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Katen [24]
4 years ago
8

Grant has avoided applying for credit cards or taking loans. He only uses his savings to pay for purchases. What is the most lik

ely result of his choice?
He will not be able to buy a house or car.
He will not have any debt to pay back.
He will not be able to buy expensive things.
He will not have any money for emergencies.
Business
2 answers:
adelina 88 [10]4 years ago
5 0

Answer:

C he will not be able to buy expensive things

Explanation:

stellarik [79]4 years ago
4 0
He will not be able to buy expensive things. Hope it helps :)
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Mike is looking for a loan. He is willing to pay no more than an effective rate of 8. 000% annually. Which, if any, of the follo
Alexeev081 [22]

The Loan condition of Loan X and Loan Y will meet the effective rate of 8.00% criteria of Mike.

Computation:

Given,

Effective interest rate =8% (i_{c})

Nominal interest rates:  (r)

Loan X =7.815%, compounded semiannually (m=2)

Loan Y: 7. 724% nominal rate, compounded monthly (m=12)

Loan Z: 7. 698% nominal rate, compounded weekly (m=52)

The formula of the effective interest rate will be used:

i_{c}=(1+(\frac{r}{m})^{m}-1)

For Loan X:

i_{c}=(1+(\frac{r}{m})^{m}-1)

i_{c}=(1+(\frac{0.07815}{2})^{2}-1)

i_{c}=0.07958 \:0r\: 7.968\%

As the effective interest rate of Loan X is lower than the actual effective interest rate. Therefore, loan X meets the criteria of Mike.

For Loan Y:

i_{c}=(1+(\frac{r}{m})^{m}-1)

i_{c}=(1+(\frac{0.07724}{12})^{12}-1)

i_{c}=0.08003 \:0r\: 8.003\%

As the effective interest rate of Loan Y is greater than the actual effective interest rate. Therefore, loan Y will not meet the criteria of Mike.

For Loan Z:

i_{c}=(1+(\frac{r}{m})^{m}-1)

i_{c}=(1+(\frac{0.07698}{52})^{52}-1)

i_{c}=0.07996 \:0r\: 7.996\%

As the effective interest rate of Loan  Z is lower than the actual effective interest rate. Therefore, loan Z meets the criteria of Mike.

Therefore, in reference to the computation of the effective interest rate of individual loans. The correct option is b. X and Z.

To know more about the effective interest rates, refer to the link:

brainly.com/question/2602223

5 0
3 years ago
An engineering graduate plans to buy a home. She has been advised that her monthly house and property tax payment should not exc
dimaraw [331]

Answer:

$83,107.20

Explanation:

Amount available for monthly house payment = [$ 2000 * 35% ] - $ 150

= $700 - $150

= $550

Effective rate per month = 6.95% / 12 months = 0.00579 = 0.579%

No of periods = 30 years * 12 months = 360 months

Present Value = Amount available for monthly house payments * [P/A,0.579%,360]

[P/A,0.579%,360] =[(1 + i)^n - 1] / [( 1 + i)^n * I]= [(1 + 0.00579)^360 - 1] / [( 1 + 0.00579)^360 * 0.00579]

P/A,0.579%,360 = [7.99158 - 1] / [ 7.99158 * 0.00579]

P/A,0.579%,360 = 6.99158 / 0.04627

P/A,0.579%,360 = 151.104

Present Value = Amount available for monthly house payments * [P/A,0.579%,360]

Present Value = $550 * 151.104

Present Value = $83,107.20

Thus, the max amount she can par for the house is $83,107.20

6 0
3 years ago
A firm with no debt has 200,000 shares outstanding valued at $20 each. Its cost of equity is 12%. The firm is considering adding
Kipish [7]

Answer:

Option (C) is correct.

Explanation:

Given that,

No. of shares = 200,000

Market value per share = $20 each

Tax rate = 34%

Debt amount = $1,000,000

Market value of firm:

= Market value of equity + (Tax rate × Debt)

= (No. of shares × market value per share) + (Tax rate × Debt amount)

= (200,000 × $20) + (0.34 × $1,000,000)

= $4,000,000 + $340,000

= $4,340,000

= $4.340 million

The firm be worth after adding the debt is $4.340 million.

7 0
3 years ago
What privacy issues are most important to small businesses
seraphim [82]

Answer:

Disclosure of plans and projections to secure loans.

Explanation:

Essentially, businesses present plans of ideas in proposal so as to secure loans from both financial and nonfinancial institution. such businesses are at risk to lose business ideas to individuals who come across this document if the business idea is not protected by law.  

This may also lead to legal procedures too early which may stifle the funds of the organization.

8 0
3 years ago
A property buyer should object to any defects in the title to the property A) within one year of the transfer of title. B) befor
Zolol [24]

The correct answer is B) Before acceptance of the deed.

Explanation:

The deed is a legal document that ratifies the ownership of a property; in this way, the document is used in the process of buying a property to show the buyer is the new owner. Besides this, once the deed is accepted and signed the property does not belong to the original owner, and therefore, she/he has not any responsibility related to the title. This means after the deed the buyer cannot object any defects in the title. Thus, any objections or new conditions in the process of buying the property should occur before acceptance of the deed.

8 0
3 years ago
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