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taurus [48]
3 years ago
9

Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?

Business
2 answers:
erica [24]3 years ago
3 0
To make the loan look more attractive and competitive now
marysya [2.9K]3 years ago
3 0

Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?

To make the loan look more attractive and competitive now.

When you apply for a loan, it's important to look at the terms and conditions. Just because the interest is low at the beginning, if not paid off quicker than the full term, it may go up increasing the amount being paid in interest over principle. When a bank offers a low initial interest rate, it's very attractive for a consumer who really needs to the loan to take it almost forgetting or being blind to the fact it will increase astronomically and basically even out to a set rate that's higher from the beginning.

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If a seller needs to net $50,000 after the sale, how much must the real estate sell for if the selling costs include a 7% commis
Masja [62]

Answer:

$55,054

Explanation:

Calculation for how much must the real estate sell for

Sales price =($50,000 + 1,200)/(100% - 7%)

Sales price=$51,200/0.93

Sales price =$55,053.76

Sales price =$55,054 (Approximately)

Therefore the amount that the real estate must sell for if the selling costs include a 7% commission and $1,200 in other expenses will be $55,054

4 0
3 years ago
Dynamo Corporation manufactures toasters. Each toaster comes with a 5-year assurance-type warranty. The toasters sell for $50 ea
Leno4ka [110]

Answer:

1.Dr Cash 25,000

Cr Sales revenue 25,000

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3.Journal entry for actual warranty expense

Dr Warranty liability 500

Cr Cash 500

Explanation:

Preparation of Dynamo's journal entries related to the sales and warranty in Year 1.

1.Dr Cash 25,000

Cr Sales revenue 25,000

(50*500)

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3. Dr Warranty liability 500

Cr Cash 500

7 0
3 years ago
A business usually becomes listed in the Fortune 500 during its _______ stage.
irga5000 [103]

its NOT D!!! Thanks for misleading me, after studying the material I found the correct answer to be A! I just took the PF keys to success test, trust me

5 0
3 years ago
Read 2 more answers
What's the difference between a brand-name and a generic product? A. The company that sells the product B. The side effects of t
katen-ka-za [31]

Answer:

A

Explanation:

The quality should be about the same.

The social responsibility should also be about the same.

There shouldn't be side effects of most products. If you are speaking of medications, there really ought to be the same side effects with the same severity and the same statistical occurrences.

The only difference is the company selling the product.

There have been exceptions to this where different "fillers" were used in the generic brand and the side effects were different and more severe. I've only heard of one case however and I cannot remember what it was. Manufacturers were careful not to let it happen again.

4 0
4 years ago
An example of communicating category membership by relying on the product descriptor is ford's positioning of its freestyle auto
hoa [83]
That statement Is true

In marketing, product descriptor refers to a structured format that displayed some information about a specific product.
In this case, ford tried to create a unique product descriptor such as "sports wagon" to tell its consumers that their product has the characteristic of a sport and a wagon
7 0
4 years ago
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