Answer:
The variable rate loan term best describes this loan.
Explanation:
In these type of loans variable interest rate is charged. A variable interest rate is a floating interest rate on a loan or security (bonds,debentures) that changes over time because it is based on an underlying benchmark interest rate or index that changes periodically. So the interest payment fluctuates with change in benchmark.
The advantage of a variable interest rate is that if the underlying interest rate or index falls down, the borrower’s interest payments also decrease. Accordingly, if the underlying index rises, interest payments increase.
Answer:
Commoditization of a market means that the goods or services offered will be homogeneous. This means that they will be practically identical and customers will be indifferent when choosing one product or any other product because they are identical or very similar. E.g. think about gold, which is one of the most important commodities in the world. A consumer doesn't care if they are buying gold from Alaska, Canada, Brazil, etc., they are simply buying gold.
On the other hand, differentiation means that the products or services offered are heterogeneous or different. When products are differentiated, customers will buy them because they like them more than the competition. E.g. you buy Coke because you like it more than Pepsi or any other brand.
Some products will naturally tend to be commodities, e.g. agricultural products, but others go through a commoditization process that is not natural. E.g. banks offering homogeneous checking or savings account. The problem with commoditization happens when one company simply decides to offer something different. Before Amazon, internet retail was basically non-existent. But when Amazon came by, they decimated or virtually eliminated the major brick and mortar players. During many years Sears was the number 1 retailer in the world, then came Walmart. But after Amazon came, even Walmart's long term survival is doubtful and Sears, JC Penny, Toys R Us, Radio Shack, and many others are either extinct or about to become extinct. The new norm is online retailing now.
Answer:
Future Value is $35776.902
Explanation:
Given data
saving = $2000
rate = 7 % = 0.07
time = 12 year
to find out
Future Value?
solution
we will apply here future value formula that is
Future Value = saving × (1 + rate)^time - 1 / rate
put all value here and we get
Future Value =2000 × (1 + 0.07)^12 - 1 / 0.07
Future Value = 2000 × 17.888451
Future Value is $35776.902
Answer:
13%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-74,361.78
Cash flow in year 1 - 4 = 25,000
IRR = 13%
The answer would be B
(self-concept is how one sees their self and their image, thus the “self” part of the word)
