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Paha777 [63]
2 years ago
7

The concept of​ "Power Payments" will help you repay your loans faster and reduce your total interest payments. Consider a situa

tion where you have 3​ loans:
Loan A has a loan payment of​ $500/month and an interest rate of​ 5% APR;
Loan B has a payment of​ $200/month and an interest rate of​ 3% APR;
Loan C is a credit card with a payment of​ $300/month and interest rate of​ 18% APR.
You just made the final payment on your auto loan​ (Loan A). ​ Yahoo!! What should you do with the​ $500/month payment that you no longer have to pay on Loan A if you want to reduce your loans as fast as​ possible?
Business
1 answer:
NeX [460]2 years ago
6 0

Answer:

You should pay loan C since it does not only represent the largest monthly payment, but it also has the highest APR. The sooner you pay your credit card balance (loan C) the better.

On the other hand loan B has a smaller monthly payment and a much lower APR.

You might be interested in
Use what you have learned about risk and return to complete these sentences.
vfiekz [6]

Answer:

To minimize risk, investors should  investigate the market and diversify its portfolio.

Interest that builds on the principle and the interest already gained is  compound interest

Money invested in a CD always have a fixed rate of return and is less risky than money used to purchase a home.

4 0
2 years ago
Read 3 more answers
Protec Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is
taurus [48]

Answer:

The correct answer is 8.23%.

Explanation:

According to the scenario, the computation can be done as:

WACC of debt = Respective costs of debt× Respective weight of debt

= (0.4 × 5)

= 2

WACC of preferred = Respective costs of preferred × Respective weight of preferred

= (0.15 × 7)

= 1.05

WACC of common equity = Respective costs of common equity × Respective weight of retained earning

= (0.45 × 11.5)

= 5.175

So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity

= 2 + 1.05 + 5.175

= 8.225 or 8.23 (approx.)

3 0
2 years ago
How does the buying decision process differ when consumers are shopping on the Internet or mobile device compared with shopping
LuckyWell [14K]

Explanation:

The purchase decision process on the Internet or on mobile devices compared to purchases in a physical store, differ according to the characteristics of each of the shopping environments.

According to Kotler and Keller, the consumer purchase decision process goes through 5 stages:

  1. problem or need recognition,
  2. information search,
  3. evaluation of alternatives,
  4. purchase,
  5. post-purchase behavior.

Therefore the consumer will determine which are the essential attributes when making a purchase and which ones will bring the greatest benefits.

Currently the online shopping market has grown substantially, since most individuals have access to the internet, which makes companies look for a greater online presence, which guarantees the possibility of also offering consumers greater benefits, such as greater discounts and promotions. , since, there is a reduction in systemic and physical costs when the company sells over the internet.

Therefore, online stores compared to physical stores are more likely to offer purchase and post-purchase benefits, in addition to a greater variety of products and brands available, increasing consumer choice.

4 0
2 years ago
Sally Smith decided to start a sea shell business organized as a corporation. Her initial investment in the business consisted o
saw5 [17]

Answer:

Dr Cash Account and Cr Capital Account

Explanation:

Initial investment  of $10,000 is the capital injected by the owner of the business. This inflow will be credited as an equity capital of the company while the cash balance will be debited as it represent a cash inflow to the business.

7 0
2 years ago
During the year, Anna rented her vacation home for 87 days, used it personally for 13 days, and left it vacant for 265 days. She
frosja888 [35]

Answer:

The mortgage interest amount will be "Zero (0)".

Explanation:

A property to pay. Unless the apartment is started renting for 15 days or more in one year as well should not be used for private purposes for even more of some

(1) 14 days as well as

(2) 10% of the total rentals days, the apartment shall be considered as rental home.

Gross income = $7000

Now,

Total \ expenses =  (2500+9000+2400+1000+7500) - personal \ deduction[(2500+9000+2400+1000+7500)\times \frac{13}{100} ]

On putting the values, we get

⇒                      =22400 -2912

⇒                      =19488

And, Net rental loss will be:

=12,488 (7000 - 19488)

=12488-12488

=0

So that the Mortgage interest itemized will be "0" .

                       

8 0
2 years ago
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