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kompoz [17]
3 years ago
10

Conservative Bank offers loans at various interest rates, depending on the nature of the loan. Jake wants to borrow $200,000 for

a new home. He promises to pay back the loan in 10 years. Alyssa also wants to borrow $200,000 for a new home. She promises to pay back the loan in 15 years. Assume Jake and Alyssa are equally creditworthy and that the two home mortgages are the same in all other aspects. If all else is constant, the bank would most likely charge a higher interest rate to___.
Business
1 answer:
Helga [31]3 years ago
5 0

Answer:

Bank would most likely charge a higher interest rate to Alyssa

Explanation:

Credit worthiness of Jake and Alyssa is same and interestingly amount is also same. But Alyssa is taking it for long period of time say, 15 years while Jake will return in 10 years. Bank decides the interest rate based on the economic conditions. Short term loan are given at lower rate because it is easy to predict the future. But here in both cases, loans are taken for long period. But still Alyssa period is greater than Jake. Thus, bank will charge higher interest rate from Alyssa.

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The amphibians have loose fitting skin. this helps them with which of the two major challenges for transition to land?
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2 years ago
On 12/31/X4, Zoom, LLC, reported a $55,500 loss on its books. The items included in the loss computation were $27,000 in sales r
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Answer:Ordinary Business income loss =-$20,500.

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employee wages= $17,000

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With the use of technology to upgrade products and services, demand curves will continually shift, according to preferences of customers.

Technology could be used by firms to produce upgrades and newer variations of products at more favorable prices for customers  than existing products. This leads to competition and the demand for the newer device goes up since people see the new product as 'getting more for less'. A good example is computers and tablets. Tablets which could match up with the work of computers were produced at lower prices. This shifted the demand towards tablets, making computers more obsolete.

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Read more on CVP analysis here:

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