Explain the Tax- Payable Method of Paying Income Tax

question 25

Essay

Explain the tax- payable method of paying income tax.

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Definitions:

EAR

Effective Annual Rate; the actual interest rate an investor or borrower receives or pays after compounding interest is taken into account over a year.

Actual Rate

The interest rate that is actually earned or paid on an investment, loan, or other financial product.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Credit Card

A plastic card issued by a bank allowing the holder to purchase goods or services on credit.