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3 years ago

Prompt Why is it important to eliminate debt as soon as possible? Read More >>

Business

2 answers:

stich3 [128]3 years ago

7 0

Explanation:

You don't make the decisions about your finances until you have an outstanding debt; your creditors do. You determine how much you are charging for charge it. In some situations, you can increase the interest rate and the minimum payment and you can change your spending to suit it for less than two months.

You Should try to clear out the debt as quickly as possible, but not merely because it saves you money. The side effects of debt will influence other crucial aspects of your life so you don't make more profit and get what you want.

You exude confidence, however once you are out of debt. "You are appealing to people,". "And what do you guess? You draw money instead. So get out of your debt then hold out your debt, if you ask me, the quicker the better.

choli [55]3 years ago

3 0

Important to eliminate debt as soon as possible

Explanation:

1.Because the longer you hold on to your debt, the more interest you will have to pay, which means overall you will pay less than if you pay down the debt quicker.

2.The closer your credit cards and loans are to the limit, the lower your score will be. A bad credit score can cost you thousands of dollars a year in higher interest rates, making it harder to escape from your debt trap. ... Better interest rates on any future loans. Lower insurance premiums.

3.Paying off your credit card slowly typically will not boost your credit scores. The two most important factors affecting your credit scores are: Payment history: Always pay your credit card payment on time. Credit utilization rate: Don't use more than 30% of your available credit.

4.Reasons Debt Is Bad for You

Encourages You to Spend More Than You Can Afford. ...
Costs Money. ...
Borrows From Your Future Income. ...
High Interest Rate Debt Causes You to Pay More Than the Item Cost. ...
Keeps You From Accomplishing Your Financial Goals. ...
Debt Can Keep You From Owning a Home. ...
It Can Lead to Stress and Serious Medical Problems.

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3 years ago

Rachel's Designs has 1,800 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining

Liono4ka [1.6K]

Answer:

Out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

Explanation:

Given the information:

Rachel's Designs has 1,800 shares of 5%, $50 par value

The company plans to pay total dividends of $15,000 in 2021

For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate

= 1,800*$50*5%

= $4,500

Since in 2019 and 2020 the dividend is not paid

The dividend arrears for 2019 and 2020 would be:

= $4,500 + $4,500

= $9000

=> The total dividend is:

= $4,500 + $9000

= $13,500

So, for the common stockholder, it is

= $15,000 - $13,500

= $1500

Hence, out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

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2 years ago

You are the production head and you decide to introduce a new product in your production line. Market survey reveals that price

Ne4ueva [31]

Answer:

the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units = Rs35,960

Explanation:

output variable costs fixed costs total revenue profits

0 00 620 0 (620)

100 280 620 4,000 3,100

200 480 620 8,000 6,900

300 640 620 12,000 10,740

400 820 620 16,000 14,560

500 1,040 620 20,000 18,340

600 1,300 620 24,000 22,080

700 1,620 620 28,000 25,760

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3 years ago

Suppose a manufacturing plant purchased a new heating system in December, 2015 and, after installing and testing the equipment,

garri49 [273]

Answer:

Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:

Depreciation Expense - Debit $ 5,000

Allowance for Depreciation - Credit $ 5,000

Explanation:

The depreciation charge for the year is calculated as follows:

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Salvage Value $ 5,000

Net Depreciable value $ 50,000

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Annual Depreciation expense(50000/5) $ 10,000

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2 years ago