Answer: $135
Explanation:
First find the future value of the proceeds.
= 10,000 * (1 + 5%)⁷
= $14,071
The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.
Convert the interest rate into monthly figure:
= 3%/12
= 0.25%
Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)
14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)
14,071 = Annuity * 103.82
Annuity = 14,071 / 103.82
= $135.53
= $135
Answer:
Usage Rate.
Explanation:
A company is targeting consumers who have not purchased its products for several months. It is segmenting the consumer market based on usage rate. It is one of the type of behavioral segmentation where markets are segmented on the basis of consumers knowledge, response towards product, usage rate and attitude. Marketers divide the markets into nonusers, ex-users, potential users, first time users and regular users in order to target them accordingly.
$352,696 lender stand to lose in the absence of pmi. A borrower may be required to PMI as a condition of obtaining a conventional mortgage loan.
<h3>What is Private Mortgage Insurance (PMI) ?</h3>
Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. When a buyer puts down less than 20% of the home's price, the majority of lenders demand PMI.
In contrast to most insurance types, this one safeguards the lender's investment in the house, not the policyholder. However, PMI enables some people to purchase a home more quickly. PMI makes it possible for people to get financing if they decide to put down between 5% and 19.99% of the home's cost.
It does, however, incur additional monthly expenses. Until they have built up enough equity in the property that the lender no longer views them as high-risk, borrowers must continue to pay their PMI.
Formula for calculating PMI :Divide the loan amount by the property value. Then multiply by 100 to get the percentage. If the result is 80% or lower, your PMI is 0%, which means you don't have to pay PMI.
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Answer:
Effect on income= 1,120,000 - 440,000= 680,000 increase
Explanation:
Giving the following information:
Sanchez Semiconductors produces 400,000 tech computer chips per month.
The variable costs to make the component are $ 1.30 per unit, and the fixed costs are $ 1,200,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $ 1.10 each. If the company chooses to outsource, fixed costs can be reduced by 50%.
Make in house:
Variable cost= 400,000*1.3= 520,000
Unavoidable Fixed costs= 600,000
Total= 1,120,000
Buy= 1.1*400,000= 440,000
