All categories

3 years ago

What is the advantage of a variable-interest loan?

Business

1 answer:

Maksim231197 [3]3 years ago

5 0

Answer:

Borrower can capitalize on a reference rate decrease

Explanation:

Variable interest rate is the floating interest rate, which changes with change in the interest rate given by central bank. It is not fixed it can vary. It might be increased or decreased time to time.

As a borrower Increase in interest rate will result in loss because due to variable nature we need to pay more interest and decrease in interest rate will result in profit because due to variable nature we need to pay less interest

You might be interested in

In 2020, the Merkel Company had revenues of $2,600,000 and costs of $2,100,000. During 2021, Merkel will be introducing a new pr

Leona [35]

Answer:

$88,000

Explanation:

We know that

The operating profit = Revenues - cost

= $2,600,000 - $2,100,000

= $500,000

If there is increase, so the operating profit would be

= Revenues - cost

where

Revenues = $2,600,000 + $260,000

= $2,860,000

Cost = $2,100,000 + $172,000

= $2,272,000

So, operating profit is

= $2,860,000 - $2,272,000

= $588,000

So, the increase in operating profit would be

= $588,000 - $500,000

= $88,000

6 0

3 years ago

Harvey buys a used Jet Ski from Taylor's Water Sports. Harvey takes the Jet Ski to the river and discovers that it doesn't work.

joja [24]

Answer:

The correct answer is option A

a. cure the defect.

Explanation:

A problem that can be corrected based on the agreed terms and conditions by a seller or buyer is a curable defect.

6 0

3 years ago

A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries

KIM [24]

Answer:

Adaptation of industrial products is the correct answer.

Explanation:

5 0

3 years ago

Moe is an average worker stuck on a team of complacent workers. Nick is an innovator who produces triple the amount of the avera

VLD [36.1K]

Answer:

Wyatt

Explanation:

High outcome interpendence is a concept that encourages cooperation between members on a team. It shows that if a team wins all members will benefit, and if the team fails all members will be adversely affected.

In this scenario Wyatt who is a slacker in the team of Nick will stand to gain more.

In a high outcome interpendence scenario Nick will be forced to improve on the performance of Wyatt in order to meet team objectives.

The other average workers will only gain a little from increased cooperation.

5 0

3 years ago

The Fremont Company uses the weighted-average method in its process costing system. The company recorded 32,500 equivalent units

yuradex [85]

Answer:

23,000 idk really im guessing

Explanation:

3 0

2 years ago