1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BlackZzzverrR [31]
3 years ago
5

Being financially responsible is no easy task for any age, but it is certainly the best choice for everyone to follow. One of th

e first steps to being responsible is to plan a budget for your income and spending This will help you learn to manage your money. Anyone can make a budget plan by listing all fixed expenses for the month, then determining variable expenses, and, finally, planning for miscellaneous expenses. You should know your income-to-debt ratio in order to determine how much money you actually have and how much money you actually spend. It is important to track your spending by making a list and then avoiding impulse purchases. Putting aside some money for savings for emergencies and future goals is crucial to being financially responsible
Another important goal is to use credit wisely and make all payments on time. When borrowing money, you should shop around for the best interest rates and choose wisely by reviewing all the terms and conditions of the loan or credit card. Remember to only charge and borrow what you can afford to repay, not what you are offered in a loan or credit limit. Always use discipline in your borrowing, and be committed to paying back your loans in a timely manner.
You can have control over your finances if you take the right steps. If you do get into trouble with managing your money, there are ways to take back control. There are people and resources to guide you in becoming financially responsible, even if you have made some poor decisions.

OBJECTIVES
Calculate credit card payments at various interest rates.
Identify the three Cs of creditworthiness.
Examine credit scores.
Develop plans for becoming financially responsible.
Compare renting to owning a home.
Before You Begin
Examine the Prompt

Many adults make poor choices about credit and financing. In order to understand smart choices and the results of poor choices, you will complete a research project comparing three people and their circumstances. You will identify, calculate, and project credit-card debt, payments, and mortgage rates. You will write a five hundred word essay comparing the three people, their particular circumstances, and your projected advice.

Directions
Meet Gary. He has a great credit score and little credit card debt, with only two cards and owing $2,000 on each with a 10% interest rate. He has been working at his current job for four years with a steady income.

Meet Greg. He has a good credit score and some credit card debt, with five cards owing $2,000 on each. He has reached the maximum limit on two of them, but one is late, regularly costing him additional late fees. All have a 12% interest rate. He has been working at his current job for a year.

Meet Bob. Meet Bob. He has a bad credit score and high credit-card debt, with seven cards, owing $4,000 on each. He has reached the maximum limit on five of them, but all are late each month, costing additional late fees. All have a 15% interest rate. He has had six jobs in the past two years but has been working at his current job for three months.

Part I.

Assign a credit rating number to each person.
Explain why each person has a certain credit rating.
How can each person improve or maintain that credit rating?
Estimate the monthly credit-card payments for each of these people.
How can each person become more responsible?
Write a plan of improvement for each person.
Part II.

Each person wants to buy a home. Why should each person buy and not rent? Find each one a $200,000 house to purchase, using a local real-estate listing. What would the interest rate be for each? What would the monthly mortgage payment be? Why is each a different amount?

Part III.

Summarize the results of your research, and explain why it is financially responsible to make wise choices, using these three people as examples.

Prompt
Write a five hundred word essay answering all the questions about the three scenarios. Be sure to discuss the creditworthiness of each person, as listed below.

the credit card problems and payments
the suggestions for having better credit
the mortgage and house choices for each
the final summary comparing each person's credit story
Rubric
Business
2 answers:
tensa zangetsu [6.8K]3 years ago
8 0

Answer:

Jesus christ

Explanation:

That was the longest prompt ive ever read

LUCKY_DIMON [66]3 years ago
5 0

Answer:

This is what I put

Gary: score of 650

Greg:440

Bob:220

Explanation:

To improve their credit score they would have to join a credit union , they help because they typically charge lower fees but if the credit score is too bad then even they wont help. First thing would be to pay all the bills on time.  

If Gary payed off his debt in 12 months or 1 year he would have to pay a minimmum$352 a month for 12 months.  

In order for Greg to pay off his he's going to have to pay 888 a month for 13 months in order to pay off his debt but then he a;;so has to pay off his late fees so probably around almost 2 years until he can start working on his credit.  

Bob would probably have to pay 666 a month in his current situation for 5 years in order t pay off his debt but then he also has the late fees so maybe around 6-6.5 years until he can start building his credit.

so  its best for all of them to get rid of all their credit cards but more than 2 is deadly they can work on paying stuff on time.

