Answer: All of these choices are correct.
Explanation:
Acquisition cost is the total amount of money incurred in purchasing an asset. The acquisition cost should include all the expenses that are incurred such as:
• installation costs
• transportation costs
• testing costs prior to placing the equipment into production
Therefore, the correct option is "All of the above".
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Please use the high-low method to calculate the variable cost per inspection.
Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
To calculate the variable cost under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of $100,000 and had the following capital transactions to report on their income tax return: Carryover of capital losses from year 13$200,000 Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 1420,000 Gain on the sale of stock purchased 5 years ago and sold on March 14, year 1415,000 Gain on the sale of their personal residence (all qualifications have been met for the maximum allowable gain exclusion)675,000 Loss on the sale of their personal automobile10,000 Gain on the sale of their personal furniture5,000 Loss on the sale of investment property (land only)150,000 What is the amount of capital loss carryover to year 15
Answer:
The amount of capital loss carryover to year 15 is 152,000
Explanation:
The working is attached with the answer please find the attached file.
The following losses cannot be claimed or considered
Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 14Loss on the sale of their personal automobileThe operating income calculated using variable costing and absorption costing amounts to $9,100 and $11,200. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.
Answer:
$2,100
Explanation:
The difference between variable costing income and absorption costing income arises due to fixed cost deferred in inventory. This is the total fixed manufacturing overhead that will be expensed under absorption costing.
Calculation :
Fixed Cost in Inventory = $11,200 - $9,100
= $2,100
Acme Air Compressor Company has decided to limit the number of compressors it will supply to some of its distributors that it suspects are selling a line of compressors made by one of its competitors. Acme is using its referent power in its distribution channel.
a. True
b. False
Answer:
b. False
Explanation:
A Referent power in an organization my be defined as the power of a person or a company that is based on high level of identification with that of admiration or inspiration or out of respect.
Thus in the context, the Acme company does not uses its referent power to its distribution channel when the company decides to limit the supply of the its compressors to some of its distributors as the distributors are selling some of the air compressors of the competitor company.
Hence the answer is FALSE.
Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $10,000 working at other occupations. Refer to Scenario 13-21. What is the economic profit for the family farm
Answer:
0
Explanation:
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
accounting profit = revenue - explicit cost
Explicit cost includes the amount expended in running the business.
100,000 - (25,000 + 40,000 + 25,000) = 10,000
economic profit = 10,000 - 10,000 = 0
The net asset value of shares in a closed-end investment company is $36. An investor buys the shares for $34 in the secondary market. The company distributes $1 and after one year, the net asset rises to $42. The investor sells the shares for $43 in the secondary market. What is the percentage return on the investment
Answer:
Closed-End Investment Company
The percentage return on the investment is:
= = 29.41%
Explanation:
a) Data and Calculations:
Net asset value of share = $36
Price paid by an investor = $34
Dividend distributed = $1
Net asset value after one year = $42
Selling price in the secondary market by the investor = $43
Total amount realized by the investor = $44 ($43 + $1)
Cost of investment = $34
Dollar return on the investment = $10 ($44 - $34)
Percentage return on the investment = Return on investment/Cost of investment * 100
= $10/$34 * 100
= 29.41%
At the beginning of the year, Crane Company estimates annual overhead costs to be $2400000 and that 400000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 375000 hours is
Answer:
the amount of overhead applied during the year is $2,250,000
Explanation:
The computation of the overhead applied is shown below;
= Estimated annual overhead ÷ machine hours × actual machine hours
= $2,400,000 ÷ 400,000 machine hours × 375,000 hours
= $2,250,000
hence, the amount of overhead applied during the year is $2,250,000
Which of the following statements is false? Question 21 options: Not all economists are agreed as to whether government should bail out companies in financial trouble. Not all economists prefer a rule-based monetary policy to discretionary monetary policy. Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. The tax multiplier is always larger than the government spending mult
Answer:
The tax multiplier is always larger than the government spending multiplier
Explanation:
As we know that
Tax multiplier = mpc ÷ (1 - mpc)
Here mpc means marginal propensity to consume
And,
Government spending multiplier= 1 ÷ (1 - mpc)
So based on this the government spending multiplier should always be more than the tax multiplier
Therefore the last option should be considered
Journalise the following transactions of Mr. Aamir Enterprises 4 (i)Mr. Aamirstarted business with Cash ₹60,000.
(ii) Deposited into Bank Rs. 2, 000
(iii). Purchased good for cash Rs. 3, 000
(iv). Building purchased from Hamza Rs. 5, 000.
