1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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. 
You might be interested in
Which structure would you be most likely to choose if your company wanted to give its sales people a predictable paycheck and al
tangare [24]
<span>The pay structure that would be used in this model is salary plus commission. Commission is a percentage of total sales so the more sales are made by an employee the more they make. The salary also gives them a regular amount of pay when things don't go well for the month, but the commission pushes them to continue to do their best.</span>
7 0
3 years ago
Read 2 more answers
In a homogeneous-good Cornet model where each of the n firms has a constant marginal cost m and the market demand curve is p = a
Jlenok [28]

Answer:

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

Explanation:

In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem

Max_{q_i} \,\, \Pi_i=(a-b(\sum_{i=1}^n q_i)-m)q_i

from the FPC we have that

a-b\sum_{i=1}^n q_i -m -b q_i=0

q_i=\frac{a-b \sum_{i=2}^n q_i-m}{2b}

since all firms are homogeneous this means that q_i=q \forall i

then q=\frac{a-b (n-1) q-m}{2b}=\frac{a-m}{(n+1)b}

the industry output is then

Q=nq=\frac{n}{n+1}\frac{a-c}{b}

if n=1 (monopoly) we have Q^M=\frac{1}{2}\frac{a-c}{b}

if n goes to infinity (approaching competitive level), we get the competition quantity that would be Q^c=\frac{a-c}{b}

7 0
2 years ago
A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com
andreyandreev [35.5K]

Answer:

flexible budget amount for canoe sales revenue for April is $72000

Explanation:

given data

sell =  100 canoes

average sales price = $600

sold = 65

total sales = 130

canoes at an average price = $595

actual sales = 120 canoes

to find out

flexible budget amount for canoe sales revenue for April

solution

we know here for flexible budget april sale unit are = 120

and selling price is $600

so that April sales will be here = 120 × 600

April sales = 72000

so flexible budget amount for canoe sales revenue for April is $72000

3 0
3 years ago
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's t
anzhelika [568]

Answer:

8.94%

Explanation:

Firstly, we will need to find total equity and total debt of Harrington Inc inorder to apply the Dupont equation for getting ROE

Harrington's total debt = 15.00 % × $250,000

= $37,500

Harrington's total equity will be; applying accounting equation

Asset = Liabilities + Owner's equity

Owner's equity = Assets - Liabilities

= $250,000 - $37,500

= $212,500

Therefore, using the Dupont equation, we can calculate the ROE as;

(NI/Sales) × (Sales/Total assets) × (Total assets/Total common equity)

= 19,000/325,000 × 325,000 /250,000 × 250,000/212,500

= 8.94%

7 0
3 years ago
Which of the following is an example of a hidden variable? Quality of life is a hidden variable because it cannot be measured di
My name is Ann [436]

Answer:

<u>Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment. </u>

Explanation:

<u>Hidden variable:</u> The term "hidden variable" is described as the proposition that specific "statistical models" of any physical systems, for example, Quantum mechanics are being incomplete inherently, and along with this the apparent randomness of a particular system is being dependent not on "collapsing functions" but instead it is due to any unmeasurable or unseen or hidden variables.

8 0
3 years ago
Other questions:
  • David Spear invested $14,000 today in a fund that earns 10% compounded annually. Click here to view factor tables To what amount
    14·1 answer
  • Which of the following is not one of the four components of the business process
    15·1 answer
  • Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D D
    14·1 answer
  • Use this information for Train Corporation to answer the question that follow. The following financial information was summarize
    5·1 answer
  • To generate higher profit margins, producers must work to
    11·2 answers
  • ____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization
    9·1 answer
  • Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month? A. L
    9·1 answer
  • The following procedures were recently installed by Raspberry Creek Company: After necessary approvals have been obtained for th
    10·1 answer
  • Kim, Chris, and Beth are all partners in a cosmetics firm. Kim is leaving the partnership and wants to sell her shares of the bu
    14·1 answer
  • A bank currently has $150 million in "hot money" deposits against which it wants to hold an 80 percent reserve and $90 million i
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!