David earned 10 percent on the $200,000 he invested in a special account at his credit union. Interest was paid semi-annually. His effective rate of interest was: Select one: a. 10.55% b. 10.25% c. 10.56% d. 15.75%

Q: Connie made deposits of $2,000 at the beginning of each year for four years. The rate she earned is…

A: Given:

Q: Bryan received a loan of $42,000 from the bank at 3.25% compounded monthly. If she had to repay $350…

A: Given that: Interest rate r = 3.25% per year = 0.2708% per month Period n =3 year= 36 months…

Q: Carla borrowed $1049.00 from the Central Bank at 8.5% per annum calculated on the monthly unpaid…

A: The complete repayment schedule for the loan is shown in the table above. The loan is paid off in 5…

Q: Jim Jones deposited $19,000 in a savings account at 7% interest compounded daily. At the end of 6…

A: The Future Value is calculated with the help of following formula  A = P (1 + r/n) nt A = Future…

Q: Laura deposited $1,100 at the end of every month into an RRSP for 6 years. The interest rate earned…

A: Future Value of Annuity formula will be used to calculate the value of monthly instalments at the…

Q: Blade, Jace, and Ambrynn all invest the same amount in different accounts. Blade invests in an…

A: As per the given information:To determine:APY for each account.

Q: Armita deposits $150 in an account paying a nominal interest rate 9.900% compounded semi- annually.…

A: Interest rate refers to the rate which is charged by the lender from the borrower on the loan amount…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: The annuity refers to the series of systematic and regular repayments or withdrawals from the…

Q: Owen borrowed $28,500 at 9% compounded monthly to buy a car. The loan will be repaid with equal…

A: The loan schedule gives information to the lender and borrower about the loan payments due and the…

Q: Carlos invested $1,800 at the beginning of every 6 months in an RRSP for 11 years. For the first 6…

A: We need to use future value of annuity due formula to calculate value of fund at specified…

Q: Vijay

A: The objective of the question is to find out how much money Ms. Burke invested in each of the two…

Q: ppose that Mark borrowed $27,750 on his car loan, and it is to be repaid in eight equal payments at…

A: Loans are paid by the equal annual payments and these annual payments carry the payment for interest…

Q: A friend of yours borrows $19,500 from the bank at 8% annually to be repaid in 10 equal annual…

A: Accumulated interest paid:Accumulated interest paid is the comprehensive sum of interest accrued and…

Q: CJ borrowed from a bank at 3.34% compounded semi-ann $1,049 at the end of every six months for 7…

A: The periodic payments are paid to pay the loan and these periodic payments carry the payment for…

Q: Bianca invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 8…

A: Future value of money is the amount that was being deposited and amount of compounded interest…

Q: Stephen deposited $1,200 at the end of every month into an RRSP for 8 years. The interest rate…

A: Amount deposited at the end of every month is $1200 Time period is 8 years Interest rate for first…

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: Teffan borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in three…

A: The loan can be paid in installments. The installment includes both the interest and the principal…

Q: nifer deposited $54,000 at Bank of America at 20% interest compounded quarterly. a) What is the…

A: In this we need to find out the effective annual rate.

Q: Lauren deposited $1,200 at the end of every month into an RRSP for 7 years. The interest rate earned…

A: Deposit = 1200 per month END OF PERIOD DEPOSITS Time Period = 7 Years  × 12 = 84 Months   Semi…

Q: K Ms. Burke invested $30,000 in two accounts, one yielding 6% interest and the other yielding 9%. If…

A: Amount invested refers to an amount that is being invested by the investors for the purpose of…

Q: Gabrielle received a loan at 6% p.a. simple interest for 8 months. If he was charged an interest of…

A: Interest rate = 6%Number of periods = 8 monthsInterest received = $272.00

Q: Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the…

A: Annuity = a = $1300 Time = t = 26 years Interest rate = r = 8%

Q: Nathan was charged interest of $72 for a loan amount of $2,000 that he borrowed for 150 days. What…

A: Principal amount borrowed(P)= $2,000Number of days(t)= 150Simple interest charged = $72let the…

Q: Luis deposited $900 at the end of every month into an RRSP for 9 years. The interest rate earned was…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Julia deposited $900 at the end of every month into an RRSP for 7 years. The interest rate earned…

A: Compound interest is a financial concept in which the interest generated on an initial sum of money,…

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.