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pychu [463]
3 years ago
15

Although generous disability insurance can help those who have been permanently injured, it can also increase the likelihood tha

t individuals will falsely claim to be disabled. This likelihood is a(n) _________.A. direct incentive
B. indirect incentive
C. positive incentive
D. innovation
E. marginal cost
Business
1 answer:
emmasim [6.3K]3 years ago
4 0

Answer:

B, Indirect incentive

Explanation:

An incentive is anything that motivates an individual to behave in a certain way. An incentive could range from money to many other things and it is the reason why an individual acts in a certain way.

For example, salary and bonuses are incentives for workers. This makes the worker work better and harder and more efficiently because he/she knows that there is something to encourage him for doing his/her work diligently.

Incentive can be direct or indirect as in the case of the above question.

In the case of the above question, a generous disability insurance can motivate workers to falsely claim to be disabled. This means that the financial implication of the insurance package for disability is most likely the only reason for workers to claim false disability.

Cheers.

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RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%,
qaws [65]

Answer:

They should not be able to successfully negotiate the terms of this loan within these parameters.

Explanation:

It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.

if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.  

Interest = $10,000*0.12

             = $1,200

RT requires $1,200 in interest.

It has been provided that Cynthia earns 8% on her investment.

If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.  

Earning = $10,000*0.08

             = $800

Cynthia is going to earn $800

RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.

Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.

6 0
3 years ago
What is the percentage loss on the funds she invested if the interest payment is included in the calculation
adoni [48]

Answer with complete Question:

Barbara buys 130 shares of DEM at $33.00 a share and 190 shares of GOP at $37.00 a share. She buys on margin and the broker charges interest of 7 percent on the loan.

a. If the margin requirement is 42 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent.

$ 6,565.60

(Which is equal to 58(100 - 42)% of $11,320.)

b. If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round your answer to the nearest cent.

$  459.59 ($6,565.60 x 7%)

If after a year she sells DEM for $22.00 a share and GOP for $30.00 a share, how much did she lose on her investment? Use a minus sign to enter the amount as a negative value. Round your answer to the nearest cent.

$  2,760

What is the percentage loss on the funds she invested if the interest payment is included in the calculation? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places.

28.44 %

Explanation:

a. Data and Calculations:

DEM, 130 shares at $33.00 a share = $4,290

GOP, 190 shares at $37.00 a share =   7,030

Total value of investments = $11,320

Margin requirement = 42% of $11.320 = $4,754.40

Barbara can borrow $6,565.60 ($11,320 - $4,754.40)

1. Interest on borrowed fund (margin):

$6,565.60 x 7% = $459.59

2. Loss from Sale of:

DEM, 130 shares at $22.00 a share = $1,430 ($11 x 130)

GOP, 190 shares at $30.00 a share = $1,330 ($7 x 190)

Total loss from investments = $2,760

3. Percentage Loss, with interest included:

Interest on borrowed fund = $6,565.60 x 7% = $459.59

Total loss from investments =       $2,760.00

Total loss  = $3,219.59

Total value of investments = $11,320

Percentage Loss = $3,219.59/$11,320 * 100 = 28.44%

4 0
3 years ago
Joe is one of the lead accountants for his company. Last month he was pressured to prepare the financial reports more quickly th
Minchanka [31]

Answer:

Explained.

Explanation:

Joe being the lead accountant for his company so, he prepares the financial reports.

Joe made mistakes in financial report making his  manager angry  because the resources at the Joe's company are limited and financial report that are timely and reliable would have helped the company to attract some financial investment.

6 0
2 years ago
Based on your interpretation of your responce to the survey questionaire what does this reveal about your interest in engaging t
Gwar [14]

Answer:

Answer:

I realized that sports is my thing, although I'm not that athletic. I always have a blast whenever I'm engaging in sports. I also like watching it on television.

I fell in love with sports because exercise is good for our health. Engaging in sports also help improve my mood and boost my energy.

#BrainliestBunch

7 0
3 years ago
Read 2 more answers
James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7
sweet-ann [11.9K]

Answer:

a.

Bond Price  = $563,333.90007 rounded off to $563,333.90

b.

Bond Price  = $502500

c.

Bond Price  = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12  =  0.02 or 2%    

 

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02]  + 502500 / (1+0.02)^14

Bond Price  = $563,333.90007 rounded off to $563,333.90

 

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12  =  0.03 or 3%    

 

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03]  + 502500 / (1+0.03)^14

Bond Price  = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12  =  0.0425 or 4.25%    

 

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price  = $437232.16025 rounded off to $437232.16

7 0
3 years ago
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