Answered: 7.) Mr. Almagro made a money market…

7.) Mr. Almagro made a money market placement of P1,000,000 for 30 days at 7.5% per year. If withholding tax is 20%, what is the net interest that Mr. Almagro will receive at the end of the month?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 63P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

7.) Mr. Almagro made a money market placement of P1,000,000 for 30 days at 7.5% per year. If
withholding tax is 20%, what is the net interest that Mr. Almagro will receive at the end of the
month?

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