Answer:
Annual depreciation is calculated by dividing the cost of an asset over its useful life.
Explanation:
For example, if a company is looking to invest in new machinery which costs USD 300,000 and the machinery is expected to have a useful life of 10 years with no scap/salvage value, then the annual depreciation would be computed as:
USD 300,000/10 = USD 30,000 depreciation expense per year.
Answer:
Mary can deduct $1,300 in year 1 for her points paid.
Explanation:
a) Data and Calculations:
April 1, Amount borrowed by Mary to refinance the original mortgage on her principal residence = $130,000
Payment of 1 points to reduce Mary's interest rate from 7% to 6% amounts to 1% of $130,000 = $1,300.
b) Mary paying 1 points is beneficial to her since her interest cost is reduced from 7% to 6%. This implies that her total finance cost at the end of the 30-year period will be reduced.
Answer:
SMART goal
Explanation:
SMART is an acronym that is used to guide businesses in the process of setting it's goals.
The acronym stands for S- specific, does the goal have particular purpose.
M- measureable, is the goal something that can be measured.
A- attainable, is it realistic to achieve.
R- relevant
T- time bound, has a set timeline.
In this instance Brenda is using SMART goal technique to evaluate the statement made by Paula. She wants to find out if her goal is specific.
Answer:
A = $3136.51875
Explanation:
Given that :
The principal = $3,000.00
Rate = 9%
Time = 6 months
Since the amount is compounded quarterly;
r = 9/4 = 2.25 %
t = 6 months = 2 quarter
Using the formula:
A = P(1+r/100)^t
A = 3000.00(1+ 2.25/100)^2
A = 3000.00( 1+ 0.0225)^2
A = 3000.00 (1.0225)^2
A = 3000.00 (1.04550625)
A = $3136.51875