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jek_recluse [69]
3 years ago
9

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

al buying cost
Business
1 answer:
Readme [11.4K]3 years ago
8 0

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

The following calculations were made:

Interest lost on security deposit

= Security deposit × 7%

= $650 × 0.07 = $45.5

Interest lost on down payment and closing cost

= Down payment × 7%

= $4,500 × 0.07 = $315

Tax savings for mortgage interest =

Interest × 28%

$9,575 × 0.28 = $2,681

Tax savings for property taxes =

= Property taxes × 28%

$1,780 × 0.28 = $498

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Read 2 more answers
Inventory records for Marvin Company revealed the following:
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Answer: $14371.6

Explanation:

Given that,

According to FIFO method,

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Cost of Beginning inventory = 990 × $7.25

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on Mar. 10

Cost of Purchase = 570 × $7.73

                             = $4,406.1

Remaining purchases = Total units sold - Beginning inventory - number of units purchase on mar 10

                                    = 1,900 - 990 - 570

                                    = 340 units

Cost of remaining purchases = 340 units × $8.2

                                                 = $2,788

Total cost of goods sold = Cost of Beginning inventory + Cost of Purchase +  Cost of remaining purchases

                                         = $7177.5 + $4,406.1 + $2,788

                                         = $14371.6

8 0
4 years ago
Distinguish between responsibilities of the FTC and those of the SEC. prohibits deceptive practices provides information about c
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Answer:

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3 years ago
Discuss why South Africa as a country has a scarcity of skilled workers, and how this can be changed more especially in terms of
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South Africa, as a country still experiences a scarcity of skilled workers.  This should not be, given the country's population size.

<h3>What is the scarcity of skilled workers?</h3>

The scarcity of skilled workers means that South African companies cannot attract the manpower they need to power the South African industry and economy.

However, this scarcity can become a thing of the past if many more South African companies can start investing in the education sector by giving out scholarships, grants, and endowing academic chairs in the universities.

This was how the economy of the United States was enabled to flourish until today.  South African companies can emulate their footsteps.

Thus, South Africa, given its enormous population, has no business experiencing a scarcity of skilled workers.

Learn more about the scarcity of skilled workers at brainly.com/question/1787954

5 0
2 years ago
This economy cannot currently produce 70 washers and 70 dryers because a. it is not using all of its resources. b. it is not usi
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Answer:

c. it does not have the resources and technology to produce that level of output

Explanation:

The complete question comes with the attached figure 2 which shows a downwards sloping PPC - Production possibilities curve. 70 washers and 70 dryers display a point outside the PPC curve.

  • All points outside the PPC curve signify that there are scarcity of resources to reach that level of production
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  • All points on the PPC curve signify that production equals efficient allocation of resources

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3 years ago
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