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3 years ago

All of the following are true regarding the guaranteed insurability rider except

Business

1 answer:

docker41 [41]3 years ago

7 0

Answer:

Option (C)

Explanation:

Guaranteed insurability rider is a person who is responsible to sell extra life insurances to the owners who already have life insurance. They visit the clients and attract them to buy a new one. Similarity, the rider usually charge premiums, but if an owner of life insurance is ill or seriously injured only then no additional premium is charged.

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Karin Company's loan is due on July 1, 2018. What conditions must Karin meet (at a minimum) so that the note can be classified a

Sindrei [870]

Answer: D. A & C

Explanation:

A long term liability is one that is due to be paid in a period longer than a year. The loan is due in less than a year so the only way to classify it as a long term liability is to make it a loan that will extend past a year. This can be done through refinancing which is to replace the current loan with another loan.

Karin's company therefore would need to demonstrate that the obligation can be refinanced on a long-term basis by them and they must also have the intention to do so as well.

8 0

3 years ago

A brewery produced regular beer and a low carb "light beer". Steady Customers of the brewery buy 10 units of regular beer and 15

Svet_ta [14]

Answer:

Regular Low Carb Total

a) Units to be produced 20 22 42

(to minimize total production cost)

b) Total production costs $704,000 $1,150,000 $1,854,000

Explanation:

a) Data and Calculations:

Regular Low Carb

Monthly customers demand 10 15

Ratio of customers demand 40% 60%

Cost per unit $32,000 $50,000

Revenue per unit 120,000 300,000

Contribution per unit $88,000 $250,000

Total required revenue = $9,000,000

With 20 additional units of beer, total units produced = 45 (25 + 20)

To minimize production costs and generate a total revenue of $9,000,000, more of the units that cost less should be produced. Units should be produced according to the following ratio:

Regular Low Carb Total

New Production and Sales units 20 22 42

Total production cost = $640,000 $1,100,000 $1,740,000

($32,000 * 20) ($50,000 * 22)

Total revenue = $2,400,000 $6,600,000 $9,000,000

($120,000 * 20) ($300,000 * 22)

To achieve a minimum revenue of $9,500,000,

New production units 22 23 45

Total production cost = $704,000 $1,150,000 $1,854,000

Total revenue = 2,640,000 6,900,000 9,540,000

3 0

3 years ago

Home loans typically involve "points," which are fees charged by the lender. Each point charged means that the borrower must pay

nirvana33 [79]

Answer:

Ans. The effective annual interest rate charged on the loan is 12.99% effective annually. (Please see the attached excel spread sheet)

Explanation:

Hi, attached is the amortization table that I made for this case. Notice that there is a yellow and green cell, the yellow one is the result of using the "IRR" function of MS Excel which provides an effective monthly rate, since the payments are made every month, then we have to transform that monthly effective rate into an effective annual rate, this is the formula to use.

$EffectiveAnnual=(1+EffectiveMonthly)^{\frac{1}{12} } -1$

That is:

$EffectiveAnnual=(1+0.012267477)^{\frac{1}{12} } -1=0.12986448$

Which we round to 12.99% effective annually.

Finally, notice that I didnt use the payments to find the effective rate, I used the cash flow, that was because you didn´t receive all the 100K (the fee, remember?), you received $98,000.

Best of luck.

Download xlsx

3 0

3 years ago

What is a competitive market? A. a market in which a good can be bought and sold at the same price B. a market in which a good

Wittaler [7]

Answer:

The correct answer is letter "A": a market in which a good can be bought and sold at the same price.

Explanation:

Competitive markets are those with large numbers of producers fighting against each other to fulfill consumers' needs. In these markets, the producers and consumers cannot determine the price of the goods or services being traded. Both <em>participants are price-takers</em> which imply they will come to a point in which the price level offered by producers and desired by consumers will be equal.

5 0

3 years ago

Jenny wants to open a savings account to begin saving to buy a house. Which institution will most likely provide her with the be

soldi70 [24.7K]

The answer is B) Credit Union

3 0

3 years ago

Read 2 more answers