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mestny [16]
1 year ago
8

Where do financial institutions get the funds that they lend to customers?

Business
1 answer:
Anon25 [30]1 year ago
3 0

Banks typically generate income by borrowing funds from depositors and paying them back at a predetermined interest rate. By charging the borrowers a higher interest rate and making money off the interest rate spread, the banks will lend the money to borrowers.

Banks obtain savings from individuals and companies (savers) and use these resources to issue loans to others who need money (borrowers). One of the biggest funding expenses for banks is the interest they must pay on the money they receive from savers.

Finance companies make money by selling securities, primarily commercial paper, to other companies, including banks, in the money market. They then lend the money to people or corporations at an interest rate that is higher than what they pay on their securities.

To learn more about Banks

brainly.com/question/15062008

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White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $475,000. To do so
Dmitriy789 [7]

Answer:

22.81%

Explanation:

The computation of the rate of return is shown below:

= (cash inflow ÷ total cost) - 1

where,

Cash inflow is $595,000

And, the total cost is

= $475,000 + $475,000 × 2%

= $475,000 + $9,500

= $484,500

So, the rate of return is

= ($595,000 ÷ $484,500) - 1

= 22.81%

Hence, the rate of return is 22.81%

Basically we applied the above formulas

4 0
3 years ago
In a telephone operating company, negotiating and maintaining ongoing relations with regulatory bodies can be among the most imp
steposvetlana [31]

Answer:

General administration

Explanation:

In a telephone operating company, negotiating and maintaining ongoing relations with regulatory bodies can be among the most important activities for competitive advantage, this type of value chain support activity is known as "General administration".

General administration is a powerful source of competitive advantage which consists of a number of activities, including general management, planning, finance, accounting, legal and government affairs, quality management, and information systems, it typically supports the entire value chain and not individual activities.

7 0
4 years ago
Suppose that your monthly net income is $2,540. Your monthly debt payments include your student loan payment and a gas credit ca
ira [324]

Answer: 30%

Explanation:

We should note that debt payments-to-income ratio is calculated as:

= Debt payment / Net income

= 762 / 2540

= 0.3 or 30%

Therefore, the debt payments to income ratio is 30%

6 0
3 years ago
You purchase a new car for $33,333. What is the outstanding balance on the loan after you make the second payment if you have a
GenaCL600 [577]

Answer:

$32,419

Explanation:

I prepared an amortization schedule using an excel spreadsheet. The monthly payment is $673.32:

year        beginning  scheduled  principal     interest ending

              balance             payment                                                 balance

1        $33,333         $673.32        $456     $218       $32,877 .45

2        $32,877         $673.32        $459     $215       $32,418.91

The outstanding balance after the second payment = $32,418.91 ≈ $32,419

6 0
3 years ago
A home is appraised at $125,000 and the assessment level is 35%. There are a total of 40 mills in the taxing area.
Andrews [41]

Answer:

$1,750

Explanation:

First, we have to calculate the assessed value which can be determined using the below formula:

Assessed value=Appraised value of home*assessment level

                         =125,000*35%

                         =$43,750

The next step is to calculate the cost of each mill which can be calculated using the following formula:

Cost of each mill=Assessed value/1000

                           =43750/1000

                           =43.75

The final step is to find the annual taxes, which can be calculated using the following formula:

Annual taxes=cost of each mill*number of mills

                     =43.75*40

                     =$1,750

   

7 0
3 years ago
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