Answer:
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
Explanation:
We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.
This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.
A type of long term permanent financing for residential construction or large construction projects, that replaces the construction loan is called a takeout loan.
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What is a takeout loan?</h3>
A takeout loan is a method of financing whereby a loan that is procured later is used to replace the initial loan.
More specifically, a takeout loan, or takeout financing, is long-term financing that the lender promises to provide at a particular date or when particular criteria for completion of a project are met.
A take-out loan provides a long-term mortgage or loan on a property that "takes out" an existing loan.
The take-out loan will replace interim financing, such as replacing a construction loan with a fixed-term mortgage.
If the take-out loan is used to finance a rental or income-generating property, the take-out lender may be entitled to a portion of the rents earned.
To learn more about take-out loan, refer
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Answer: $5,000
Explanation:
Per the requirements of qualified plans that permit loans, the maximum amount that an individual can withdraw is whichever is lesser between $50,000 and 50% of their Vested Account Balance.
Vance in this scenario has a vested account balance of $40,000.
50% of that would be $20,000.
That means that he can be loaned $20,000. However, he already has an outstanding loan balance that must be accounted for of 15,000.
Subtracting those figures we have,
= 20,000 - 15,000
= $5,000
The maximum loan that Vance can take from the qualified plan is $5,000
Answer:
Two examples of important things that financial planning skills can help us do are:
- Acquire a strong savings habit
- Set realistic goals
Explanation:
Acquire a strong savings habit: This is achievable when a person has a clear understanding of how much are their expenses and how much is needed to be save in order to acquire capital goods or to construct a fund for unexpected costs.
Set realistic goals: When a person knows how much its income is and has a realistic financial planning he knows what goals are achievable and which are not.
