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3 years ago

Why do lenders often require a down payment when credit is used to purchase a good?

Business

1 answer:

kherson [118]3 years ago

4 0

Answer:

see below

Explanation:

A down payment is a lump-sum amount paid a borrower raises when purchasing an asset on credit. The down payment or deposit is paid to the lender and reduces the credit to be extended. Usually, the lender will demand a down payment of up to 20% of the asset's value.

The down payment reduces the risk a lender takes in advancing the loan to the borrower. It reduces the loan amount involved. The down payment shows the borrower is financially stable. If they can raise 20 percent of the amount, it gives the lender confidence that the borrower can repay the loan. A down payment shows the borrower is a low-risk customer

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In a local market, the monthly price of internet access service decreases from $40 to $30, and the total quantity of monthly

deff fn [24]

The answer is : The demand is elastic.

Elasticity =

[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|

[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23

The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.

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3 years ago

The abuse of children is a symptom of _____.

ra1l [238]

Answer:

lack of parental care and training

Hope that helps!

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3 years ago

Read 2 more answers

Frank age 63 is single and provided all of the support for his daughter Anna age 24 and her son Marvin age 6. Neither Anna nor M

allsm [11]

Frank cannot claim Anna or Marvin as a dependent.

Explanation:

Because Frank gives Anna and Marvin every support, support tests are straightforward.

Anna earns revenue in excess of $4200 and can not therefore be requested as dependent. In fact, Marvin does not stay with Frank and can not therefore be stated as dependent.

The income tax credit, EITC or EIC is a bonus to low- and moderate-income employers. To apply, you must fulfill certain criteria and file a tax report, even if you are not obliged to pay a bill. The level of tax you pay is lowered by the EITC and a refund is probable.

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3 years ago

Which statement(s) most directly apply to capitalism? i. there is heavy government regulation of industry. ii. individuals can s

Kisachek [45]

The most directly applied sentence for capitalism is the price and availability of goods are determined primarily by the market. As the market is a free market in the economy.

<h3>What is Capitalism?</h3>

Capitalism is commonly thought of as an economic system in which private actors own and control the property.

According to their own interests, demand and supply freely set market prices in ways that benefit society.

Thus, option D which is iii only is correct.

For further details about capitalism refer to this link:

brainly.com/question/414301

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2 years ago

On January 1, Sway Corporation had 60,000 shares of $10 par value common stock outstanding. On March 17, the company declared a

pychu [463]

Answer:

See below

Explanation:

With regards to the above, the entry to record of March 30 would be;

Debit stock dividends $140,400

Credit common stock dividends distributable $108,000

Credit paid in capital in excess of par $32,400

Calculations;

= 60,000 shares of $10 par value

= $600,000 × Stock dividend

= $600,000 × 18%

= $108,000

Stock dividend = 60,000 shares of $13 market value

= $780,000 × Stock dividend

= $780,000 × 18%

= $140,400

Additional paid in capital = $140,400 - $108,000 = $32,400

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3 years ago