Answer:
$2,554
Explanation:
The computation of value is shown below::-
Assume insurance purchase is N units
= $2,400 - $0.2 per dollar
= $600 - 0.2 M + M
= $600 + 0.8 M
$2,400 - $0.2 M = a - ($600 + 0.8 M) ÷ b
$2,400 - $0.2 M = a - $600 ÷ b - 0.8 ÷ b
now we will equate the situation
-0.2 M = 0.8 M ÷ b
-0.2 = 0.8 ÷ b
b = 4
Now, we will put the value of b to find out the value of a
a - $600 ÷ b = $2,400
a - $600 ÷ 4 = $2,400
a - $150 = $2,400
a = $2,400 + $150
a = $2,550
Now we will find out the a and b by putting the values
= a + b
= $2,550 + 4
= $2,554
Answer:
Objective Theory
Explanation:
The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.
The objective theory is important as it advocates freedom to a fair hearing, freedom of contract, and personal independence or sovereignty.
Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.
A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.
What is discount points?
- Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
- Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
- Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
- Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.
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Answer:
The projected Net Income is $70,784
Explanation:
The Pro- forma income Statement
Working Note:
Variable cost = Sales × 44%
= $585,000 × 44%
= $257,400
EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation
= $585,000 - $257,400 - $187,000 - $51,000
= $89,600
Net Income = EBT × Tax rate
= $89,600 × 21%
= $70,784