Answer:
Mr. Aamir Enterprises
Journal Entries:
(i) Debit Cash Rs. 60,000
Credit Capital, Mr. AamirRs. 60,000
To record the amount invested in the enterprise.
(ii) Debit Bank Rs. 2,000
Credit Cash Rs. 2,000
To record amount deposited into the bank.
(iii). Debit Inventory Rs. 3,000
Credit Cash Rs. 3,000
To record the purchase of goods for cash.
(iv). Debit Building Rs. 5,000
Credit Cash Rs. 5,000
To record the purchase of building from Hamza, assumed to be for cash.
Explanation:
a) Data and Analysis:
(i) Cash Rs. 60,000 Capital, Mr. AamirRs. 60,000
(ii) Bank Rs. 2,000 Cash Rs. 2,000
(iii). Inventory Rs. 3,000 Cash Rs. 3,000
(iv). Building Rs. 5,000 Cash Rs. 5,000
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, _________
A. Mary produces only cakes while Tim produces only pies
B. Mary produces only pies
C. Tim produces both pies and cakes
D. Tim produces only cakes while Mary produces only pies
Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
A reasonable amount of uncollectible accounts is evidence Group of answer choices that the credit policy is too strict. that the credit policy is too lenient. of a sound credit policy. of poor judgments on the part of the credit manager.
Answer:
. of a sound credit policy.
Explanation:
credit policy can be regarded as set of guidelines which is sets as terms for credit and payment for customers, It establishes clear course of action as regards late payments, it also Set term of payment for parties to whom credit is been extended. It also define that is required to be set as regards outstanding credit accounts.
The elements of credit policy of a firms are;
✓collection policy
✓ credit period
✓credit standards
✓discounts
It should be noted that A reasonable amount of uncollectible accounts is evidence of a sound credit policy.
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
Direct method
Explanation:
During a recent fiscal year, Creek Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been:
Answer:
475,000
Explanation:
Hey there! For this question, we will be using the COGS and SG&A formulas.
Basic Formula: Revenue - COGS - SG&A = Pretax profits
How do you calculate the SG&A?
Well, SG & A = (Contribution - Prextax income)
SG & A = ($400,000 - $125,000)
SG & A= $275,000
What's next?
Now, you must calculate for revenue.
Contribution margin/Revenue = Contribution Margin Ratio
Revenue = Contribution Margin/Contribution Margin Ratio
Revenue = $400,000/.25
Revenue = $1.1m
Now, let's use the COGS formula.
COGS: Starting inventory + purchases - ending inventory = cost of goods sold
Revenue - COGS - SG&A = Pretax profits
1.1m - COGS - 400k = 125k
COGS = $1.1m - $125k - $400k
Final answer: 1.100 Million (1,000,000)
The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.
Answer:
C. $54,000
Explanation:
Given the following information,
Direct labor = $21,000
Manufacturing overhead = $33,000
Conversion cost refers to the sum of direct labor and manufacturing overhead
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = $21,000 + $33,000
Conversion cost = $54,000
What would happen to GDP if the government hired unemployed workers who had been receiving an amount $0.5 TR in unemployment benefits, as government employees and now paid them $1 TR
Answer:
GDP will increase by $1 TR.
Explanation:
If the government is giving an amount to the unemployed worker then it will not account for the GDP because GDP calculation does not account the government transfers. Moreover, when the government hires them and paid them $1 TR. Thus this will consider as salary and salary is included in the GDP. Therefore, GDP will increase by $1TR.
t is often costly to obtain the information necessary to make good decisions. yet your own interests can be best served by rationally weighing all options available to you. This requires informed decision making. does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
Answer:
The answer is below
Explanation:
1. Yes, making uninformed decisions is irrational. This is because it will cost the individuals making uninformed decisions to lose money in the process. Such individuals may also lose another important aspect concerning their decision, such as technological advantage, political assistance, social benefits, economic privilege, etc.
2. To determine how much information is the right amount is to ensure you continue to acquire information as long as the benefit of the additional information exceeds the additional costs. Otherwise, it is no longer the right amount anymore.
