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2 years ago

What trade offs do you use when you use credit

1 answer:

5 0

When using credit, you are giving up spending in the future to spend money now. This trade off involves costs (interest). So borrowing money from your future to buy now, will cost you more in the long run that paying cash.

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A _____ is targeted to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repa

Andrej [43]

It would be <span>Subprime mortgage loan.
Hope this helps! :D</span>

3 0

3 years ago

An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the compan

zysi [14]

Answer:

Pay the claim and the accident occurred during the grace period

Explanation:

Grace period is the period or the set length of the time after the due date during that the payment is to be made without any penalty by the insurer or the person.

The grace period mostly is of 15 days and it is usually involves in the insurance contact and the mortgage loan.

So, in this case, the insurer forget to pay the premium but on march 19, she met with an accident and broke her leg, then the insurance company will be paying the claim as the accident happened during the grace period.

3 0

3 years ago

Which principle of design indicates that elements that represent the same idea or category should be placed together?

guapka [62]

Which principle of design indicates that elements that represent the same idea or category should be placed together? D. Alignment

When we align design ideas, we are putting different ideas together that have an "invisible" connection between the ideas. When we align elements that go together, there is an organization within the structure that makes the work and design flow smoothly. It's important to know what and why different pieces need to be aligned and how to organize them.

4 0

2 years ago

Read 2 more answers

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and

Kobotan [32]

Answer:

Min 2M + 3B

Explanation:

Data provided in the question

Let us assume M denotes the making units

B denotes the buying units

So,

Making cost per unit = $2

And, the buying cost per unit = $3

And, the total number of units required = 4,000 units

Based on the above information, the objective function is Min 2M + 3B.

This indicates the minimum total cost

Hence, the correct option is A.

7 0

2 years ago

Calculate the opportunity cost of capital (WACC) for a firm with the following capital structure: 53% in debt, 15% in preferred

tamaranim1 [39]

Answer:

The WACC is 8.75%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock.

The formula for WACC is,

WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component in the capital structure or value of each component as a proportion of total assets

r represents the cost of each component

we take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)

The weight of common equity = 1 - (0.53 + 0.15) = 0.32 or 32%

The WACC is:

WACC = 0.53 * 0.0712 * (1 - 0.29) + 0.15 * 0.109 + 0.32 * 0.1387

WACC = 0.0875 or 8.75%

7 0

2 years ago