Gerald is penniless, so he decided to borrow some money from his friends and tell them that he will pay them double on the next day. His best friend just gave him P 20, John let him borrow P 50 and Randulf lend him P 100. Determine his total debt.
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Gerald is penniless, so he decided to borrow some money from his friends and tell them that he will pay them double on the next day. His best friend just gave him P 20, John let him borrow P 50 and Randulf lend him P 100. Determine his total debt.
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- Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?that explains why Tim does or does not have enough money to pay $200 each month on his credit card. If he does have enough, give him some advice as to whether or not paying $200 each month on his credit card is a good idea. If he does not have enough, give him some advice about what he should do instead. Assume all of his taxes And expenses are as listed in #1-3, and assume that he is 20 years old and is wanting to retire at age 65. Tim will pay 5,812.5 for federal taxes 2,544.8 is the amount Tim takes home each month. Total monthly expenses= $2,15Larry borrowed $1,000 through a loan shark, two years later he ended uppaying $1,500 to settle his debt. What was the interest rate on his loan?
- Rob asks his good friend Ted to borrow $5,000 and says he will pay it back to him in 6 months with 8% interest, meaning Rob will owe Ted $5,200 if he pays it back at that time. Ted asks Rob to "make" a promissory note payable to Ted stating these terms. Rob does prepare the "note" and signs and gives it to Ted and at the same time Ted gives Rob the $5,000. Ted in need of money unexpectedly, because he loses his job, contacts his buddy Gullible, and asks him if he will buy the note at a discount of $4,800. Gullible accepts and stands to make a nice profit when the note owed by Rob comes due. When Gullible gives Ted the $4,800, Ted writes on the note "Without Recourse" and signs his name and tenders the note to Gullible. Gullible does see Ted write this on the note, but is not sophisticated with regard to legal lingo, and thinks nothing of it. He therefater gets nervous and thinks maybe he should sell the note himself right away. He calls his aunt Saviour who says she will buy the…Van, who is 59, was born on 1 July 1956. He has $1,100,000 in his superannuation fund, consisting of $300,000 in non-concessional contributions. He has decided it is about time to begin receiving his superannuation benefits and wants to take a lump sum to pay off his mortgage, buy a new car and pay some debts. The amount he needs is about $430,000. Whatever remains in superannuation after payment of the lump sum he would like to commence an income stream. Advise Van on how he could receive his superannuation benefits in the most tax-effective way.On September 30, Ashley and Jason started arguing about who is better off. Jason said he wasbetter off because he owned a PlayStation console that he bought last year for $250. He figures that, if needed, he could sell it to a friend for $180. Ashley argued that she was better offbecause she had $1,000 cash in her bank account and a piece of art that she bought two yearsago for $800 but could now probably sell for $1,400. Jason countered that Ashley still owed$250 on a loan and that Jason’s dad promised to buy him a Porsche if he does really well in hisaccounting class. Jason said he had $6,000 cash in his bank account right now because he justreceived a $4,800 student loan. Ashley knows that Jason also owes a tuition installment of $800for this term.Ashley and Jason met again in early November. They asked how each other was doing. Ashleyclaimed that she’d become much more successful than Jason. She had a part-time job, where sheearned $1,500 per month. Jason laughed at Ashley because…
- Amy makes her first $15,000 payment into a conservative savings plan, earning 8% per year into her savings account when she is 28 years old. After the 10th payment, Amy makes no additional payments nor does she withdraw any money from the account. One of Amy's friends, Frank, starts a savings plan that is identical to Amy's when he is 38 years old (Frank's account also earns 8% per year). He continues making $15,000 annual payments until he is 60 years old. If both Amy and Frank retire when they are 60 years old, who will have more money in their savings plan at that time?Juan received an inheritance from his grandfather. Worried of spending the money unproperly, he decided to invest the whole amount at 2% interest so that he can withdraw a stable amount every month for his family’s needs and for other expenses. How much will he be able to withdraw each week for 2 years if his total inheritance is $3,000,000?When Sam was 16, he got an after school job at his parents' Mexican restaurant. His parents told him that if he put some of his earnings into an IRA, they would contribute an equal amount to his IRA. That year, and every year thereafter, he deposited $600 into his IRA. When he turned 21, his parents stopped contributing, but Sam increased his annual deposit to $1,200 and continued depositing that amount annually until he retired at the age of 65. His IRA paid 5.1% interest. Find the future value if this account.
- Rudabeh, 34, and Donovan, 31, want to buy their first home. Their current combined net income is $69 comma 00069,000 and they have two auto loans totaling $29 comma 00029,000. They have saved approximately $14 comma 00014,000 for the purchase of their home and have total assets worth $ 55 comma 000$55,000, which are mostly savings for retirement. Donovan has always been cautious about spending large amounts of money, but Rudabeh really likes the idea of owning their own home although she hasn't expressed her preference to Donovan. They do not have a budget, but they do keep track of their expenses, which amounted to $ 57 comma 000$57,000 last year, including taxes. They pay off all credit card bills on a monthly basis and do not have any other debt or loans outstanding. Other than that, they do not spend a great deal of time tracking their finances. a. What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchase goal? What records…Bradford's automobile insurance policy has a $1,400 deductible, with a $3,800 out-of-pocket limit and a 90/10 copay. This year, he was involved in a car accident, and was billed $10,800 in expenses. How much of this expense will Bradford be expected to pay out of his own pocket?Wade paid 7,000 for an automobile that needed substantial repairs. He worked nights and weekends to restore the car and spent 2,400 on parts for it. He knows that he can sell the car for 13,000, but he is very wealthy and does not need the money. On the other hand, his daughter, who has very little income, needs money to make the down payment on a house. a. Would it matter, after taxes, whether Wade sells the car and gives the money to his daughter or whether he gives the car to his daughter and she sells it for 13,000? Explain. b. Assume that Wade gave the car to his daughter after he had arranged for another person to buy it from his daughter. The daughter then transferred the car to the buyer and received 13,000. Who is taxed on the gain?
