Menu costs play a role in explaining the sticky-price theory and the misperceptions theory. In the sticky-price theory, prices do not adjust immediately to changes in demand or supply due to the costs associated with changing prices, such as printing new menus or updating computer systems.
This results in temporary imbalances in the market, leading to fluctuations in output and employment. In the misperceptions theory, firms may misinterpret changes in prices as changes in relative prices, leading to incorrect production decisions. Menu costs also indirectly impact the natural rate of unemployment by causing firms to adjust employment levels instead of prices in response to changes in demand or supply. The sticky-wage theory, on the other hand, is not directly related to menu costs but rather suggests that nominal wages are slow to adjust due to factors such as labor market institutions or social norms.
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Which of these is NOT one of the six steps to a solution?
Smith Ltd is a utility company that owns a large cable connecting Melbourne to Singapore. Bob Ltd (customer) and Smith Ltd (supplier) enter into a 6-year contract which gives Bob Ltd the right to use a specified amount of capacity within a cable owned by Smith Ltd. The specified amount of capacity is equivalent to the full capacity of three fibre strands within the cable. The transmission of data follows a pre-determined schedule, but Smith Ltd makes decisions about which fibres are used to transmit Bob Ltd’s traffic. If the fibres are damaged, Smith Ltd is responsible for the repairs and maintenance. Smith Ltd is obliged to substitute the fibres for reasons of repairs, maintenance or malfunction.
Required: Based on AASB 16 Leases, analyse whether the above contract should be treated as a lease contract.
Based on the provided information, it is necessary to analyze whether the contract between Bob Ltd and Smith Ltd should be treated as a lease contract according to AASB 16 Leases.
According to AASB 16 Leases, a contract is considered a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In this case, the contract between Bob Ltd and Smith Ltd grants Bob Ltd the right to use a specified amount of capacity within the cable owned by Smith Ltd.
To determine if it qualifies as a lease, several key criteria need to be evaluated:
1. The cable is an identified asset: The cable connecting Melbourne to Singapore is a specific and identifiable asset.
2. Bob Ltd has the right to control the use of the asset: Although Smith Ltd makes decisions about which fibres are used for transmission, Bob Ltd has the right to use a specified amount of capacity within the cable.
3. The contract specifies a period of time: The contract is for a 6-year period, indicating a defined lease term.
4. Consideration is exchanged: The contract involves Bob Ltd paying for the right to use the specified capacity.
Considering these factors, it can be concluded that the contract between Bob Ltd and Smith Ltd should be treated as a lease contract under AASB 16 Leases. Bob Ltd has the right to control the use of the identified asset (the specified capacity within the cable) for a defined period of time, and consideration is exchanged between the parties.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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The Cost of Borrowing
Susan, a freshman in college, got a new credit card over the summer. Use the following information to complete the tables below and discover what happened during her first semester.
Her credit card has an 18% APR with a minimum payment of 3% of the balance or $10, whichever is greater. Each month, interest charges are computed as 1.5% (18% ÷ 12 months) of the unpaid balance on her statement, before new charges are added.
AUGUST
In August, she bought books for her classes ($250) and some items for her dorm room ($90). Because she had not used her card before, she had a zero balance at the beginning of the month. Her first bill came on August 31. She could either pay the total balance or a minimum payment of 3% of that balance. She was a little short of cash, so she only paid the minimum due on her credit card.
August 31 Statement
Previous balance
0
Current finance charge
0*.015=0
New charges
$340.00
New balance
$340.00
Minimum payment
$340 * .03 = $10.20
SEPTEMBER
In September, Susan wanted to go to the first out-of-town football game with some friends. She paid for the hotel room ($85) with her credit card, and her friend bought the gas and the game tickets. On her statement dated September 30, finance charges were added to the unpaid balance from August. Her new balance included her previous balance less her payment, the finance charges and new purchases. She could pay the entire balance, or she could pay the minimum due. Once again, she knew that she should pay the entire balance, but she decided that she would take care of that later. She paid the mini- mum payment.
