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navik [9.2K]
4 years ago
15

The following 12%, $1,000 notes were issued on December 1. Which of the following is the correct method of calculation for the i

nterest accrued as of December 31 of the same year on each of the notes described? Select one:
A. Interest on a 4-month note is calculated as: $1,000 × 12% × 1/12.
B. Interest on a 3-month note is calculated as: $1,000 × 12% × 1/3.
C. Interest on a 2-year note is calculated as: $1,000 × 12% × 1/24.
D. Interest on a 4-month note is calculated as: $1,000 × 12% × 1/4.
Business
1 answer:
Aliun [14]4 years ago
5 0

Answer:

A) Interest on a 4-month note is calculated as: $1,000 × 12% × 1/12.

Explanation:

Each note is worth $1,000

Each note carries a 12% interest rate

Only one month has passed since the notes were issues, so the time = 1/12

Therefore the interest accrued from December 1 to December 31 = note value x note's interest x time = $1,000 x 12% x 1/12 = $10

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In need of extra​ cash, Troy and Lily decide to withdraw ​$2 comma 100 from their traditional IRA. They are both 40 years old. T
krek1111 [17]

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

8 0
3 years ago
Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh
Tems11 [23]

Answer:

Payback period = 3 years

Explanation:

<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>

<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:  </em>

<em>Payback period =The initial invest /Net cash inflow per year </em>

The cash inflow = Net operating income + Depreciation

                          = 105, 000 + 45,000 = 150,000

Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.

Payback period = 450,000/150,000

                          = 3 years

Payback period = 3 years

5 0
4 years ago
Rita Rodriquez obtained a 24 month
tatiyna

Answer:

True

Explanation:

snce rita times 4 to the power of rodriquez is 24 then this is proven to be true

3 0
3 years ago
A bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to
Kamila [148]

Answer:

Who am I trying to reach?

Explanation:

Targeting and segmentation is the process by which a company focuses marketing activities regarding a particular product to a defined customer profile.

Certain criteria like income, age, location, culture and so on can be used as a basis for segmentation.

Basically the question that segmentation and targeting answers is - Who am I trying to reach?

In the given scenario the bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment.

So they answered who they want to sell to.

8 0
3 years ago
You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose
sergiy2304 [10]
Took me a bit to understand what this is. I have no business sense at all.

Expected Rate of Return = 30%*5% + 9%*75% - 33% * (100 - 75 -5)%
Expected Rate of Return = 0.015 + 0.0675 - 33%*20%
Expected Rate of Return = 0.015 + 0.0675 - 0.066
Expected Rate of Return = 0.0165

This then is expressed as a %
0.0165 = 1.65 % Sounds like you are buying a US short term treasury.
If anyone else answers, take their answer.
 
3 0
3 years ago
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