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3 years ago

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Business

2 answers:

Alik [6]3 years ago

9 0

Correct Answer is Option C - It has no impact because a fixed-rate mortgage cannot change.

Economic Downturn is the general slowdown in the economy over the period of time. During economic downturn, there is less demand for money and as a result there is fall in the price of credit. But in case of fixed rate mortgage the rate is always fixed irrespective of the economic scenario.

So, economic downturn has no impact on borrowers fixed rate mortgage because a fixed-rate mortgage cannot change.

rosijanka [135]3 years ago

7 0

Answer: C

Explanation: trust;)

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Elroy is the sole proprietor of a gift shop in a small shopping center. Because he is a sole proprietor, any profit Elroy's busi

USPshnik [31]

Answer:

B)taxed only as Elroy's personal income.

Explanation:

A sole proprietorship is owned by one person known as the sole proprietor. His profits are taxed once as personal income. A sole proprietorship doesn't have investors.

I hope my answer helps you

3 0

3 years ago

Cujo invested $2,500 in an account earning 3.4% annual interest that is compounded semi-annually. How long will it take the inve

just olya [345]

Answer:

10 years and 10 months.

Explanation:

Provided information we have,

Amount invested = $2,500

Earning interest rate = 3.4% annually

Compounded semiannually

Thus, period to be considered = 2 in a year

Interest rate = $3.4 \times \frac{6}{12} = 1.7$

Thus, effective interest rate = 1.7%

Now, according to future value of compounded rate @ 1.7% at a period 65 factor = 2.9913

Thus value will be $2,500 $\times$ 2.9913 = 7,478.25

That is approximate triple in value.

Thus, total period in number of years = 65/6 months = 10.833 years.

0.833 $\times$ 12 months = 10 months

That exactly means 10 years and 10 months.

5 0

3 years ago

Read 2 more answers

Black Bear Auto Company incurred $120,000 of indirect advertising costs for its operations. The following 2017 data have been co

Alex

Answer:

a. Allocating cost using direct advertising costs

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

b. Allocating cost using Newspaper ad space

We have:

Cost allocated to New Cars = $72,000

Cost allocated to Used Cars = $36,000

Cost allocated to Parts and Service = $12,000

c. Allocating cost using Sales

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

Explanation:

Given:

New Cars Used Cars Parts and Service

Direct advertising costs $30,000 $24,000 $6,000

Newspaper ad space 60% 30% 10%

Sales $250,000 $200,000 $50,000

The costs allocated to each department can now be calculated as follows:

a. Allocating cost using direct advertising costs

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Direct advertising costs of the department / Sum of direct advertising costs of the 3 departments) * Indirect advertising costs ................... (1)

Using equation (1), we have:

Cost allocated to New Cars = ($30,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($24,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $48,000

Cost allocated to Parts and Service = ($6,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $12,000

b. Allocating cost using Newspaper ad space

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = Percentage of Newspaper ad space of the department * Indirect advertising costs ................... (2)

Using equation (2), we have:

Cost allocated to New Cars = 60% * $120,000 = $72,000

Cost allocated to Used Cars = 30% * $120,000 = $36,000

Cost allocated to Parts and Service = 10% * $120,000 = $12,000

c. Allocating cost using Sales

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Sales of the department / Sum of Sales of the 3 departments) * Indirect advertising costs ................... (3)

Using equation (3), we have:

Cost allocated to New Cars = ($250,000 / ($250,000 + $200,000 + $50,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($200,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $48,000

Cost allocated to Parts and Service = ($50,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $12,000

5 0

3 years ago

You were recently promoted to the head of the machine shop. As you start to look around, you notice that there are many machines

galina1969 [7]

Answer:

Here we can use a approach which is know as 5 S PLUS 1 S.

Explanation:

This approach of 5 S PLUS 1 S means sort, set in order, shine, standardize,sustain and safety, this is a very common method that corporations uses to increase both their efficiency and productivity with decreasing the wastage of materials.

In this organization workplace method, we start with sorting out all the unnecessary material that we don't need and then we start organizing the workplace, as it is important to keep all the inventories and other useful materials or tools properly and then comes the step of keeping useful stuff tidier and would help in maintaining a certain level of standard in the production and by keeping doing all these things an organization can maintain sustainability and keep the company free from any hazards.

7 0

3 years ago

When there is a decrease in the price of a goodthe demand curve will shift to the right.The elasticity of demand will determine

Margarita [4]

Answer: The elasticity of demand will determine the degree to which quantity demanded rises.

Explanation:

Acc. to the law of demand, demand for a normal good is negatively related to its price. When price of the good falls, quantity demanded rises.

Price elasticity of demand shows us the magnitude of change in quantity demanded to a change in the price of the good.

So, when price falls, elasticity will show us by the degree to which quantity demanded rises.

8 0

4 years ago