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MAVERICK [17]
3 years ago
15

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owi

ng more than the car is worth, which is called:_______
a. Negative equity.
b. Low monthly payments.
c. Loan preapproval.
d. Low-interest loan.
e. All of these are potential problems.
Business
2 answers:
salantis [7]3 years ago
8 0

Answer:

a. Negative equity.

Explanation:

Negative equity occurs when the market value of an asset being obtained through the loan is less than the amount that is on the loan balance.

For example if a car is being obtained for a loan amount of $1,200, and the market value of the car is $1,000. This is a situation of negative equity.

Negative equity can occur as a result of excessive interest payment as is seen in long term mortgages. When a customer is paying small amount on mortgage over 30 years the value of the house will most likely be lower than the total loan amount that will be paid.

notka56 [123]3 years ago
8 0

Answer: negative equity

Explanation: negative equity is defined as the potential indebtedness arising when the market value of a property, say car, house etc. falls below the outstanding amount of a mortgage secured on it. In simpler terms, it is the situation in which a property is worth less than its mortgage. In scenarios such as this, one would be in negative equity because he or she would owe the creditor (bank) more than they would get if the loan property is sold. There's more risk of negative equity with interest-only mortgages and it is because your monthly payments do not reduce the value of debt owed, but goes towards reducing the interest.

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If you borrow $1500 with a compounding interest rate of 8% for 2 years, that compounds semi-annually. How much will you pay back
mestny [16]

Answer:

1740

Explanation:

1500(1+\frac{8}{100})^2

1500*(\frac{27}{25})^2

= 1749.6

4 0
2 years ago
As the owner of a small business, esma would like to move the sale of her candles from storefronts to the internet. She can read
Inga [223]

Thanks to technology, almost anyone to be global, with two varying results: Small companies can get started more easily but move slower.

<h3>Facts about Internet commerce </h3>
  • Allows for more access to customers from around the world.
  • Increases chances of profitability.

Small companies have smaller catalogues to sell and so can easily get involved in internet commerce. They however, are not as rich as large companies which means that they will not be able to invest enough to move as fast as large companies.

Find out more on internet commerce at brainly.com/question/6586612.

7 0
2 years ago
When an institution wishes to take a large position in a municipal bond issue but does not want its activities to be well known,
e-lub [12.9K]

Answer:

Option C, a municipal securities broker's broker.

Explanation:

Option “C” is correct because these broker acts on the behalf of the client and perform all the transactions without exhibiting their client’s details in the market.  Moreover, the broker maintains the bonds or securities and it focuses on the profit-making aspects. Finally, the broker receives the commission for their service and the client receives the profit or rate of return from the securities.

4 0
4 years ago
Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reaso
maks197457 [2]

Answer:

A) operational excellence

Explanation:

Operational excellence is a business strategy that consists in the constant improvement of all aspects of the organization in order to maintain high standars in every possible way. The idea is to be better than the competition in the long-term.

Walmart, Costco, and Southwest Airlines are engaging in operational excellence when they manage to offer products and services that have reasonable price, while being reliable and high-quality at the same time. The combination of low price, and high quality, is very hard to achieve, and it's a sign that a company is following operational excellence.

6 0
4 years ago
Eunice buys a worm farm. She plans to sell a small carton of worms to people who want to fish for $3. Her fixed costs are $1,201
Evgesh-ka [11]

Answer:

C. 534  units

Explanation:

The formula to compute the break-even point is shown below:

= (Fixed cost) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $3 - $0.75

= $2.25

So, the break-even point would be

= $1,201 ÷ $2.25 per unit

= 534 units

Simply we divide the fixed cost by the contribution margin per unit so that the accurate units can come.

3 0
4 years ago
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