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4 years ago

All insurance is based on a principle called

1 answer:

3 0

<span>All insurance is based on a principle called division of risk,this is based on how much risk the ensurer estimates the insured's coverage to be because the riskier the opportunity ( bad health ,area the home is in)the higher the premium cost.</span>

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In a country where only two goods are produced and consumed, the production and consumption of Good X results in external benefi

Fudgin [204]

Answer:

Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Explanation:

Good X: Too Little

Good Y: Too Much

8 0

3 years ago

Kkenneth caplan is a salaried employee who normally works a 371⁄2-hour week and is paid a weekly salary of $675.00. the agreemen

Natali [406]

The gross pays is 675.00

4 0

3 years ago

7. Another example of opportunity cost is a company's cost of capital. Suppose a manufacturer wants to add

vredina [299]

Answer:

You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.

Explanation:

alternative 1, build and sell microwave ovens:

initial outlay = $500,000

net cash flow per year = $225,000 - $200,000 = $25,000

alternative 2, invest in US securities:

investment = $500,000

net cash flow per year = $500,000 x 10% = $50,000

Opportunity costs are the benefits lost or extra costs resulting from choosing one activity or investment over another.

If you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000 = -$25,000.

Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000 = $25,000.

6 0

3 years ago

Fabian was finding it difficult to acquire a credit card that would suit his needs. He checked his credit report to determine wh

shusha [124]

Answer:

irregular and missed loan payments

Explanation:

Missing and missed loan payments cause one to have a poor credit score. A credit score is a numerical representation of an individual or institution's debt worthiness. A high credit shows that the individual is a trusted borrower.

A high credit score comes about if one has a history is repaying his or her obligation promptly. The individual does not skip on their regular installments repayment. Lending institutions use borrowing history to predict how a borrower is likely to behave if credit is advanced to them. A high credit score shows that the borrower is unlikely to default to his repayment.

4 0

3 years ago

A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down

Alex73 [517]

Answer:

The effective annual rate of interest on the additional $25,000 borrowed on the first loan is 12.95%

Explanation:

the loan amount is $250,000 and the period is 20 years.

down payment of $50,000 and the interest rate is 6% per annum

the loan amount = $250,000 - $50,000

= $200,000

period = 20*12

= 240 months

rate = 5%/12

= 0.4167% per month

monthly payment = $1,319.91

difference between the payments in 1 and in 2 = 1611.97 - 1319.91

= $292.06

additional down payment is $25,000

down payment of $25,000 and the interest rate is 6% per annum

the loan amount = $250,000 - $25,000

= $225,000

period = 20*12

= 240 months

rate = 6%/12

= 0.5% per month

monthly payment = $1,611.97

difference between the payments in 1 and in 2 = 1611.97 - 1319.91

= $292.06

additional down payment is $25,000

the effective annual rate = [(292.06/25000)*12]*100

= 12.95%

Therefore, The effective annual rate of interest on the additional $25,000 borrowed on the first loan is 12.95%

8 0

3 years ago