Decide Whether the Statement Makes Sense

question 256

Essay

Decide whether the statement makes sense. Explain your reasoning.
-Maria saved $1750 in taxes after donating $5000 to charity. So Maria's sister also donated $5000 to charity thinking that she would save $1750 but she only saved $750.

---

Definitions:

Interest

The charge for borrowing money or the return on invested capital, typically expressed as an annual percentage rate.

EBITDA Coverage Ratio

A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Interest Charges

Costs incurred by borrowers for the use of borrowed money, typically expressed as an annual percentage rate.