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liq [111]
3 years ago
14

The average capital investments for 2006 were:

Business
1 answer:
iogann1982 [59]3 years ago
7 0

Answer:

A)$15,000

Explanation:

jones   100,000

king    200,000

lane <u>   300,000  </u>

Total   600,000

Assuming profit are distributed based on capital investment, jones will receive:

100,000/600,000 = 1/6 of the profit

proft x jones ratio = allocate income to Jones

90,000 x 1/6 = 15,000

This will be the amount of profit attributable to Jones.

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Assume an after-tax savings interest rate of 7 percent and a tax rate of 28 percent. (a) Calculate the total rental cost and tot
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Complete Question

Annual rent $ 7,380

Insurance 145

Security deposit 650

Annual mortgage payments $9,800 ($9,575 is interest)

Property taxes 1,780

Insurance/maintenance 1,050

Down payment/closing costs 4,500 Growth in equity 225

Estimated annual appreciation 1,700

Assume an after-tax savings interest rate of 7 percent and a tax rate of 28 percent.

(a) Calculate the total rental cost and total buying cost.

Answer:

Explanation:

(a)Rental Costs

Buying Costs $7,380

Rent $9,800

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Interest lost on security deposit

= Security deposit × 7%

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Interest lost on down payment and closing cost

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= $4,500 × 0.07 = $315

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