A purchase made with no planning or research is a(n) _

Which of the following statements are TRUE about credit scores?

Elina [12.6K]

They affect your life

3 0

3 years ago

Read 2 more answers

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

8 0

3 years ago

If the federal government or a state government brings a criminal lawsuit against a defendant for the alleged commission of a c

Nat2105 [25]

Answer:

Procedural due process.

Explanation:

Procedural due process is a doctrine that requires government officials to follow fair procedures before depriving a person of life, liberty, or property. Procedural due process is required by the Due Process Clauses of the Fifth and Fourteenth Amendments of the United States. When the government seeks to deprive a person of one of those interests, procedural due process requires at least for the government to afford the person notice, an opportunity to be heard and a decision made by a neutral decision maker. The rights that apply equally to civil due process and criminal due process are:

An unbiased trial.
Notice of the proposed action and the grounds asserted for it.
The opportunity to present reasons for the proposed action not to be taken.
The right to present evidence, including the right to call witnesses.
The right to know the opposing evidence.
The right to cross-examine adverse witnesses.
A decision based only on evidence presented.
Opportunity to be represented by counsel.
A requirement that the tribunal prepare a record of the evidence presented.
A requirement that the tribunal prepare written findings of fact and the reasons for its decision.

Not all the above rights are guaranteed in every instance. At minimum, a person is due only notice, an opportunity to be heard and a decision by a neutral decision maker. Courts use tests to decide if a person should be guaranteed any of the procedural aforementioned rights.

5 0

3 years ago

List at least 6 things your credit card company must clearly disclose to consumers.

never [62]

It is important to review the credit card disclosure for information on APRs, Penalties, Grace periods, Minimum financing charges, Calculation methodologies, and Fees.

An explanation of all the fees, charges, interest rates, and conditions that a consumer can encounter when using the credit card is contained in a credit card disclosure. The legislation requires disclosure of this information by organizations that provide credit cards. The disclosures on credit cards offer clear information about costs and charges. They also encourage rivalry. To allow consumers to evaluate credit cards more effectively, it is legally necessary of all credit card companies to give the same price information. They can pick the one that better serves their tastes in terms of price.

The interest rate that a client will pay on outstanding balances is the most obvious example of a cost listed on a credit card disclosure. Basic elements like the monthly payment deadlines will also be covered in the disclosure.

Learn more about Credit Card here:

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8 0

1 year ago

Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest

alexira [117]

Answer and Explanation:

The journal entries are shown below;

a. Investment Dr $37,282

To Cash $37,282

(being the investment in bonds is recorded)

b.

Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400

Investment $91

To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491

(Being the first interest payment is recorded)

5 0

3 years ago

A purchase made with no planning or research is a(n) __ buying decision.