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3 years ago

Why do lenders use your utilities payment history to approve credit?

1 answer:

8 0

There is more than one reason, but there are two main things they are looking at. They need to see if you are paying on time. The payment history will show if you get behind or not. And because a utility bill is similar to a loan payment, because you have to pay it or you lose your services, they see how responsible you are by checking that. The second major reason they do this is to see what your debt is already. They want to make sure you can afford, with all your bills, to pay them back.

You might be interested in

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i

Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

$PresentValue=\frac{Coupon}{r}$

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = $\frac{170}{0.09}$ = $1,888.89

4 0

3 years ago

Alex owns an event management company. His customer service strategy should______ focus on valuing customers for the growth of t

grigory [225]

Answer:

The correct answer is: "D. Both external and internal".

Explanation:

The only possible answer to fill in the space is letter D because it is reasonable to think that a company should focus both on external and internal values for customers in order to make it grow for both parts. As it is an event management company, it is very important to highligh the external demands and how they come and go with clients, agencies, and subsidiaries, while the company must take care of their internal customers who are more responsable for maintaining their strategy going on properly.

6 0

3 years ago

Answer the next question based on the following price and output data over a five-year period for an economy that produces only

marysya [2.9K]

Answer:

$90

Explanation:

The computation of the nominal GDP for the year 4 is shown below:

= Quantity at year 4 × price of year 4

= 18 × $5

= $90

For determining the Nominal GDP for the year 4 we simply multiply the quantity at year 4 with the price of year 4

Hence, the last option is correct

8 0

3 years ago

Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the

dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units, Selling Price is set at SP = $35

- @ Q = 500 units, Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0

3 years ago

On January 1, 2016, Parker Company issued bonds with a face value of $62,000, a stated rate of interest of 11 percent, and a fiv

nignag [31]

Answer:

Parker Company

a. Amortization Table

Date Interest Discount

Cash Payment Expense Amortization Carrying Value

January 1, 2016 $57,639

December 31, 2016 $6,820 $7,493 $673 58,312

December 31, 2017 6,820 7,581 761 59,073

December 31, 2018 6,820 7,679 859 59,932

December 31, 2019 6,820 7,791 971 60,903

December 31, 2020 6,820 7,917 1,097 62,000

b. The carrying value that would appear on the 2019 balance sheet is:

= $60,903.

c. The interest expense that would appear on the 2019 income statement is:

= $7,791.

d. The amount of cash outflow for interest that would appear in the operating activities section of the 2019 statement of cash flows is:

= $6,820.

Explanation:

a) Data and Calculations:

Face value of bonds = $62,000

Proceeds from the issue = 57,639

Bonds discount = $4,361

Stated rate of interest = 11% paid annually on December 31

Effective rate of interest = 13%

December 31, 2016:

Interest expense = $7,493 ($57,639 * 13%)

Interest payable = $6,820 ($62,000 * 11%)

Discount amortization $673 ($7,493 - $6,820)

Bond value = $58,312 ($57,639 + $672)

December 31, 2017:

Interest expense = $7,581 ($58,312 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $761 ($7,581 - $6,820)

Bond value = $59,073 ($58,312 + $761)

December 31, 2018:

Interest expense = $7,679 ($59,073 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $859 ($7,679 - $6,820)

Bond value = $59,932 ($59,073 + $859)

December 31, 2019:

Interest expense = $7,791 ($59,932 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $971 ($7,791 - $6,820)

Bond value = $60,903 ($59,932 + $971)

December 31, 2020:

Interest expense = $7,917 ($60,903 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $1,097 ($7,917 - $6,820)

Bond value = $62,000 ($60,903 + $1,097)

3 0

3 years ago