Understanding Contingent Fees. A. Define the Term "Contingent Fee

question 81

Essay

Understanding contingent fees.
A. Define the term "contingent fee."
B. Explain the circumstances under which a CPA may and may not accept a contingent fee.

---

Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian financial account designed for retirement savings, offering tax benefits.

Compounded Nominal Rate

A nominal rate that is compounded refers to the stated interest rate of an investment or loan, not taking into account the effects of compounding over specific periods.

Effective Rate

The effective rate is the interest rate on a loan or investment, adjusted for the actual number of compounding periods per year, giving a true annual rate.

Compounded Nominal Rate

The rate at which interest is calculated on the initial principal and previously accumulated interest over a specific time period without considering the inflation.