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3 years ago

You deposit $1,500 in a bank where you have a savings account. The bank

1 answer:

8 0

Interest rate risk

Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.

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A homebuyer wishes to finance the purchase with a $95,000 mortgage with a 20-year term. What is the maximum interest rate the bu

galina1969 [7]

Answer:

0.811% per month is the amximum rate it can affor

or 9.732% annual rate with monhly compounding.

Explanation:

We have to solve for the rate at which the monthly payment equals 900 dollars.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 900.00

time 240

rate r

PV $95,000.0000

$900 \times \frac{1-(1+r)^{-240} }{r} = 95,000\\$

Given the complexity of the formula we solve using excel or a financial calcualtor

we write on a1 =PV(A2;240;95000)

on a2 we write any number between 0 and 1

then we use goal seek tool adn define that we want A1 to be 95,000 by changing A2 (which is the argument for rate)

the value of A2 after this is our answer:

$900 \times \frac{1-(1+0.00811)^{-240} }{0.00811} = PV\\$

PV $95,000.0000

5 0

3 years ago

A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 15 loans per da

anyanavicka [17]

Answer:

a) 46.7, 80 b) 20, 60 c) yes

Explanation:

a) % utilization= utilization/design capacity × 100

= 7/15 × 100

= 46.7%

% efficiency= efficiency/design capacity × 100

= 12/15 × 100

=80%

b) Utilization= 2/10 × 100 = 20%

Efficiency= 6/10 × 100= 60%

c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures

6 0

3 years ago

5. Name the three factors of production and two payment types in the circular flow model.

zhannawk [14.2K]

Hi sweetie! Hope i can help!

Answer:

Land, labor, and capital

Wishing you the best of luck,
Izzy

4 0

3 years ago

Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out

stepladder [879]

Answer:

The amount of dividend received by common stockholders in 2017 = $7500

Explanation:

The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.

The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500

In 2016 dividend of 22500 is declared and paid.

Out of this 22500, 12500 relates to prefernece dividend for 2015.

The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.

In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.

The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500

7 0

3 years ago

Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The own

Basile [38]

Answer:

A contractual marketing system

Explanation:

Java Jane's most likely adopted a contractual marketing system.The contractual system is a vertical marketing system in which all the companies involved tend to work independently as individual entities. Regardless of working independently, they also work together to achieve greater goals and efficiencies.

They are also known as value-added partnerships since they work hand in hand to create value for other entities that are involved

8 0

3 years ago