Sue is 10 years old and would like to make a down payment on a vehicle when she is 16 years old. She currently has $2,000. What
rate of return must Sue receive for her investment to double by the time she is 16?
1 answer:
Answer:
The rate of return must be 12.25% per year
Explanation:
Find the calculation attached. The aim is to increase the initial capital taking into acount that for each year the capital will be increased by the interest paid . Therefore the capital + interest paid will be the new balance from which the 12,25% will be applied again for the next 6 years.
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Answer:
Follows are the solution to the given points:
Explanation:
In point a:
It must allocate for both the taxicab and
for the rest of the license, the client list, and the company name registered.
Its cost of intangible material could be amortized for 180 months starting in April. is her amortization deduction.
She could also use Section 179 to decrease her taxable money to but include her deduction.
Her taxable annual income is .
In point b:
They must allocate for the taxi and
for their licenses, the customer list as well as the business by interacting with people register. Its cost of the material could be depreciated for 180 months, starting in April.
is her amortization deduction.
The taxable income here
Section 179 could be requested if another income is earned on the tax return (such as W-2 wages).
As all Section 179 is unpaid with other earned income, it is carried forward into the next year.