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mina [271]
3 years ago
12

A borrower is unsure whether to go with a fixed rate or adjustable rate loan. what kind of questions would you ask to help them

decide?
Business
1 answer:
katovenus [111]3 years ago
5 0
I would ask them if they were comfortable with a fluctuating rate, which though at the moment is lower than the fixed rate, could go up in the future. I would also ask them if they needed to be sure of the rate say for example for a 5 year term like in a mortgage for peace of mind or if they are willing to take a risk with the fluctuations. If the latter, I would tell them that at any time they could lock it in for a 5 year term if they saw it going up. 
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In ________ ranking, raters look at a list of employees, decide who the best employee is, and cross that person's name off the l
Katyanochek1 [597]

Answer: Alternation Ranking

Explanation: In Alternation Ranking employees are rated by choosing the best and then the worst employee, and then repeating the process until all employees have been rated. This method is effective in determining worker's performance using comparison with other workers in the company.

4 0
3 years ago
Galena is a new agent for a financial services company. She decides to join the local chamber of commerce, the local association
mixer [17]

Answer:

B) networking

Explanation:

Networking involves the sharing of information and ideas among people in a social group, or social set up. Networking happens in informal groups formed by people who share common interests and ambitions.  Professional use networking to expand their circles of friends, acquaintances, and potential business partners.

Business people join or create networking groups to develop relationships with other business-minded people. By joining the local chamber of commerce, Galena will interact and socialize with other businesswomen. She will make friends and get a platform to engage with other professionals in her field.

4 0
3 years ago
The yield to maturity (YTM) on 1-year zero-coupon bonds is 8% and the YTM on 2-year zeros is 9%. The yield to maturity on 2-year
yarga [219]

Answer:

Arbitrage opportunity may exists as the ZCBs selling at different price at same time due to change in their YTM .

The PV of 100 face value zcb with different ytm are different , in this case.

for one year maturity with face value 100 current price = fv/ pv at 8% = 92.59

for Two year maturity with face value 100 current price = fv / Pv at 9% for two years = 84.167 , if the bond holder sell the bond after 1 year only, the price = 91.74 .

a) The arbitrage opportunity exist with buy two bond with face value 100 with maturity of 1 year and face value 110 with maturity of 2 years.

b) profit 0.01 , as difference between PV of both bond at their YTM rate.

3 0
3 years ago
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Ivan
Alona [7]

Answer:

Requirement: Prepare the entry to record the sales transactions and related taxes.

1.   Date      Account Titles and Explanation     Debit     Credit

   Apr. 10   Cash                                                 $30,975

                        Sales Revenue                                          $29,500

                        Sales Tax Payable                                     $1,475

                 (To record Cash sales along with sales tax)

2. Date      Account Titles and Explanation    Debit     Credit

   Apr. 15   Cash                                                 $18,530

                        Sales Revenue                                          $17,000

                        Sales Tax Payable                                     $1,530

                  (To record Cash sales along with sales tax)

<u></u>

<u>Workings</u>

- Total Sales along with sales tax = $18,530, Sales Tax Rate = 9%. Sales Tax Amount = 18530*(0.09/1.09) = $1,530

- Sales Without Sales Tax = $18,530 - $1,530 = $17,000

7 0
3 years ago
A business has the following items: - Land $1,500,000 - Machinery $30,000 - Cash $10,000 - Loan $500,000 - Owner’s equity? _____
vodomira [7]

Answer:

The owner's equity amounts to $1,040,000

Explanation:

The formula to compute the owner's equity is as:

Owner's equity = Assets - Liabilities

Where

Assets = Land + Machinery + Cash

= $1,500,000 + $30,000 + $10,000

= $1,500,000 + $40,000

= $1,540,000

Liabilities = Loan

= $500,000

Putting the values above in the formula:

= $1,540,000 - $500,000

= $1,040,000

6 0
3 years ago
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