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,232 kilograms of plastic. The plastic cost the company $14,731. According to the standard cost card, each helmet should require 0.65 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
Bandar Industries Berhad of Malaysia
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets is:
= 2,015
2. The stand materials cost allowed (SQ * SP) is:
= $14,105
3. The materials spending variance is:
= $626 U
4. The materials price variance is:
= $893 F
The materials quantity variance is:
= $1,519 U
Explanation:
a) Data and Calculations:
Number of helmets manufacturing = 3,100
Units of direct materials used = 2,232 kilograms
Actual unit of direct materials used = 0.72 kilograms (2,232/3,100)
Cost of direct materials = $14,731
Unit cost of direct materials = $6.60 ($14,731/2,232)
Standard costs per kilogram = $7.00
Standard units of direct materials = 0.65 kilograms
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets = 2,015 (3,100 * 0.65)
2. The stand materials cost allowed (SQ * SP) = $14,105 (2,015 * $7.00)
3. The materials spending variance = $626 U ($14,731 - $14,105)
4. The materials price variance = standard price - actual price * actual quantity used
= $7.00 - $6.60 * 2,232
= $893 F
The materials quantity variance = standard quantity - actual quantity * standard price
= 2,015 - 2,232 * $7
= $1,519 U
Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,120. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment
Answer:
8.63%
Explanation:
The expected rate of return on the bond can be determined using a financial calculator bearing in mind that the calculator would be set to its end date before making the following inputs:
N=17(number of annual coupons in 17 years)
PMT=100(annual coupon=face value*coupon rate=$1000*10%=$100)
PV=-1120(the current price is $1,120)
FV=1000(the face value of the bon is $1000)
CPT
I/Y=8.63%
EXCEL APPROACH:
=rate(nper,pmt,-pv,fv)
nper=N=17
=rate(17,100,-1120,1000)
rate=8.63%
Raj & company has fixed costs of $32,500, its
contribution ratio is 65%, and is selling its
product for $20 per unit. Its contribution margin
per unit is
A. $15
B. $13
C. $18
D. Cannot calculate
Answer:
Unitary contribution margin= $13
Explanation:
Giving the following information:
Contribution margin ratio= 65%
Selling price per unit= $20
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= Contribution margin ratio*selling price
Unitary contribution margin= 0.65*20
Unitary contribution margin= $13
A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the rights to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Answer:
$4,303.68
Explanation:
Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55
After 6 years, the principal due = $4,483
Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68
The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%
An individual has $30,000 invested in a stock with a beta of 0.7 and another $70,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
Answer:
1.05
Explanation:
Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock
total value of the portfolio = $30,000 + $70,000 = $100,000
percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30
percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70
weighted beta of stock A = 0.30 x 0.7 = 0.21
weighted beta of stock B = 0.70 x 1.2 = 0.84
Portfolio beta = 0.21 + 0.84 = 1.05
You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Answer:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
Explanation:
Calculation to determine what your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Using this formula
Optimal bidding = Bidder's own valuation - (Bidder's own valuation - Lowest valuation) ÷ Number of bidders
Let plug in the formula
a) 2 bidders
Optimal bid = $4,000 - [($4,000 - $1,500) ÷ 2]
Optimal bid = $4,000 - ($2,500÷2)
Optimal bid = $4,000 - $1,250
Optimal bid = $2,750
b) 10 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 10
Optimal bid = $4,000 - ($2,500÷10)
Optimal bid = $4,000 -$250
Optimal bid =$3,750
c) 100 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 100
Optimal bid = $4,000 - ($2,500÷100)
Optimal bid = $4,000-$25
Optimal bid = $3,975
Therefore your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
What training would you provide to the supervisors who conduct job interviews? What are some primary safety concerns that the company should have about the warehouse operation? What OSHA guidelines do the company need to follow and communicate to employees? What kind of disabilities do you think could be reasonably accommodated for this job position?
Answer:
Kindly check explanation
Explanation:
For a Supervisor to be deemed capable of conducting a job interview, such individual must posses requisite knowledge about laws guiding the provision of employment, will include both the federal and state employment laws and act, information and provision about equal opportunity for employment and the framework of the labor force.
Primary safety concerns on warehouse operation:
Heavy equipment handling, this include knowledge on the use of heavy machines, restricted areas which must be avoided dduring its use. Similarly, heavy material lifting techniques to avoid back injury.
Also, harmful substances should be given special attention and workers should be trained to avoid prolonged exposure.
3.)
Safety tips and guidelines as outlined and provided by OSHA must be emphaxised and enforced. And workers must be continually updated on new directives as provide by OSHA.
4.)
An impairment which could still be accommodated is hearing ; such a person Can still be aided by following the lead of others and use of sign language or written notes. Visual or impairment of the limbs seems extreme and dies not seem manageable.
A company is an organization or commercial business setup. The supervisors conducting interviews must be well versed with laws regarding employment.
What is employee safety?Workplace safeties are the conditions and environment that include and cover the health, safety, and well-being of the employees.
A person conducting interviews in a company must be thorough with laws regarding employment. The laws should be both federal and state law and must include the rights of the employees.
