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3 years ago

Why do housing lenders charge more interest up front?

1 answer:

7 0

Why do housing lenders charge more interest up front? More interest is charged up front because the outstanding balance of the loan is higher. As time passes and the loan starts getting paid down, the amount of interest that is paid to the lender also goes down. If you look at a mortgage statement it appears the first few years are all mainly interest because the loan is much higher. The more time you spend paying your home loan, less money will go to interest.

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Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply A

ch4aika [34]

Answer:

The demand location where demand is unmet is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

Explanation:

Solution

From the example given, we solve for which demand location will have an unmet demand

Now,

The maximum quantity that can be shipped from Allentown to Erie is 100.

The Maximum quantity that can be shipped from Harrisburg to Cleveland is 175

While,

The Maximum quantity that can be shipped from Harrisburg to Dayton is 175

Hence, in case we want an solution optimum to get the required demand as many as possible with the supply given and with a low costs, then we need to find the optimum solution.

By applying a least cost method called greedy, we need to remove our least costing node and then provide minimum of demand and supply unit a present to each cell.

Thus,

The first least cost is Allentown to Dayton.

From Allentown to Dayton 100 units. Next least cost is Philadelphia to Erie.

From Philadelphia to Erie 150 units. Next least cost is Harrisburg to Erie.

From Harrisburg to Erie 25 units. Next least cost is Harrisburg to Dayton.

From Harrisburg to Dayton 75 units. Next least cost is Harrisburg to Cleveland

From Harrisburg to Cleveland 75 units.

So, for the optimum solution, the right choice of answer will be

From Allentown to Erie = 0 units

From Harrisburg to Cleveland = 75 units

From Harrisburg to Dayton = 75 units

Therefore, The demand location where demand is unmet is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

6 0

3 years ago

What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons

Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

Price of stock=Do (1+g)/(k-g)

Do - dividend in the following year, K- requited rate of return , g- growth rate

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0

3 years ago

Billy accepted a job at a company that specializes in providing money for short-term retail lending. where did he go to work?

Harlamova29_29 [7]

A credit card company

3 0

3 years ago

How would you characterize Semler's early leadership Style according to the article Leadership That GetsResults? Explain?

horrorfan [7]

Answer:

Semler's early leadership Style was the coercive one. He expected a lot from his employees believe in micromanaging his team. He always do overtime and expects the same from his employees/team as well.

Explanation:

Semler's early leadership Style showed that he wanted immediate success and be bossy in terms of selecting and firing the employees.

3 0

3 years ago

A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li

Stolb23 [73]

Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.

Explanation:

A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.

Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.

A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.

6 0

4 years ago