There are some excellent free personal finance apps available: Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are your proceeds? (Round your answer to the nearest cent.) Proceeds

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: how much is the goodwill?

A: Goodwill is defined as the difference between the purchase price and the fair value of the defined…

Q: What is the cost of capital rate in the question?

A: Cost of capital is the WACC of the project. WACC is equal to weighted average cost of capital. WACC…

Q: What is the notion of capitalization effects and how does it work

A: The notion of capitalization effects and how does it work will be explained:

Q: What is an annuity?

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: What types of investments generate interest income and how is interest income reported?

A: Ans. Interest income is the earnings received in return of the amount deposited as investments.

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: What is a donated capital and how it is accounted?

A: Donated capital is defined as assets given as gift to the entity.

Q: capitalized?

A: In accounting, the term "capitalized expenditures" refers to expenses that are recorded as assets on…

Q: what types of investments generate interest income and how is interest income reported?

A: When a person makes an investment then that person will earn a return or an income on that…

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: rest that is converted into principal and thus, also earns interest?

A: Step 1   Simple interest is a fixed proportion of the principal amount borrowed or lent that is paid…

Q: How is the present value of a lump sum determined?

A: Definition:   Present value: It refers to the current value of the whole amount that will be…

Q: How can we determine ordinary gains and capital gains?

A: Answer: In the course of normal business, an ordinary gain is income. The gain or loss of foreign…

Q: Why is share in a considered a is perpetuit

A: In finance a perpetuity refers to that financial asset or that financial security that goes on…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: When does the Capital expenditures occur?

A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…

Q: What should be done to find the equivalent present worth of the actual dollar amount?

A: Present value is the concept of discounting future value to bring it to today’s worth.

Q: What does Capital Recovery (Ownership) Cost?

A: Capital recovery cost It is an equivalent annual amount each year an asset must earn to recover…

Q: What is capital assets?

A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…

Q: Describe the process of Calculating Present Worth?

A: Step-1: The initial invested amount should be ascertained and the initial investment is the sum…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: What is "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss

A: Constructive receipt doctrine: According to constructive receipt doctrine policy, the taxpayer…

Q: What are the factor payments for land, labor, and capital?

A: The question is based on the concept of factor payment ,in financial economics factors are consider…

Q: What is an annuity?

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: How can capital gains and losses be offset against each other?

A: Capital gains and losses refer to the financial gains or losses that result from the sale or…

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.