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3 years ago

What is a common mistake made in budgeting?

Business

1 answer:

pishuonlain [190]3 years ago

7 0

Answer:

B. Budgeting for financial goals or savings last

Explanation:

While preparing a budget, someone makes mistakes. The standard errors include but not limited to-

1. leaving things (gifts, haircut);

2. Not tracking the spending category (underestimating expenses);

3. Not preparing the budget in writing (guessing the costs);

4. Budgeting for financial goals or savings last (After spending throughout the month, thinking about the savings).

Therefore, options A and C are not the correct choices. B is the right option.

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You are looking at a one-year loan of $12,000. The interest rate is quoted as 8.4 percent plus two points. A point on a loan is

Debora [2.8K]

Answer:

Explanation:

Mortgage rates are influenced by many different factors including demand from homebuyers and homeowners for new loans, current economic conditions, inflation, and demand from investors to buy mortgage loan debt

Mortgage interest rates have a very significant impact on the overall long-term cost of purchasing a home through financing. On the one hand, mortgage borrowers are seeking the lowest possible rates; on the other, mortgage lenders must manage their risk through the interest rates they charge. The lowest mortgage interest rates are only available to borrowers with the most solid finances and stellar credit histories.

While the financial health of borrowers affects how good an interest rate they can get, larger economic factors and government financial policy affect the whole mortgage rate universe. You can boil it down to these five important factors. All represent basic rules of supply and demand in one form or another. It's a little technical, but learning these principles will give you a good way to think about what you're paying now and what could be coming

Answer a.

Effective Annual Rate of a loan is 8.92%

Answer b.

Effective Annual rate R is 12.27%

Answer is not affected by Loan amount as certain percentage of loan that is deducted as points.

Explanation:

Answer a

Points deducted = 2 or 2%

April = 8.4%

Monthly rate (i)= 8.4%/12= 0.007

Months in a year = 12

Effective Annual Rate of a loan =( (1+(i/(1-points)))^months in year)-1

((1+(0.007/(1-2%)))^12)-1

=0.08916311096 or 8.92%

So Effective Annual Rate of loan is 8.92%

Answer b

quoted interest rate = 11.4%

Monthly rate (i)= 11.4%/12=0.0095

Months in year = 12

points deducted= 2 or 2%

EAR of loan =((1+(i/(1-points))) ^months in year)-1

((1+(0.0095/ (1-2%))) ^12)-1

=0.1227334817 or 12.27%

Answer is not affected by Loan amount as certain % of loan is deducted as points.

5 0

4 years ago

The Easy Pack Company includes one coupon having no expiration date with its deluxe snack pack. Upon return of 10 coupons, Easy

Alinara [238K]

Answer:

premium liability (coupon oustanding) $ 1,500

Explanation:

We will recognize a liablity based on expected coupon redemption of 10%:

Sold 1,000,000 deluxe snack = 1,000,000 coupon

from this we expect 10% will be redeem: 1,000,000 x 10% = 100,000

Then, calculate the cost that this coupon will generate:

Thre will be 100,000 redeem coupons which, every 10 is traded for a 1.50 silver chip clip:

100,000 / 10 x $ 1.50 = $ 15,000

For the sales of we have a premium liablity of 15,000

premium expense 15,000

premium liaiblity 15,000

We also purchase this silver chip clip:

Premium Inventory 15,000

Cash 15,000

During the year, we adjust for the chips clips distributed:

9,000 x $ 1.50 = 13,500

This decreases both, the liablity and the premium inventory.

Premium Liability 13,500 debit

Premium Inventory 13,500 credit

Adjusted year-end balance:

15,000 - 13,500 = 1,500

3 0

3 years ago

Population growth: Suppose the world population today is 7 billion, and sup- pose this population grows at a constant rate of 3%

Alika [10]

Given Information:

Current Population = P₀ = 7 billion = 7x10⁹

Growth rate = r = 3 %

Period = t = 100 years

Required Information:

(a) Population after 100 years = ?

(b) Population after t = 0, 1, 2, 10, 25, 50 years = ?

Explanation:

The human population growth can be modeled as an exponential growth,

$P = P_{0} e^{rt}$

where P₀ is the current population, r is the growth rate and t is the time period

(a) What would the population equal 100 years from now?

$P = 7x10^{9} e^{0.03*100}$

P = 140.6x10⁹

(b) Compute the level of the population for t = 0, t = 1, t = 2, t = 10, 25, and t =50

t = 0

P = 7x10⁹e⁰

P = 7x10⁹

t = 1

P = 7x10⁹e^0.03*1

P = 7.213x10⁹

t = 2

P = 7x10⁹e^0.03*2

P = 7.423x10⁹

t = 10

P = 7x10⁹e^0.03*10

P = 9.45x10⁹

t = 25

P = 7x10⁹e^0.03*25

P = 14.82x10⁹

t = 50

P = 7x10⁹e^0.03*50

P = 31.37x10⁹

Attached as image

5 0

3 years ago

A minor has the legal right to repudiate

yan [13]

Answer:

any individual under the age of 18 years. ... This rule is subject to several types of contracts which a minor will be bound by, and his right to repudiate such contracts.

8 0

3 years ago

______ strategies include things like advertising, public relations, cold calling, direct mail, and Internet marketing.

ratelena [41]

Don't trust those link my guy

6 0

3 years ago