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andrey2020 [161]
3 years ago
13

Al's obtained a discount loan of $68,500 today that requires a repayment of $93,228, 4 years from today. What is the APR

Business
1 answer:
saw5 [17]3 years ago
4 0

Answer:

8%

Explanation:

To find the answer, you have to use the formula to calculate the rate of interest:

r=(FV/PV)^1/n-1, where

r= rate of interest

FV= future value=$93,228

PV= present value=$68,500

n= number of periods of time=4 years

Now, you can replace the values in the formula:

r=(93,228/68,500)^1/4-1

r=1.08-1

r=0.08→8%

According to this, the APR is 8%.

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4 0
2 years ago
Keiko sells a piece of equipment used in her business for $14,853 on August 10, 2019. The equipment was purchased on January 4,
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Answer:

as per Section 1231 , gain = $2,004

as per Section 1245 here ordinary income = $3,855

Explanation:

given data

Sale value = $14,853

Original cost = $12,849

Depreciation = $3,855

solution

we know that by provisions when sale value is more than original cost

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and that gain up to depreciation amount will be treated as ordinary income under the section 1245

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