Answer: a. Have his mom co-sign for a credit card this year, and then Carson pays all of bills on-time and in full every month
Explanation:
Credit scores show how trustworthy a person is when it comes to paying back their debt and so there is no better way to build this score than to incur some debt and pay it back on time.
This is why credit cards are the most convenient way to increase credit scores. Seeing as Carson most probably has no credit history, it would be best if he co-signed on a credit card with his mom and then paid every bill o time and in full.
This would increase his credit score enough by the time he graduates.
Answer:
Emergency contacts must be someone other than a parent/guardian. If you submit a change in ParentVUE to add yourself or the child’s other parent/guardian as an emergency contact, it will be denied by school staff. Schools will always attempt to contact the parents/guardians first and will call emergency contacts only when parents/guardians are not available
Answer:
The building is valued at $328,000 for the owner.
Explanation:
We calcualte the value of the building using the perpetuity formula:
C/r = Value
Where:
C = annual income generate for the building
<u>expected rent revenue: </u> revenue x (1 - vacancy)
80,000 x (1 - 0.06) = 75,200
expenses per year <u> (26,000) </u>
<em>income per year: 49,200</em>
<em />
rate of return 15% = 15/100 = 0.15
C/r = Value
49,200 / 0.15 = <em>Value = 328,000</em>
What? I don’t understand sorry
Answer:
5.38% and 5.1%
Explanation:
In this question, we are asked to calculate the after tax return to the corporation and the after tax return to the investor.
What is meant by after tax return is simply the profit made after we subtract the amount of taxes. It is simply revenue less the amount of tax paid.
We calculate the values as follows:
For the corporation;
The after tax return can be calculated by the following mathematical expression;
After tax return to Corporation = 0.06 - (0.06 * 0.3) * 0.34 = 0.0538 = 5.38/100 which is same as 5.38%.
After tax return to the individual investor = 0.06(1-0.15) = 0.06 * 0.85 = 0.051 or just 5.1%
