On January 1, 2019, AJ Co. exchanged equipment for a $400,000 zero-interest-bearing note due on January 1, 2022. The prevailing rate of interest for a note of this type at January 1, 2019 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in AJ;s 2020 income statement? AJ has a 12/31 fiscal year end and uses the effective interest method.

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?