Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 In this brief video we’re going to learn how to calculate what is known as “real income.” Real income adjusts for inflation and is a better gauge of purchasing power than ordinary income. Below is the question we’ll be solving in this video if you’d like to follow along.
“If your income increased from $23,000 to $26,000 during a period when the rate of inflation was 4 percent, your real income after the raise was __________.”
Can we calculate the percentage change between "PV" and "FV" and call it Nominal Income:
Therefore, it would be: 13.04%
And since Nominal Income = Real Income + i
given: i = 4%
Therefore, Real Income = 9.04%
23000 + (23000 * 9.04%) = 25079.2
Is this correct?
Work out if you need to pay.
When you know your gain you need to work out if you need to report and pay Capital Gains Tax.
You may be able to work out how much tax to pay on your shares.
the same type, acquired in the same company on the same date sold at the same time.
sold other shares in the tax year sold other chargeable assets in the tax year, such as a property you let out claim any reliefs are a company, agent, trustee or personal representative.
Reporting a loss.
The rules are different if you need to report a loss.
Fifth most actively traded share.
Market capital of DKK 206 bn.
Shareholders by geography.
Rest of Europe etc.
Ratings from equity analysts covering the Danske Bank share and consensus earnings estimates.
Selling in special circumstances.
shares you bought at different times and prices in one company shares through an investment club shares after a company merger or takeover employee share scheme shares.
Jointly owned shares and investments.
If you sell shares or investments that you own jointly with other people, work out the gain for the portion that you own, instead of the whole value. There are different rules for investment clubs.
What to do next.