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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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Luthan Company uses a plantwide predetermined overhead rate of $22.20 per direct labor-hour. This predetermined rate was based o

nalin [4]

Answer:

The amount of manufacturing overhead cost that would have been applied to all jobs during the period is $279,720

Explanation:

The computation of the amount of manufacturing overhead is shown below:

= Predetermined overhead rate per direct labor-hour × total direct labor-hours

= $22.20 × 12,600 direct labors

= $279,720

Since the predetermined overhead rate is already given in the question, so there is no need to recalculate it and the other items which are mentioned are not relevant for the computation part. Hence, ignored it

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3 years ago

Which of the following firms has a high-performance culture? a. Rexot Bron Inc., a start-up firm that neither focuses on achievi

dsp73

Answer:

"C"

Explanation:

A high performance culture is a set of laid down rules (culture ) that an organization observe to achieve outstanding results (performance ) with the primary aim of getting an edge over competitors. It guides the daily activities of employees.

The four major attributes of a high performance culture are Strong leaders , employees involvement , continuous learning environment and flexibility .

The corporate values of the organization is paramount and every action must be directed towards its achievement.

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3 years ago

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance

Virty [35]

Answer:

Bank reconciliation:

Bank balance Augusts 31 $18,340

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B) Cash account balance $17,650

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3 years ago

Situation I On January 1, 2020, Bramble, Inc. signed a fixed-price contract to have Builder Associates construct a major plant f

Burka [1]

Answer:

$88,920

Explanation:

capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920

Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.

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3 years ago

I have an iPhone 11 pro, and I blocked a user about a week ago but they are still able to call me. I double and triple checked t

coldgirl [10]

Answer:

You should call the place your phone is connected at like metro pcs,at&t,cricket,sprint and report the number

Explanation:They will know what to do

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3 years ago

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