Antonio would like to replace his gold clubs with a custom-measure set. A local sporting goods megastore is advertising custom clubs for $800, including a new bag. In-store financing is available at 2 percent, or he can choose not to renew his $500 certificate of deposit (CD), which just matured. The advertised CD renewal rate is r percent. Antonio knows the in-store financing costs will not affect his taxes, but he knows he’ll pay taxes (25% federal and 5.75% state taxes) on the CD interest earnings. Should he cash in the CD or use the in-store financing? Why?

Q: a wants to buy a home and is applying for a conventional mortgage loan. Her gross monthly income is…

A: Maximum monthly mortgages depend on the monthly expenses and other income.

Q: Jan Guerra lends $9000 to her second cousin using a 180-day 10% simple interest note that was signed…

A: The note can be long-term or short-term. The notes issues for less than a year are called short-term…

Q: Baghiben

A: The objective of this question is to find the optimal rent that the owner should charge to maximize…

Q: George buys a car every 6 years for ₱18,000. He trades in his current car to count as the 20%…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: out-of-pocket costs

A: Insurance refers to a process of managing risk. It is represented by a policy, in which a person…

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A: In add on method we simply add interest for given period and add to that with principal amount.

Q: James, a 54-year-old professor, is subject to a 28% marginal tax rate. He has a family emergency and…

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Q: Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000…

A: Given information, Plan to borrow from bank = $300,000  Savings = $10,000  Security for loan = house…

Q: You are the owner of a small hardware store, and you are considering opening a gardening store in a…

A: To calculate the Net Present Value (NPV) of opening the bakery, we need to discount the cash flows…

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Q: To travel to his new job, Hassan is shopping for a new vehicle, and has noticed that many vehicle…

A: Loan is an agreement between two persons as lender (who gives money) and borrower (who takes money)…

Q: Camila Torres wants to buy a new high-end audio system for her car. The system is being sold by two…

A: The APR of a loan refers to the interest rate that the borrower pays on the amount that has been…

Q: Nikulbhai

A: The objective of this question is to find the optimal rent that the owner should charge to maximize…

Q: Freddy runs a business selling clocks. He buys 457 clocks for $44 each  (including GST) and sells…

A: solution : GST rate in Australia       = 10% GST paid on purchase which can be claimed as GST credit…

Q: Ahmed is considering his plans for the coming weekend. He is currently working as a marketing…

A: Incremental cost = Overtime bonus - savings in camping costs = 2500 - 1000 = $1500

Q: analyse this case based on the ethical perspective and virtue theory.

A: Analysis of a practical case on the basis of ethical perspective and virtue theory is presented…

Q: Dimi wants to start up his own business. Unfortunately, he doesn’t have a lot of money. That’s why…

A: Future value: The future value is the sum of principle and interest expense, it is the amount that…

Q: Finn loses control and skids on ice, running into a parked car and causing $3,635 damage to the…

A: A personal auto policy (PAP) is an insurance policy that provides coverage for individuals and their…

Q: Zachary Lee has a personal automobile policy (PAP) with coverage of $50,000/$100,000 for bodily…

A: A.) Insurance coverage for the given situation Damage to unoccupied car= $2645 Damage to his own…

Q: The effective interest rate to the nearest percent for the financing arrangement for the five annual…

A: The effective rate of interest, also known as the effective annual rate (EAR) or annual equivalent…

Q: Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that…

A: Promissory note (PN) is one of the source to arrange the funds for short period and it can be…

Q: John Long has just learned he has won a $508,300 prize in the lottery. The lottery has given him two…

A: The present value of money refers to the current worth of a future sum of money, taking into account…

Q: Ira Schwab wins the lottery and decides to take the one lump sum of$500,000 minus taxes. Ira…

A: The calculation is: Rule 72 tells how much time an investment will take to make the amount double.

Q: .Link wants to make $100,000 after tax on his new venture into selling pizza-on-a-stick, using a…

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A: LTV that is the loan to value ratio shows that how much can give the loan against property and is…

Q: a)- Calculate the current annual total inventory holding cost and annual total ordering cost b)-…

A: Hey there since you have posted multiple questions, we can answer only first three questions, kindly…

Q: James decided to work in Baie-James in northern Quebec for a few years. He wanted to earn some big…

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Q: Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that…

A: If Deja takes 90 days same as cash and pays within 90 days then her payoff will be…

Q: Antonio would like to replace his golf clubs with a​ custom-measured set. A local sporting goods…

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Q: Sam bought a ring for $2,000 from Zales. He must pay at 6% sales tax and 9% excise tax. Since the…

A: Purchase price refers to the final amount that is being paid by the purchaser for buying any goods…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.