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Applicable AFR rate for service warranty income method

Level 1

During income calculation using service warranty income method, what should we take as AFR rate when the federal rate is 0.15% (which is what the short term AFR is for Dec 2020).

The guidelines say we should round it to nearest full percent. Should this be zero or 1% ? 

Much appreciate any help

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1 Comment 1
Level 15

Typical Fed rounding is: first 5 go down, second 5 go up.

1.0, 1.1, 1.2, 1.3, and 1.4 = 1.0

1.5, 1.6, 1.7, 1.8, and 1.9 = 2.0

"Level Up" is a gaming function, not a real life function.
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