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3 years ago

When interested rates are high cost less money to borrow money true or false

Business

1 answer:

Andrei [34K]3 years ago

7 0

Answer:

That statements is false

Explanation:

When you borrow money, interest represent the additional amount that you need to give back to the creditor. For example let's say that you borrow $1,000 with 10% interest rate per year. After one year, you need to pay back the loan with additional $100 ($1,000 x 10%) for the creditor.

This means that when the interest rate is high, it will cost you more to borrow money.

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Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square f

jekas [21]

Answer:

a) $7,400

b)$60,000

Explanation:

First, we need to complete the question

a) What is Rita's home office deduction for the current year?

b) What is Rita's AGI for the year?

Solution

a) Rita's Home Office Deduction for the Current Year

Description Amount ($)

Gross Income 13,000

Subtract: Her Business Expenses (5,600)

The balance 7,400

Subtract: Expenses under 1st Tier (6,700)

(Interest 5,100 + taxes 1,600)

Balance 700

Subtract: Expenses unde 2nd Tier (700)

($800 Operating Expernses before limit)

Balance 0

Subtract: Expenses under 3rd Tier (0)

1,600 Depreciation before limit

<u>Net income from Rita's Business 0</u>

The Deduction allowed Rita is $7,400 a totla of the home office expenses and the home operating expenses

Note that there was no expense subtracted for the Tier 3 expenses this is because Rita's income had reduced to $0 and there was nothing to subtract from

B) What is Rita's AGI for the year?

The AGI is the Rita's reported AGI of $60,000 + $0 which is the net calculated income from her business. So her AGI remains $60,000.

6 0

3 years ago

1. The Herfindahl index: Suppose that three firms make up the entire bicycle manufacturing industry. One has a 40% market share,

alukav5142 [94]

Answer:

3400, Rise, C

Explanation:

1. Since there are just 3 firms and two already has a sum total of 70% (40+30), the third firm will have a market share of 30%

HHI= $40^{2}+ 30^{2}+30^{2}\\$

HHI= 1600+900+900

HHI= 3400

2. Abe's Bikes with 30% leaves the market, if the two firms were to share Abe's market share equally (15+15), it will leave Firm A with 55% (40+15) and Firm B with (30+15) 45%

Therefore,

HHI= $55^{2}+45^{2}$

HHI=3025+2025

HHI= 5050

A rise in HHI

3. C

An index of 10,000 corresponds to a monopoly firm with 100% market share.

3 0

3 years ago

Which of the following rewards accrues to the factor of production called<br>"capital"

siniylev [52]

Answer:

As factors of production, the reward for land is rent, capital is interest, labour is wages and salaries and entrepreneur is profit.

6 0

3 years ago

Land used for raising crops or livestock is generally called a

lozanna [386]

Answer:

A tract of land used for raising crops or livestockcan be called a field or a farm.

8 0

3 years ago

Read 2 more answers

7. Allowance, a paycheck, gifts, and gains from an investment are examples of

Finger [1]

Answer:a

Explanation:

8 0

4 years ago