All categories

2 years ago

Why is a bank more likely to offer you credit if you have a cosigner?

Business

1 answer:

Brums [2.3K]2 years ago

5 0

Answer:

Because a cosigner is another person who is also responsible for ensuring the loan is paid.

Explanation: A cosigner is a person who is signing on to the loan and by doing so, they are jointly taking on responsibility for repayment of the loan. So basically loan repayment is being guaranteed by the person taking out the loan and the cosigner.

You might be interested in

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

Galina-37 [17]

Answer and Explanation:

The Preparation of statement of stockholders’ equity is shown below:-

Statement of Stockholder's Equity

Power Drive Corporation

For the year ended December 31, 2018

Particulars Common Additional Retained Treasury Total

stock paid in Earning Stock Stockholder

capital equity

Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000

Issued common

stock 58,000 $3,132,000 0 0 $3,190,000

(58,000 × $1) (58,000 × $54)

Purchase treasury

stock -$307,400 -$307,400

(5,300 × $58)

Dividends -$251,955 -$251,955

((100,000 + 58,000 - 5,300) × $1.65)

Sale of Treasury

stock $13,250 $153,700 $166,950

(2,650 × $5) (2,650 × $58)

Net Income $630,000 $630,000

Balance,

December

31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595

Total Stockholder's equity is

= Common stock + Additional paid in capital + Retained earnings - Treasury stock

= 158,000 + $7,945,250 + $2,678,045 - $153,700

= $10,627,595

8 0

3 years ago

7. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can affort is $350. The loan will have

nordsb [41]

Answer:

$13,290.89 and $15,734.26

Explanation:

In this question we have to use the Present value function which is shown on the attachment below:

In the first case

Provided that

Future value = $0

Rate of interest = 12% ÷ 12 months = 1%

NPER = 48 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $13,290.89

In the second case

Provided that

Future value = $0

Rate of interest = 12% ÷ 12 months = 1%

NPER = 60 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $15,734.26

8 0

3 years ago

Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays

andrezito [222]

Answer:

The average fixed cost is $2.4.

Explanation:

Vipsana's Gyros House sells gyros.

The cost of ingredients to make a gyro is $2.00.

Vipsana pays her employees $60 per day.

She also incurs a fixed cost of $120 per day.

The cost incurred on ingredients and workers is a variable cost.

The total fixed is thus $120.

The average fixed cost for 50 gyros

= $\frac{TFC}{Q}$

= $\frac{120}{50}$

= $2.4

5 0

3 years ago

Olde Shoppe has the following information at August 31: times Two deposits made on August 31 were not on the bank statement, t

Reika [66]

Answer:

The adjusted book balance at August 31 is $13,824

Explanation:

The computation of the book balance is shown below:

= Cash balance + EFT payment on a note receivable + interest on the note - forgot to record check - check printing service fee - NSF check

= $11,667 + $2,830 + $150 - $643 - $80 - $100

= $13,824

The remaining transactions would be adjusted to bank balance

3 0

2 years ago

Alpaca Yarn employs factory workers to hand spin wool yarn and fabric in a workshop on the company farm. Which economic question

zimovet [89]

The answer to the statement above is what to produce? and how to produce?. basically having the statement that Alpaca Yarn employs factory workers to hand spin wool yarn and fabric in a workshop on the company farm lacks the question as to what product would the make with the yarn and fabric and the volume that they'll be making.

8 0

2 years ago

Read 2 more answers