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pochemuha
3 years ago
9

Mike has saved $6,000 for a down payment on a car. He qualifies for two car loans. One has a 10% interest rate that does not req

uire a down payment; the other has a 15% interest rate and requires a $5,000 down payment. Mike chooses the first loan and does not make a down payment because he would like to reduce the total cost of the loan as much as possible. Evaluate Mike's decision.
Select the best answer from the choices provided.
A. Mike's decision reduced the total cost of his loan as much as possible because the first loan has a lower interest rate.
B. Mike's decision reduced the total cost of his loan as much as possible because making a down payment would have increased the amount accruing interest.
C. To reduce the total cost as much as possible, Mike should have made a down payment on the first loan even though it was not required.
D. To reduce the total cost as much as possible, Mike should have chosen the second loan even though the interest rate was higher.
Business
1 answer:
adoni [48]3 years ago
5 0
Let's assume the car costs $15,000 and it takes 3 years to pay it.
For option A, the total amount to be paid after applying interest is $19965.

For option B, the total amount to be paid after taking out the down payment and applying interest is $20208.75.

The answer is
<span>A. Mike's decision reduced the total cost of his loan as much as possible because the first loan has a lower interest rate.
</span>
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A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by
lilavasa [31]

Answer:

Customer

Explanation:

In customer departmentalization, departments are basically separated from each other based on the types or groups of customers that needs to be handled or dealt with. For instance, customers can be classified under types such as, bulk purchasing or wholesale customers, retail customers, etc.

To handle them in a better way each group of customers needs different tactics and strategies. Therefore, customer deparmentalization serves the purpose of the firm that is organized on the basis of retail customers and wholesame customers.

3 0
4 years ago
Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.
kenny6666 [7]

Answer and Explanation:

The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods

While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time

Based on this, the classification is as follows

1, Economics of scale as the output rises that declines the LAC so automatically it goes downward

2. economics of scope

3 0
3 years ago
EB7.
egoroff_w [7]

Answer:

$4,228,125

Explanation:

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= Estimated production in a next year × required direct labor per hour × labor rate per hour

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5 0
3 years ago
TT TOYS manufactures toys. The company recently started buying paint for its toys from a Chinese firm. This Chinese company is p
snow_lady [41]

Answer:

The correct answer is Supply Chain

Explanation:

TT toys have recently started buying paint from a Chinese company to complete the final product. The Chinese company is part of the supply chain because it is helping TT toys to complete the final product. The Chinese company is providing a resource, and any operation which acts as a source, resource, or information to complete a product is a part of a supply chain management.

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