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faltersainse [42]
4 years ago
14

When applying for credit is it preferable to receive a low interest rate or high interest rate

Business
1 answer:
Blizzard [7]4 years ago
4 0

It is preferable to have a low interest rate.

Explanation:

Most common people do not have enough reserves to let the credit accumulate over a high interest rate that they can pay off, neither do they have immediate funds to pay back instantly for the credit.

The regular person needs credit often month by month basis and not more than that.

This means that they should use the cards with the least interest rates as they need less money and they also want to keep it for the less amount of time essentially.

You might be interested in
Industrial Machines needs to purchase a new machine costing $1.25 million. Management is estimating the machine will generate ca
max2010maxim [7]

Answer:

The firm shouldn't purchase the machine because the IRR is less than the required minimum

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calcuator

Cash flow in year 0 = $-1.25 million.

Cash flow in year 1 = $210,000

Cash flow in year 2 to 5 = $350,000

IRR = 8.51%

The firm shouldn't purchase the machine because the IRR is less than the required minimum

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

8 0
3 years ago
The first budget customarily prepared as part of an entity’s master budget is the blank____________ .
Andreyy89

Answer: sales budget

Explanation:

The first budget customarily prepared as part of an entity’s master budget is the sales budget.

Sales budget is simply financial plan, that shows how resources will have to be distributed in order for the predicted sales to be achievable.

4 0
4 years ago
What will you be least likely to be responsible of as part of the accounting team of your organization? A. reconciling accounts
riadik2000 [5.3K]

Accounting is <em>a field that is concerned with the processing, measuring, and communicating of financial information of a company.</em> If you worked in an accounting department, you would most definitely have to reconcile accounts, prepare financial statements, monitor accounting activities, and prepare an investment schedule for the organization.

You will not, however, be expected to (D) develop marketing and advertising strategies. This type of task is usually assigned to the marketing department of a company.  

5 0
4 years ago
A couple thinking about retirement decide to put aside $2,100 each year in a savings plan that earns 7% interest. In 10 years th
Marina86 [1]

Answer:

310,588.5

Explanation:

As is not said we can assume the 2,100 each year to be paid at the end of the year, and the 7% to be used as a compunded anually rate. So let´s first think just about the 2,100, as they are regulary payments, they can be seen as an anuity inmediate, the formula is as follows:

s_{n}=p*\frac{(1+i)^{n}-1 }{i}

where sn is the future value of the regular payments, i is the interest rate and n is the number of payments and p is the amount of regular payment so in this particular case we have:

s_{n}=2,100*\frac{(1+0.07)^{30}-1 }{0.07}

s_{n}==198,367.65

So now let´s think on the gift of 29,000 as it is paid on 10 years, there will remain 20 years with an investment rate of 7% compounded anually. so there we have the classic formula of future value

FV=VP*(1+i)^{n}

where FV is the future value, PV is the present value, i is the interest rate per period, and n is the number of periods. Again in this particular case we have:

FV=29,000*(1+0.07)^{20}

FV=112,220.85

so the total amont will be:

total=198,367.65+112,220.85

total=310,588.5

8 0
4 years ago
A company that is organized by function will group its employees into teams based on what?
Lostsunrise [7]
The correct answer is A because you are going to split the workers up in what type of work they do. 
<span>Hope I helped</span>
4 0
3 years ago
Read 2 more answers
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