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2 years ago

Why is saving, spending and investing important? long summary

1 answer:

3 0

Saving money is important because of you run in to a problem like your car breaking down you need to have money to fix it. Also saving money is important because you will able to do things like going on vacation. Investing is important because I one thing goes bad you still have other incomes coming in.

Hope this helps

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A small office building is purchased for $1,200,000 with a balloon mortgage that is due at the end of year 10. Payments are base

anygoal [31]

Answer:

$12,000 during the first year or $1,200 per year during 10 years

Explanation:

The IRS considers mortgage points as interest paid in advance, and generally individuals and small businesses will deduct them entirely during the current year. But the taxpayer can choose to deduct that amount ratably over the life of the loan (in this case 10 years). Of course most people chooses to deduct them completely during the first year because the IRS doesn't recognize any interest.

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3 years ago

Nathan has been unable to trust banks since the failure of his savings and loan bank. He claims that storing his hard-earned mon

Lerok [7]

Answer:

Nathan's contention is wrong.

Explanation:

Storage of money at home involves the opportunity cost of losing out on income that would've been generated had the same money been invested elsewhere or deposited with a bank.

Secondly, money stored at home is vulnerable to theft and other forms of risks.

Thirdly, stored money at home does not contribute to any economic benefit since such money is out of circular flow of money in the economy. So it yields no return.

Thus, Nathan's contention of stored money at home being costless is wrong.

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3 years ago

Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.

Kamila [148]

Answer:

The answer is 9.00%

Explanation:

real risk-free rate = 3.00%

average expected future inflation rate = 5.90%

Maturity risk premium = 0.10%

The expected rate of return on a 1 year treasury security would be = the average expected future inflation rate + maturity risk premium + real risk-free rate.

= 3.00% + 5.90% + 0.10%

= 9.00%

6 0

3 years ago

4) All of the following are true of known liabilities except:A) Include accounts payable, notes payable, and payroll.B) Are obli

Thepotemich [5.8K]

Answer: E) May depend on some future event occurring. It is not a characteristic of known liabilities.

Explanation: Unknown or uncertain liabilities are those whose existence depends on the occurrence of a future event.

Known liabilities <u>are definitely determinable and measurable.</u>

<u />

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3 years ago

E-Loan, an online lending service, recently offered 48-month auto loans at 4.5 % compounded monthly to applicants with good c

ser-zykov [4K]

Answer:

Therefore I can borrow $19646.12 from E-Loan.

The interest I will pay for the loan is $1,857.88.

Explanation:

The formula of present value is

$PV=PMT(\frac{1-(1+i)^{-n}}{i})$

PMT = The monthly payment = $448

i= Rate of interest per period $=\frac{4.5}{12}\%=0.00375$

n = The number of month = 48 months

Therefore

$PV=448(\frac{1-(1+0.00375)^{-48}}{0.00375})$

≈$19646.12

Therefore I can borrow $19646.12 from E-Loan.

The interest = Paid amount - Loan amount

=$[(448×48)-19646.12]

=$1,857.88

The interest I will pay for the loan is $1,857.88.

6 0

3 years ago