downloads
It was given that my next best alternative to the concert is internet movie downloads and my friend's next best alternative to the concert is meal at a highly rated local restaurant.
Hence,
The opportunity cost for me and my friend of the concert tickets that we purchased are internet movie downloads and meal at a highly rated local restaurant, respectively.
Answer:
$100,000
Explanation:
Cash flow = $10,000
Interest rate = 3%
Growth = -7%
Value of this mining operation = Cash / (Rate - Growth)
Value of this mining operation = $10,000 / (3% -(-7%)
Value of this mining operation = $10,000 / 10%
Value of this mining operation = $10,000 / 0.10
Value of this mining operation = $100,000
Lenders who foreclose on FHA-insured loans are compensated with the outstanding sum plus expenses.
<h3>What is a loan with FHA insurance?</h3>
An FHA-approved lender offers a mortgage loan that is guaranteed by mortgage insurance from the US Federal Housing Administration. Lenders are safeguarded from losses through FHA mortgage insurance. A government-backed mortgage that is insured by the Federal Housing
Administration is known as an FHA loan. FHA home loans are particularly well-liked by first-time homeowners since they have lower minimum credit score requirements and down payments than many conventional loans. Lenders are safeguarded from losses through FHA mortgage insurance.
If a property owner defaults on their mortgage, we'll pay a claim to the lender for the unpaid principal sum. Lenders are able to provide more mortgages to homebuyers because they are taking on less risk.
To learn more about FHA-insured loan, refer to:
brainly.com/question/24168197
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