Financial Calculations

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Capital gains are the profits an investor makes on certain types of investments. Real estate, precious metals, collectibles, bonds, mutual funds, stocks and options are investments for which a person can earn capital gains, according to About.com.

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  • How Do You Calculate Late Fees?

    Q: How Do You Calculate Late Fees?

    A: The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.
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  • What Is Net Monthly Income?

    Q: What Is Net Monthly Income?

    A: Net monthly income refers to the paycheck employees receive from their employers. Employers deduct taxes and Social Security contributions before creating checks for their employees.
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  • How Can One Live Cheaply?

    Q: How Can One Live Cheaply?

    A: There are many ways to live cheaply. Before you spend any money, ask yourself if you really need the thing you are considering purchasing. Before shopping, write down all the items you really need and stick to the list. Doing so will help you save a lot of money and live much more frugally,
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  • How Do You Calculate Net Purchases?

    Q: How Do You Calculate Net Purchases?

    A: To calculate net purchases, add all purchases and freight-in, or shipping, together to get gross purchases and then subtract purchase discounts, purchase returns and allowances from gross purchases. This process yields the net purchase total, according to Simplestudies.
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  • How Is a Sales Commission Calculated?

    Q: How Is a Sales Commission Calculated?

    A: A sales commission is calculated using the commission structure agreed upon between the owner or manager of a business and a salesperson. This commission structure is sometimes received as a one-time payment. However, it can also be received as a recurring commission over the life of the sales account.
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  • What Is the Formula for Total Revenue?

    Q: What Is the Formula for Total Revenue?

    A: According to AmosWeb, total revenue is calculated by multiplying the price received from the product times the quantity of the product sold at that price. Total revenue is usually depicted as a total revenue curve with it being directly related to marginal revenue and average revenue.
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  • How Do You Calculate a Percentage of a Dollar?

    Q: How Do You Calculate a Percentage of a Dollar?

    A: To calculate a percentage of $1.00, treat it as 100 pennies. The percentage sought is equal to the same number in cents. According to Math Is Fun, "percent" is a number per 100, so treating $1.00 as a 100 pennies makes the math simple.
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  • What Is Analytical Research?

    Q: What Is Analytical Research?

    A: Analytical research is a specific type of research that involves critical thinking skills and the evaluation of facts and information relative to the research being conducted. A variety of people including students, doctors and psychologists use analytical research during studies to find the most relevant information. From analytical research, a person finds out critical details to add new ideas to the material being produced.
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  • What Is an Economic Continuum?

    Q: What Is an Economic Continuum?

    A: An economic continuum is a method of categorizing parts of the economy, starting with those parts closest to the natural environment and flowing to those parts furthest away from it, according to About.com Geography. More developed countries have longer continua.
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  • What Is the Formula for Total Fixed Cost?

    Q: What Is the Formula for Total Fixed Cost?

    A: The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.
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  • What Are Hedging Techniques?

    Q: What Are Hedging Techniques?

    A: Hedging techniques are strategies and tactics employed by investors to reduce financial risk. Pairing, short-against-the box, exchange-traded funds, futures and options are the most commonly used to predict and reduce financial risk.
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  • What Is a Home Construction Cost Calculator?

    Q: What Is a Home Construction Cost Calculator?

    A: A home construction cost calculator is a calculator used to estimate the cost of constructing a new house. The calculator helps a person to determine how big the house, the kitchen and the rooms should be. It also asks a person what kind of finishing he wants around the house.
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  • What Is the Importance of Financial Accounting?

    Q: What Is the Importance of Financial Accounting?

    A: Financial accounting is important because it provides an organization's stakeholders with business statements, allowing them to know if the organization is making or losing money. This information is essential in determining if a company is able to maintain profitability, according to Accounting-Careers-Guide.com.
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  • What Is the Formula for Calculating Compound Interest?

    Q: What Is the Formula for Calculating Compound Interest?

    A: One formula for calculating yearly compound interest is M=P(1+i)n. "M" represents the final amount with the principal and interest combined, "P" represents the principal amount, "i" represents the interest rate, and "n" is the number of years invested.
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  • What Does "net Cost" Mean?

    Q: What Does "net Cost" Mean?

    A: The net cost of a good or service is the total cost of the product minus any benefits gained by purchasing that product, according to AccountingTools. It differs from the gross cost, which is just the total cost of a product.
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  • What Is the Indirect Method for Preparing a Cash Flow Statement?

    Q: What Is the Indirect Method for Preparing a Cash Flow Statement?

    A: The indirect method for preparing a cash flow statement is used to show the uses and sources of cash by a business. It is the preferred method by most companies because the information required to prepare it is fairly easy to assemble from accounts that a company usually maintains. However, the indirect method does not clearly show how cash flows through a business, which is shown in the direct method.
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  • How Do You Calculate Interest Expense?

    Q: How Do You Calculate Interest Expense?

    A: Interest expense is calculated as the interest rate multiplied by the amount of the outstanding principal of the debt. Defined by Investopedia, interest expense is the cost incurred by an entity on borrowed funds.
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  • What Is a Petty Cash Transaction?

    Q: What Is a Petty Cash Transaction?

    A: Petty cash transactions are small business expenses that are paid out in cash, according to About.com. Frequently a company has a small amount of cash on hand that is used to pay for small purchases or reimburse employees for company purchases made out of pocket. Petty cash expenditures are recorded in the company's financial records to keep track of how the money is utilized.
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  • How Do You Calculate Food Cost Percentage?

    Q: How Do You Calculate Food Cost Percentage?

    A: StarChefs explains that food cost percentage is figured by taking the total beginning inventory cost plus purchases minus the ending inventory costs; then dividing that number by food sales.
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  • What Is a Marginal Revenue Function?

    Q: What Is a Marginal Revenue Function?

    A: The marginal revenue function in economics refers to the increase in revenue resulting from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in revenue by the change in output. While the marginal revenue function can remain constant over a specific level of output, it follows the law of diminishing returns. As a result, marginal revenue tapers off as output increases.
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  • What Is the Formula for Total Profit?

    Q: What Is the Formula for Total Profit?

    A: The formula for total profit, or net profit, is total revenue in a given period minus total costs in a given period. If a business generates $250,000 in total revenue in a quarter, but has $215,000 in total costs, its total profit for the period is $35,000.
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