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zzz [600]
3 years ago
9

Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the ban

k each year and the property taxes they pay each year. First create a separate worksheet from the amortization schedule. Title this worksheet Analysis. In this worksheet, create a column titled Income starting at $90,000 and increasing at 3% for 20 years. What is their income after 20 years
Business
1 answer:
Margarita [4]3 years ago
4 0

Answer:

Their income after 20 years would be 72,550 dollars.

Explanation:

The income after 20 years can easily de determin by using compounding

formula

Future Value = Present Value (1 + I)^ 20

                      = 90,000 (1 + 0.03)^ 20

                      = 162,550 dollars

Income can be determing by subtracting Pv from Fv i.e

Income = 162,550 - 90,000 = 72,550

Calculation on excel sheet

       A                        B                  C                         D                

1     90,000             1.03            = A1 * 1.03        = C1-A1        

2      = D1                  1.03           = A2 * 1.03       = C2-A2

20    = D19               1.03           = A20 * 1.03      = A20 - C20

* In work sheet colunm D will show income on investment.

You might be interested in
Which organization has the highest market dependence? Group of answer choices a chain of rapid-service oil change shops. a manuf
pashok25 [27]

Answer:

The correct answer is letter "D": company that specializes in making replacement tiles for the space shuttle.

Explanation:

Market-dependent industries are those whose production relies on the manufacturing of another institution. This is a threat for the entity since if the other producers fail, the entity is likely to follow the same path. The situation is even worse when the manufacturing company produces rare or uncommon goods.

Therefore, <em>a firm producing replacement tiles for space shuttles is highly market-dependent since a few organizations worldwide require spare parts for space tiles, which is not a common product traded in the market.</em>

7 0
3 years ago
(a) Explain the quantity theory and<br>(b) how does the theory explains the cause of inflation​
n200080 [17]
The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

It assumes an increase in money supply creates inflation and vice versa.
5 0
3 years ago
Wilton sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Paola Middle School, terms 2/
iogann1982 [59]

Answer:

The $2,700 is the amount which recognized as net accounts receivable on the balance sheet as of November 30

Explanation:

 The computation of net accounts receivable is shown below:

= Selling price of softball equipment - defective merchandise amount  

= $3,000 - $300

= $2,700

The $1,800 is not considered in the computation part because the Wilton company received an order from Douglas high school which is irrelevant for Paola middle school. Neither the discount terms are considered because the company did not receive the amount.

3 0
3 years ago
Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&amp;P 500 will sell at year-end at
Rus_ich [418]

Answer:

a. 9,50%

b. $47.09

Explanation:

a) Discount rate on the stock

Average Risk Premium of Stock = 7.60%

Current risk-free rate = 1.60%

Discount Rate = 7.60% + 1.90%

Discount Rate = 9.50%

b) Current Price = ($41 + $2) / (1 + 9.50%)^1

Current Price = $43 / (1.0950)^1

Current Price = $43 / (1.0950)^1

Current Price = $43 / 0.91324

Current Price = $47.0851035872278

Current Price = $47.09

Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n

6 0
3 years ago
You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on
Paraphin [41]

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

7 0
3 years ago
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