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2 years ago

Pros and Cons of Adjustable-Rate Mortgages

1 answer:

4 0

The pros and cons of the Adjustable-Rate Mortgages are consistent payments and lower interest rates possible.

<h3>What is Mortgage?</h3>

Mortgage refers to the agreement between the lender and the buyer which involves the exchange of the money.

When person and a lender enter into a mortgage, the lender is granted the power to seize your property if person are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.

Adjustable-Rate Mortgages is the loan which is granted for the homes which depends on the market as it does not has the fixed rate of interest.

The ARS mortgage type offers comfortable consistent payments, and over time, reduced interest rates may be feasible. However, there is a chance that interest will grow, which could be a drawback.

Learn more about Adjustable-Rate Mortgages here:

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What are the limitation of accounting ?

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Answer:

One of the biggest limitations of accounting is that it cannot measure things/events that do not have a monetary value. If a certain factor, no matter how important, cannot be expressed in money it finds no place in accounting.

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4 years ago

The main pupose of an investment institution is to A. Allow customers to deposit money into accounts at no charge B. Use deposit

Leya [2.2K]

Answer:

The answer is "Option D".

Explanation:

Credit unions or financial institutions, among many others, have depository institutions. It provides customers with a reliable, stable but easy way of saving money or residences and businesses credits. The bank provides interest rates on deposits and uses that money to lend at rising interest rates.

Its main source of income for depositary entities is interest from loans. They build consumer deposits and facilitate economic development in households and businesses.

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3 years ago

Consider a product market with a supply function Qs i = b0 + b1 Pi + u s i , a demand function Qd i = g0 + u d i , and a market

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Answer:

Explanation:

A. Solving for P yields P =0011dsiiuuγβββ−−+; thus 21(,)susCov P uσβ−=.Because Cov(P,u) ≠0, the OLS estimator is inconsistent.

B. We need an instrumental variable, something that is correlated with P but uncorrelated with us. In this case Q can serve as the instrument, because demand is completely inelastic (so that Q is not affected by shifts in supply). γ0can be estimated by OLS (equivalently as the sample mean of Qi

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3 years ago

For the current year ended March 31, Cosgrove Company expects fixed costs of $27,600,000, a unit variable cost of $805, and a un

tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $27,600,000

Unitary variable cost= $805

Unit selling price= $1,150

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 27,600,000 / (1,150 - 805)

Break-even point in units= 80,000 units

Desired income= $5,175,000

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (27,600,000 + 5,175,000) / 345

Break-even point in units= 95,000 units

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4 years ago

Chester's Elite product Cid has an awareness of 72%. Chester's Cid product manager for the Elite segment is determined to have m

lapo4ka [179]

Answer:

<em>Minimum of 2M USD is required to be invested. </em>

Explanation:

Chester's Elite product Cid Awareness = 72%

First 1M USD generates = 22% awareness

Second 2M USD generates = 23% awareness

Third 3M USD generates = 5%

1/3 of Cid's existing awareness is lost every year

if Cid Awareness = 72% this year .

Next Year it will be = 72-24 = 48%

Year after next year = 48-16 = 32% .

So,

we know that Agape's Awareness remains same next year = 77% .

So, Chester's Elite Product Manager should spend 2M USD in promotion in order to get ahead from Andrew's Agape Product.

Because by spending 2M USD Cid Awareness will become = 117% = 72 + 22+ 23.

So, after a year if it lost 1/3 then = 1/3 of 117 = 39

So, final awareness of Cid will be = 117-39 = 78%

And Andrew's Awareness will be = 77%

Hence, <em>minimum of 2M USD is required to be invested. </em>

8 0

4 years ago