<span>Answer choices are:
</span>a. The loan must have a cosigner
b. Used for vehicle purchases only
c. Fixed initial rate followed by periodic rate adjustments
d. A short duration of a loan, usually five years or less
Correct answer choice is:
c. Fixed initial rate followed by periodic rate adjustments
<span>hybrid ARM loan </span>is a loan that starts with a fixed interest rate for a specific period of time, that can be in few years, and later on, the terms are changed to a variable rate of interest for the remaining amount of time period.
Units to be produced in February is calculated as -
Units to be produced in February = February sales + Ending inventory of February - Beginning inventory
February sales = 4,600 units
Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units
Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units
Units to be produced in February = 4,600 units + 1,325 units - 1,150 units
Units to be produced in February = 4,775 units
Answer:
The correct answer is $1,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Receives a loan = $100,000
Withdraws = $50,000
Interest rate = 2%
So, we can calculate the implicit cost by using following formula:
Implicit cost = Withdrawal amount × Tax rate
By putting the value, we get
Implicit cost = $50,000 × 2%
= $1,000
