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3 years ago

How does a savings account benefit the bank

Business

1 answer:

prohojiy [21]3 years ago

7 0

Answer:

Having a strong base of savings account deposits is critical for a bank to remain solvent and profitable. Banks use that money to lend to borrowers, who then pay interest on their loans. After paying for various costs, banks pay money on savings deposits to attract new savers and keep the ones they have.

Explanation:

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Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purch

geniusboy [140]

Answer:

Since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

Explanation:

Solution

Buy versus Lease problem:

Now,

Buy case

The Purchase price = Gross capitalized cost = $30,000

The Down payment = $3300

The Present value of borrowing from credit union = 30,000 - 3300 = $26700

The EMI payment = $614.88,

No of months = 48, Annual percentage rate (APR) = 5%

The Monthly Percentage rate = 5%/12 = 0.4%

Then

We find future value at the end of 48 months

By applying Excel,

PV=26700, N=48, I/Y=0.4%, PMT=614.88

FV = -0.14079 which is approximate to Zero (given that EMI payment was rounded off to digit of 2 , FV has resulted slightly differ from zero)

So, at the end of four years, the car has no residual value as per the buy option.

The Finance charges of borrowing the car = Sum of all the EMI payments – principal payment

= $61488*48 - 26700 = $2924.724

The lease case

The cost reduction capital= $3300 (capitalized cost is paid by customers to decrease the rate of lease while leasing cars)

Fee disposition on the car = $350

The Residual value = $12,400

Then,

PV = $30,000 - $3300 = $26,700, EMI = $330, Number of months leased = 48

FV = Residual value – Disposition fee = $12,400 - $350 = $12,050

The cost of dollar of leasing = Sum of all the payments of EMI - payment based on principal value at the end of the lease period = 330 * 48 – (26700 – 12050) = $1190

Therefore, since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

4 0

3 years ago

Identify the goal of outsourcing governance procedures. Group of answer choices To report on the fairness of the presentation of

VashaNatasha [74]

Answer:

To ensure that the outsourcing initiative succeeds, even as personnel, business needs, and operating conditions change

Explanation:

Outsourcing

This is simply regarded as a form of an arrangement through which one company in contact with another organization mainly to give or provide services that ordinarily could be provided by company employees.

Reasons why organizations outsource

1. To cut costs

2. To improve focus

3. To upgrade capabilities and services

4. Fasten or accelerate time to market etc.

There are several issues associated with outsourcing. They includes:

1. There is the problem of decreasing employee Morale

2. Quality problems

3. Legal issues

3. Negative impact on customer relationships and satisfaction

4. Data security and integrity issues etc.

The objective of outsourcing is to save money and/or provide better service. It aim to lessen or free up development staff to cutoff peaks and valleys in the staffing cycle.

7 0

3 years ago

Which one of the following is something to look for in identifying a company's culture? A. the atmosphere, spirit and character

Tju [1.3M]

Answer:

A. the atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

Explanation:

Culture is the normally acceptable social behaviour that is expected from someone in a group. It includes beliefs, knowledge, art, law, capabilities, and habits of the group.

The process by which the culture of a group is imbibed is through learning and socialisation.

The norm of a group is the acceptable way one is expected to behave in the group. Like the way one dresses and language.

A company's culture is expressed in the spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices.

6 0

3 years ago

Given the rapid advancements in technology in developed countries and fast pace of globalization, it is not possible to bridge t

VladimirAG [237]

Answer and explanation:

I disagree. It is a fact that developing countries cannot keep the pace of developed countries when it comes to producing technological inventions because of the differences in resources -capital and knowledge. However, everyday technology is faster at the reach of people's hands regardless of where they are located in the world. It is indeed bridging the technology access developing countries have with the developing countries. It now depends on developing countries in finding out how they use that technology to improve the masses' lifestyles.

7 0

3 years ago

The manager at Tom's Taxidermy expects to sell 1,000 units at $70 each unit. In order for the manager to breakeven, the manage

STatiana [176]

Answer:

A.$63,000

Explanation:

The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.

In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:

$MS = (1,000-100)*\$70\\MS=\$63,000$

The answer is A.$63,000.

6 0

3 years ago