Find the Cost of an Item That Was Sold for $4230.00

question 88

Essay

Find the cost of an item that was sold for $4230.00 in order to realize a margin of 113% based on cost.

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Definitions:

Total Debt Service Ratio

A financial ratio that compares an individual's total debt payments to their gross income, used by lenders to assess borrowing capacity.

Compounded Semi-annually

This refers to the process where interest earnings are calculated and reinvested into the principal balance twice a year.

Amortization Period

The total length of time it takes to pay off a loan in full with regular payments, often taking into account interest.

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.