Answer:
C. The original amount invested and previously paid interest payments
Explanation:
Compound interest is the interest calculations that take into account the principal amount and the interest payment summed up to calculate the subsequent interest payment. For example in year 0 there was an investment of 1000 and 10% interest payable annually,
Year 0 = 1000
Year 1 = 1000 + 100 (here hundred is the interest payment)
Year 2 = 1000 + 100 + 110 (110 is the compounded interest on 1000 +100 from previous periods)
Hope that helps.
More advantages when domestic monetary and political institutions are not conducive to good monetary policy making.
Answer:
Which party to the exchange must pay boot to make the exchange work?
- Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.
How much boot must be paid?
- $90,000 - $77,500 = $12,500
Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
- Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500
Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
- Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
Answer:
Capital One's current break-even point in terms of number of units for the month is 1500 units
Explanation:
Break-even point in terms of number of units is the sales units required such that the company makes neither gain nor loss
break-even point in sales units=fixed costs/contribution margin per unit
fixed costs is $7,200
contribution margin=sales price per unit-variable cost per unit
sales price per unit is $8
variable cost per unit is $3.20
contribution margin=$8-$3.20=$4.80
break-even point=$7,200/$4.80=1,500 units
The correct option is A ,1500 units