If they all wanted to buy a home it would be better than renting because at least they wouldn't have to pay every month for rent cost along with the debt they all already owe, but even buying a home is dangerous because if they cant buy it all at once they are in debt on paying for the house along with everything else they are in debt for.

They chose not to pay for everything they were in debt for already at the time the bills were due and because of that its going to cost more than before because the longer you wait the more you will owe, all because they hold off on their payments. hence why it's deadly because again the longer they wait the more money they have to give, leaving them in bad debt and no money to help pay their fees and bills.

You might be interested in
A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec
Orlov [11]

Answer:

Explanation:

                                                Last year           Current year

Selling Price                      10                         10

Varaible Price                5                         6

Contribution Margin               5                               4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method :  first In first out system

Fix Cost                                                                            =     86000

contribution from opening units(6000*5)                            =     30000

Remaining Fix cost that should be Covered from

current year products                                                            =     56000

 

Units to be sold for break-even ( 56000/4)   = 14000

so we have break even units   6000+14000 = 20000

Fix cost                              = -86000

Opening 6000*5              = 30000

Current   14000*4             = 56000

Profit                                   = 0

Break Even using LIFO method : Last in first out

Fix Cost                                                                            =     86000

Break even =  Fix Cost / Contribution margin

Break even =  86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0
3 years ago
Xcel chpter 8 phil is shopping for an annuity that guarantees he cannot outlive the benefits. which of these benefit options wou
N76 [4]
The answer to this question is <span>Guaranteed lifetime withdrawal benefits
in the </span><span>Guaranteed lifetime withdrawal benefits the rider will be allowed to withdraw of invested amount without waiting for the benefir will be annuitized. This type of benefit options will be perfect for people who believe they wouldn't live long enough to see the benefit is fully annuitized. (in most cases, they have previous health concern)</span>
7 0
3 years ago
Upper management of a clothing store in the mall has decided that a good way to motivate employees is to consult with them about
sergey [27]

Answer:

Consider the following analysis.

Explanation:

The manager's assumption is that the employee work only for their own benefits and they need immediate punishment for poor work, intermediation, and minute-level supervision. This proves that he uses Theory X.

The upper management, on the other hand, is trying to initiate consultation with the employees before bringing out any improvement plan in the business process. This type of management style implicitly assumes that the employees are motivated and self-directed. This is Theory Y.

So, the first option should be correct.

Equity theory is something not contextual here. Equity theory works on the reduction of perceived inequality in the input and output of the employees as a means of motivation.

3 0
3 years ago
Globalization is the trend Multiple Choice of the world economy becoming a less dependent system. of the world economy adding mo
VashaNatasha [74]

Answer: Of the world economy towards becoming a more interdependent

system.

Explanation: The process under which the government, people and companies of different nations are coming together to make the world a better place for business is called globalization. Under globalization various tax and tariffs are lowered down by different countries for ease of business and free flow of goods and services making the world interdependent.

8 0
3 years ago
At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total Overhead $702
Arte-miy333 [17]

Answer:

Assebly rate: $ 9.12 per labor hour

Testing rate: $11.43 per machine hour

Explanation:

Assembly Department Testing Department Total

                               $702,000 $786,240 $1,488,240

Direct labor hours        77,000     95,480     172,480

Machine hours             95,500     68,760     164,260

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

<u><em>Assembly rate:</em></u>

702,000 / 77,000 = 9,11688

<u><em>Testing rate</em></u>

786,240 / 68,760 = 11,4347

4 0
3 years ago
Other questions:
  • Joseph purchased 100 shares of abcd growth fund for $10.00 per share for a total investment of $1,000. at the end of one year, h
    14·1 answer
  • In considering the decision to adopt a dog, indicate which of the following is an example of a private cost, a private benefit,
    15·2 answers
  • Yes music is the authorized distributor for products of trompa instruments, a popular manufacturer of trumpets and other brass i
    14·2 answers
  • A university is trying to determine what price to charge for tickets to football games. At a price of ​$24 per​ ticket, attendan
    11·1 answer
  • Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the
    15·1 answer
  • When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at​ $10 an​ hour, the real wage rat
    12·1 answer
  • Important business data that is not known to the public is considered what type of information?
    9·1 answer
  • Studies show that OSHA employees fail to properly inspect and regulate many workplaces, primarily because they do not have _____
    13·1 answer
  • The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is term
    5·1 answer
  • 5 sentences on student wellness
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!