In warehouse operations, the handling of the heavy equipment must be proper and includes the proper and complete knowledge of the machines and the equipment.
According to OSHA, the guidelines provided must be followed to ensure safety and should be enforced in the companies for security purposes.
A mute or hearing impaired person can be accommodated in places like this as they can see things to perform the tasks but will not be able to listen and talk but can be communicated in sign languages.
Therefore, safety guidelines by OSHA must be followed.
Learn more about employees here:
https://brainly.com/question/20910158
On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firm’s maximum 2012 deduction for depreciation?
Answer:
Calendar-Year Firm
The firm’s maximum 2012 deduction for depreciation is:
= $917.
Explanation:
a) Data and Calculations:
Purchase of a used computer server on May 11, 2012 = $6,000
Since the server is a used one, we assume a four-year useful life
Salvage value = $500
Assumed useful life = 4 years
Depreciable amount = $5,500 ($6,000 - $500)
Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:
Annual depreciation expense, using the straight-line method = $1,375
For 2012, the firm's maximum deduction for depreciation will be:
= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)
Taggart Transcontinental hs a market cap of $4.5 billion, total enterprise value (including net debt) of $8 billion, an equity beta of 1.1, and a debt beta of 0.10. Your estimate of the asset beta for Taggart Transcontinental is closest to: A) 0.42 B) 0.59 C) 0.66 D) 0.71 E) 1.1
Answer:
C) 0.66
Explanation:
Market capitalization = $4.5 billion
Total enterprise value = $8 billion
Total Debt = ($8 billion - $4.5 billion) = $3.5 billion
Weight of Equity = $4.5 billion/$8 billion = 0.5625
Weight of debt = $3.5 billion / $8 billion = 0.4375
Beta of Debt = 0.10
Beta of Equity = 1.1
Asset Beta = 0.5625*1.1 + 0.4375*0.10
Asset Beta = 0.6625
Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 30 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (30, 50). Therefore this class could
Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
An increase in interest rates will help increase the future value of a portfolio because the cash flows produced by the portfolio: a. will increase the maturity value of the bond. b. will decrease the yield to maturity of the bond. c. can be used to recall high-rate bonds. d. can be reinvested at higher rates of return. e. will generate cash to pay future coupon interest.
Answer:
d. can be reinvested at higher rates of return.
Explanation:
Option d. can be reinvested at higher rates of return.
The interest rates on the portfolio is the yield that a person receives on his investment. This yield he gets periodically, therefore amount received can be used to generate further yields by reinvesting it into higher interest paying investments.
Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.)
Answer and Explanation:
The adjusting entry is shown below:
Insurance Expense ($5,280 × 3 months ÷ 12 months) $1,320
To Prepaid Insurance $1,320
(being the insurance expense is recorded)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Answer:
Total cost per year = $1,801,860
Explanation:
Given:
Annual demand = 12,000 units
Ordering cost = $30 per order
Inventory holding cost = $3 per year
Order quantity = 1000 units
Cost per unit of the item = $150
Find:
Total cost per year
Computation:
Total cost per year = Purchase cost + Order cost + Inventory holding cost
Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]
Total cost per year = 1,800,000 + 360 + 1500
Total cost per year = $1,801,860
A friend has $1,400 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.90% interest or to lend it to Victor. Victor has promised to repay $1,470 after six months.
Required:
a. Calculate the interest earned on the savings account for six months.
b. Calculate the rate of return if the money is lent to Simone. Round your percentage answer to two decimal places.
c. Which alternative would you recommend? Explain your answer.
Answer:
a. The interest earned on the savings account for six months is:
= $41.30
b. The rate of return if the money is lent to Victor is:
= 10%
c. Based on the calculations alone, lending the $1,400 to Victor is better than saving in the bank, provided that there is no risk of default on the part of Victor.
Explanation:
a) Data and Calculations:
Savings from part-time job = $1,400
Interest rate in a bank savings account = 5.90%
Period of savings in the bank = 6 months
Future value of the $1,400 savings = $1,441.30
Victor repayment if $1,400 was instead lent to him = $1,470
From a financial calculator, the future value of $1,400 at 5.9% after six months is $1,441.30
Loan Amount 1400
Loan Term 0 years 6 months
Interest Rate 5.9
Compound Semi-annually
Pay Back 6 Months after
Results:
Payment Every 6 Months = $1,441.30
Total of 1 Payments = $1,441.30
Total Interest = $41.30
Interest paid by Victor = $70 ($1,470 - $1,400)
This translates to 5% for six months and 10% for 1 year
5% = ($70/$1,400 * 100)
