Answer:
$1,443.75
Explanation:
The total cost for paving Sam's portion of the road = $35 per linear foot x 110 front feet = $3,850
If the city is going to pay 25% of the total cost, then it will pay $962.50, that would leave a total of $2,887.50 to be paid between Sam and his front neighbor. So Sam's share = $2,887.50 / 2 = $1,443.75
Answer:
$225,000
Explanation:
Data provided in the question:
Note payable = 10%, $3,000,000
Payment amount = $1,000,000
Now,
Since the first payment is made in the month of October
Therefore,
Duration from October 2018 to October 2019 = 9 months = 
years
Therefore,
Interest payable for 2019 will be = $3,000,000 × 0.10 ×
= $225,000
Answer:
Greg’s capital gain on the apartment = $590,000
Explanation:
Purchase Cost = $100,000
Improvements = $300,000
Total Initial cost = Purchase Cost + Improvements
Total Initial cost = $100,000 + $300,000
Total Initial cost = $400,000
Depreciation for 20 Years = Depreciation per annum * 20
= $2,500 * 20
= $50,000
Net Book value after 20 Years = Initial cost - Depreciation for 20 Years
= $400,000 - $50,000
= $350,000
Capital Gain = Net Sale - Net Book Value
When Net Sale = Sale Price - Commission
= $1,000,000 - $ 60,000
= $940,000
Hence, Capital Gain = Net Sale - Net Book Value
Capital Gain = $940,000 - $350,000
Capital Gain = $590,000
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer:
Option 2 is slightly better.
Explanation:
Giving the following information:
They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today.
To determine which of the options is better, we need to calculate the present value. To do this we will assume an interest rate of 10% per year compounded annually.
PV= FV*(1+i)^n
<u>Option 1:</u>
PV= 85000/1.10 + 85,000/1.10^2= $147,520.66
<u>Option 2</u>:
PV= 20,000 + 74,000/1.10 + 74,000/1.10^2= 148,429.7
Option 2 is slightly better.
