A- What is the finance charge on this loan? $50 + $5 = $55 B- Dave borrowed $500 on January 1, 2006 & paid it all back at once on Dec 31, 2006. What was the APR? $55 on $500 or 11% APR C- If Dave paid the $500 in 12 equal monthly payments, what is the APR? 20.3% 4.
Therefore, he can borrow an additional $70,000 ($120,000 - $50,000). 2. Louise McIntyre’s monthly gross income is $2,000. Her employer withholds $400 in federal, state, and local income taxes and $160 in Social Security taxes per month. Louise contributes $80 per month for her IRA.
The average cost of those same motor vehicles is now $20,000. What was the rate of increase for this item between the two time periods? Answer: Using an increment of 15 years; PV * FVF or, PV (1 + i)^n or, PV (1.0347)^15 or, $12,000 * 1.6681 = $20,017.20; Alternatively, PV (1.0346)^15 or, $12,000 * 1.6657 = $19,988.40; So, we can see the rate of increase was between 3.46% and 3.47% each year for 15 years. 4. A family spends $28,000 a year for living expenses.
The difference resulted from $60,000 of nondeductible premiums on Ajax's officers' life insurance and $40,000 of rental income received in advance. Rental income is taxable when received. Ajax's effective tax rate is 30%. In its Year 2 income statement, what amount should Ajax report as income tax expense-current portion? 5.
This equates to about 1700 people. Fees. Business will charge 5% of refunds up to $2500 and 10% of refunds over $2500. If there is no refund received, I will charge $40 per hour, with an average time of 2 hours per filing. Calculating Revenue.
So current stock price will be these amounts discounted back to the present at the 0.12 rate of return. 1.57325/1.12 +1.5968/1.12^2 +43.11/1.12^2= 37.05 4. (TCO G) The Chadmark Corporation's budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount. The remaining 60% pay in the month following the sale and don't receive a discount.
On January 1, 2010, Roberto Company adopts a compensatory stock option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%. However, at the end of 2011, the company estimates that the employee turnover will be 5% a year for the entire service period. The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)
Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment $800,000 $650,000 Annual Net Income $50,000 45,000 Annual Cash Inflow $220,000 $200,000 Salvage Value $0 $0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments.
a. APR is 15%; the actual interest rate is 16.08% b. APR is 16.08%; the actual interest rate is 15% c. APR is 18%;the actual interest rate is 19.56% d. APR is 19.56%; the actual interest rate is18% 2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT
3313 Review Questions 1. During the first quarter of 2009, Tech Co. had income before taxes of $200,000, and its effective income tax rate was 15%. Tech’s 2008 effective income tax rate was 15%. Tech’s 2008 effective annual income tax rate was 30%, but Tech expects its 2009 effective annual income tax rate to be 25%. In its first quarter interim income statement, what amount of income tax expense should Tech report?