Answer: $25,000
Explanation:
Amount borrowed = $25,000
Corporation interest = 3%($25,000)
= 3/100 × $25,000
= $750
Federal rate = 4%($25,000)
= 4/100 × $25,000
= $1,000
Total debt = $(25,000+750+1,000)
= $26,750
Jody earned $3,500 for the year. In six months, Jody'd earn 1/2 of $3,500 = $1,750
This means that $1,750 of Jody's income will go to Jody's controlled corporation account in six month.
The total inputed amount to be paid by Jody = Jody's total debt - Jody's income in six month
= $26,750 - $1,750
=$25,000
1. A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. If a co-signer is on the loan, if the main party defaults the co-signer becomes responsible for the loan.
2. I could ask family members as a last resort for financing.
3. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 and 2019, the annual exclusion is $15,000.
4. line of credit loan will help protect a business in case of emergency. It is an open loan that the business can draw from when it needs more money, and pay it back. Unlike installment loans, once the principal is paid the line stays open for use in the future without the need to reapply each time.
Answer:
C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.
Explanation:
if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.
In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.
As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.
Answer:
$4,350
Explanation:
Calculation to determine your net profit or loss on this investment
Net profit = (-$0.60 - $42.70 + $52) × 100 × 5
Net profit= $4,350
Therefore your net profit or loss on this investment is $4,350
A) is late recognizing that a recession has begun and conducts expansionary monetary policy.
