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Anna71 [15]
3 years ago
7

A property is purchased for $110,000. The lender provides a loan for $85,000. He offers a very attractive interest rate of 3% wi

th 3 discount points. What did the lender charge for points?
Business
1 answer:
zlopas [31]3 years ago
5 0

Answer:

The lender charged $2,550 for the points.

Explanation:

Discount points is a type of prepaid fees that mortgage borrowers can purchase from the lenders that lowers the quantity of interest that the borrower will have to pay in the future. In general, the discount points costs 1% of the amount borrowed. A discount point usually lowers the loan interest amount to be paid by an one-eight to one-quarter of a percent.

To determine the charge for the points in our case above, we can express the discount charge points as shown;

D=R×L

where;

D=discount point charge

R=standard discount point rate

L=loan amount

In our case;

D=unknown

R=1%

L=$85,000

replacing;

D=(1/100)×85,000=$850

The lender charged $850 for one points.

Determine the total charge for all the points purchased using the expression below;

T=D×N

where;

T=total charge for all the points

D=charge per point

N=number of points purchased

In our case;

T=unknown

D=$850

N=3 points

replacing;

T=850×3=$2,550

The lender charged $2,550 for the points.

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Answer: The answer is given below

Explanation:

A best-cost strategy is a strategy that is used by companies as they focus on low cost in order to give their customers better value for the money spent on the purchase of goods or services from them. The goal of this strategy is to keep the prices and costs lower when compared with the other competitors that offer similar products.

This strategy can be very successful in retail stores. Retail stores offer similar products to their competitors and using this strategy could help in making the store get more customers and hence push up its income.

For this strategy to work in such industry, firstly, the company will need to study its market very well, get to know its competitors, have a good working relationship with the manufacturers of different products, and have a friendly and amazing staffs who know what is and expected of them. With all these in place, success will be achievable.

An example of a firm in Jacksonville that is following a best cost strategy is

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3 years ago
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Leno4ka [110]

Answer:

change management is the most important skill that human resource personnel contribute.

Explanation:

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This slows down speed of decision making.

At this stage there is a need for revitalisation and change in order to make the organisation more efficient.

Change management is the process by which employees in an organisation are prepared and supported when there are far reaching improvements to organisation structure.

It ensures a smooth transition by providing needed information and reducing the stress associated with organisational change.

This is a key skill needed by human resource personnel fusing the elaboration stage

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What is the major difference between a nonprofit organization and a for-profit organization?.
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Answer:

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Explanation:

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TEN POINTS! Fairfield is a small, rural town in the countryside of Pennsylvania. The three biggest stores there are a natural fo
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Answer:

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Explanation:

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Answer:

The reason to prepare the consolidation worksheet is to maintain the record of what is finally entered in the books to record the transactions in between the holding and subsidiary.

This basically thus, requires the elimination of all the assets and liabilities of the subsidiary, and creation of such assets and liabilities into the balances of the holding(parent) company. In this manner the elimination is necessary to record.

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