Answer: $5750 ; $6000
Explanation:
The amount of their deduction for interest paid on qualified residence acquisition debt will be the interest paid on the first mortgage of their home which is: = $5750
The amount of the deduction paid on qualified home equity debt will be calculated as:
= (100000/150000) × 9000
= $6000
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Answer:
Answer for the question :
Tom sold mutual fund shares, which he had owned for 3 years, so that he could use the proceeds to return to college. Tom is in the 12% marginal tax bracket, and his capital gain from the sale was $12,000. How much tax does Tom owe on the gain?
is explained in the attachment.
Explanation:
Answer:
When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%
Explanation:
Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).
Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.
So, everything should look like this.
Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%
Best of luck.
Answer:
6.38%
Explanation:
The computation of the stock expected constant growth rate is shown below:
But before that first we have to find out the dividend for each year by considering the growth rate
Dividend for year 1 = $1 × (1 + 0.30) = $1.30
Dividend for year 2 = $1 × (1 + 0.30)^2 = $1.69
Dividend for year 3 = $1 × (1 + 0.30)^3 = $2.197
Dividend for year 4 = $1 × (1 + 0.30)^4 = $2.8561
and, the selling price of the stock is $40
So,
$1.30 × 0.8929 + $1.69 × 0.7972 + $2.197 × 0.7118 + $2.8561 × 0.6355) + [$2.8561 × (1 +X%) ÷ 12% - X%)] = $40
After solving this
The X is 6.38%
And, the discount rate is come from
= 1 ÷ (1 + interest rate)^number of years
Like 0.8929 is come from
= 1 ÷ (1 + 0.12)^1