Answer:
2-4-7 has low operating costs
Explanation:
The 2-4-7 bank must be an online bank only. Online-only banks provide banking services, just like traditional banks. However, they offer higher interest rates to their customers as compared to traditional banks.
Online-only banks do not require branches to serve customers; neither do they do not need to hire a large number of employees. Their transactions are done via the internet. An online-only bank, therefore, has low operating costs as it does not pay rent for several branches and has a lean staff. Online banks pass the benefits of low operating costs to customers in the form of higher interest rates.
Online-only banking is a new concept in the banking industry. Online banks are using high interest rates to popularize the concept and attract customers.
Answer:
Her monthly take home amount is $2750. she is not in danger of credit overload as her total debt obligation per month is only $505 which is only 19% of her overall take home
Explanation:
Sarah's annual take home is $ 33,000 , If we divide it by 12 months so her monthly take home amount will be $2750, Her monthly debt obligation are $395 for Car & $110 Credit card payment which sums to $505. so will still have $2245 every month after paying debt obligation.
Answer:
15.44 years
Explanation:
Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:
Excel rate function:
=nper(rate,pmt,-pv,fv)
rate= interest rate=4%
pmt=yearly payment=c
pv=loan oustanding=-39000
fv=the balance after all payments should be zero=0
=nper(4%,3435,-39000,0)= 15.44 years
Financial calculate
PMT= 3435
RATE=4
PV=-39000
FV=0
CPT N=15.44 years
This means a payment of $3,435 per year for 15 years and $ 1,511.40 ($3,435*0.44) in the sixteenth year
Answer: A is not the correct answer
Explanation: i took the test the correct answer is D
Answer:
b. assign the highest cost of capital to Division Z because it is most likely the riskiest of the three division.
Explanation:
The Old Town Industries will assign highest cost of capital to Division Z because it is research and development side of business. The research will incur high cost to the company. Only the research cost which meets certain conditions it will be capitalized as development costs. This Division Z is riskiest and incurs a large amount of expense for planned search of new technologies.
