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4 years ago

What financial behaviors will typically lead to a low credit score?

Business

2 answers:

Yuliya22 [10]4 years ago

7 0

Answer: Maxing out your credit cards will typically lower your credit score.

Explanation:

4 financial behaviors that can empty your purse. You may like to believe in yourself as a responsible administrator of your cash, but behavioral experts say a wide collection of subconscious characteristics and behavioral preferences can produce people to make bad economic choices.

1. Many people abandon to look at other choices when thinking of a larger purchase or economic goods. As a consequence, they cover up abstaining out on chances to save cash on a conventional proceeding.

2. People often neglect important aspects about mortgages and other economic deals. “In some situations, people actively withdraw data that would help them make better choices,” the researchers recorded.

3. People manage to shut down when met with complex choices and abandon to work if they perceive they are in over their economic ends. That, in turn, can lead to disastrous procrastination when it gets to money objects.

4. Sentiments can play a superfluous part in how people think about their investments and respond to specific provocations.

AfilCa [17]4 years ago

5 0

A.
Low credit scores usually indicate irresponsible spending behaviors.

You might be interested in

Which organization oversees GAAP for governmental organizations?

MissTica

Answer:

the Financial Accounting Standards Board or FASB for short so the answer is B

6 0

3 years ago

Who can become a principal and who can become an agent?a. Any person can become a principal, but an agent has to have the capaci

Rufina [12.5K]

Answer: Option A

Explanation: Any person can become a principal having sufficient business but in order to become an agent of the principal one needs to have the capacity to contract on behalf of the principal.

In a principal agent relationship, the principal bounds the agent to act on his behalf. So, there is no legal contracts to become a principal but the acts of agent are legally bound to a certain extent.

Hence, option A is correct.

6 0

3 years ago

Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in

Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0

3 years ago

Regina Henry deposited $20,000 in a money market certificates that provides interest of 10% compound and quarterly if the amount

Andrews [41]

Answer:

Regina: Final amount=$62,769

Will Smith: Present value: $213,216

Explanation:

Regina:

Compound quarterly means that each quarter of the year ( every three months) she will receive a 10% interest rate of her deposit. To convert this periodic rate to an annual rate( because the problem ask you about years) you use this formula :

Annual rate= ((1+Periodic rate)^(# periods))-1

In this case the number of periods means the number of quarters a year have, which is 4

Annual rate= ((1+10%)^(4))-1= 46.41%

To find the final amount Regina has after 3 year we use this formula:

Final Capital (FC)= Initial Capital (IC)*[(1+interest(i))]^(number of periods(n))

FC= $20,000*[(1+46.41%)^3]

FC=$62,769 I attached an excel figure which shows a more detailed data.

Will Smith

Semiannually means that every 6 months Will Smith will receive a 12% interest rate of the initial investment. To convert this periodic rate to an annual rate you use the same above formula:

Annual rate= ((1+Periodic rate)^(# periods))-1

In each year Will will receive twice the interest rate over the initial investment

Annual rate = ((1+12%)^(2))-1

Annual rate= 25.44%

The present value of $80,000 from now to 5 years is calculated using the formula attached, but I used Excel. First you have to copy all the cash flows of the 5 years. Then, you set the interest rate that in this case is the one that you found above( 25.44%). Finally you use the financial formula "NPV" in this way:

"=NPV(25.44%;C4:C8)" I used C4:C8 because in those excel cells i copied the cash flows.

I got that the present value of this amount is $213,216

5 0

4 years ago

Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 o

agasfer [191]

Answer:

a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000

loss allocation = $65,000

loss limited by her tax basis = $65,000 - $48,000 = $17,000

b) Jenna's at risk loss = $48,000 - $13,000 = $35,000

c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000

4 0

3 years ago