Answer:
Stated Rate No. of Times Compounded Effective Rate (EAR) %
11.85% Semiannually 12.2 %
12.37% Monthly 13.1%
110.27% Weekly 10.8%
13.54% Infinite 14.5%
Explanation:
EAR = ( 1 + ( APR / m )^m)-1
Semiannually
m = 12 / 6 = 2
0.1220 = ( ( 1 + ( APR / 2 ) )^2) - 1
0.1220 + 1 = (1 + ( APR / 2 ) )^2
1.1220 = ( 1 + ( APR / 2 ) )^2
= 
1.059 = 1 + ( APR / 2 )
1.059 - 1 = APR / 2
0.059 x 2 = APR
APR = 0.1185 = 11.85%
Monthly
m = 12 / 1 = 12
0.1310 = ( ( 1 + ( APR / 12 ) )^12) - 1
0.1310 + 1 = (1 + ( APR / 12 ) )^12
1.1310 = ( 1 + ( APR / 12 ) )^12
APR = 12.37%
Weekly
m = 52
0.1080 = ( ( 1 + ( APR / 52 ) )^52) - 1
0.1080 + 1 = (1 + ( APR / 52 ) )^52
1.1080 = ( 1 + ( APR / 52 ) )^52
APR = 10.27%
Infinite
m = 20,000
0.1450 = ( ( 1 + ( APR / 12 ) )^12) - 1
0.1450 + 1 = (1 + ( APR / 12 ) )^12
1.1450 = ( 1 + ( APR / 20,000 ) )^20,000
APR = 13.54%
Answer
1. D
2. C
3. A
Explanation
1.
To identify the return below is the formula to calculate the Return
Net Return = Current Worth - Total of Purchase
Net Return = $260,000 - $250,000
Net Return = $10,000
Answer 1 = D
2.
below is the formula to calculate Rate of Return
Rate of Return = ( Current Value - Original Value)/Original Value
Rate of Return = ($260,000-$250,000)/$260,000
Rate of Return =
.
Rate of Return = 3.86%
if round off it we found
Rate of Return = 4%
Answer 2 = C
3.
first we need to calculate the what is the value of after the inflation 2.5%
$6,500
current worth - inflation amount
$260,000 - $6,500
$253,500
now calculate the rate of return
($253,500 - $250,000)/($253,000)
$3,500/$253,000
1.38%
if we round off 1.38% then we found 1.5%
Answer 3 is A 1.5%
False
Duress is used to enforce a contract, not for the rescission of a contract.
Meghann carlson QBI deduction is = $548,623
Solution:
The qualifying business income exclusion (QBI) referred to as Section 199A requires operators to receive up to 20 percent of their eligible business earnings for a tax deduction. It was implemented in the context of the Tax Cuts and Jobs Act 2017.
Since gross deduction for QBI deduction is set at 20% of lower of QBI ($129,100 ) or Taxable income($103,280)
So the lower is taxable income ,
i.e $103,280 × 20% ( 103,280 × 20÷ 100)
= 20,656 ( 206.56 )
= $548,623