September 30 Statement
Previous balance
Payment
Remaining balance
Current finance charge
New charges
New balance
Minimum payment
OCTOBER
In October, it was homecoming at the university. Susan wanted new clothes for the weekend. She charged a sweater to wear to the game ($50) and a dress for the dance ($149). For one more month, Susan paid only the minimum.
October 31 Statement
Previous balance
Payment
Remaining balance
Current finance charge
New charges
New balance
Minimum payment
NOVEMBER
When she took her car to have the oil changed before she drove home for Thanksgiving, the mechanic told her that her tires were not safe and she needed new ones before the long drive. The oil change and the tires totaled $425.
November 30 Statement
Previous balance
Payment
Remaining balance
Current finance charge
New charges
New balance
Minimum payment
REVIEW
Complete the following table using information from Susan’s monthly statements.
Total purchases
Balance at the end of November
Difference between purchases and balance (How much has she paid off?)
Finance charges in four months
Total of all monthly payments
The cost of borrowing is the interest and other fees paid by the borrower for a loan or credit card. Monthly payments are the amount paid monthly towards a loan or credit card balance. The total of all monthly payments is $72.99.
In the scenario given, Susan has a credit card with an 18% APR with a minimum payment of 3% of the balance or $10, whichever is greater. Interest charges are computed as 1.5% (18% ÷ 12 months) of the unpaid balance on her statement, before new charges are added.
Susan's credit card balance and payments over the course of four months are as follows:
- August 31:
- Total purchases: $340.00
- Balance: $340.00
- Finance charges: $0.00
- Minimum payment: $10.20
- September 30:
- Previous balance: $340.00
- Payment: $10.20
- Remaining balance: $329.80
- Current finance charge: $4.95 (1.5% of $329.80)
- New charges: $85.00
- New balance: $419.75
- Minimum payment: $12.59
- October 31:
- Previous balance: $419.75
- Payment: $12.59
- Remaining balance: $407.16
- Current finance charge: $6.11 (1.5% of $407.16)
- New charges: $199.00
- New balance: $612.27
- Minimum payment: $18.37
- November 30:
- Previous balance: $612.27
- Payment: $18.37
- Remaining balance: $593.90
- Current finance charge: $8.91 (1.5% of $593.90)
- New charges: $425.00
- New balance: $1,027.81
- Minimum payment: $30.83
The table shows the calculations of Susan's credit card balance and payments for each month from August to November.
In August, her total purchases were $340.00, and since she only paid the minimum payment of $10.20, her remaining balance was $329.80.
In September, finance charges of $4.95 were added to her previous balance, resulting in a new balance of $419.75. She again paid the minimum payment of $12.59.
In October, finance charges of $6.11 were added to her previous balance, and new charges of $199.00 were made. Her new balance became $612.27, and she made another minimum payment of $18.37.
In November, finance charges of $8.91 were added to her previous balance, and new charges of $425.00 were made. Her new balance rose to $1,027.81, and she made the minimum payment of $30.83.
To calculate the difference between Susan's total purchases and her balance at the end of November, subtract her remaining balance from her total purchases. The difference is $340.00 - $593.90 = -$253.90. This means that Susan has not paid off her full balance and still has an outstanding debt of $253.90.
To calculate the total finance charges over the four months, sum up the finance charges from each month: $0.00 + $4.95 + $6.11 + $8.91 = $19.97.
To calculate the total of all monthly payments, sum up the minimum payments from each month: $10.20 + $12.59 + $18.37 + $30.83 = $72.99.
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8 Steps in Organizational Development (OD) interventions
Answer:
The Eight Steps for Organizational Develpoment Intervaentions
Explanation:
Entry Signals
Purpose
Assessment
Action Plan
Intervention
Evaluation
Adoption
Seperation
... i think
the norris-laguardia act made it more difficult for unions to legally recruit new members. group of answer choices false
The given statement "the norris-laguardia act made it more difficult for unions to legally recruit new members" is false because the Norris-LaGuardia Act protected workers' right to organize and join unions.
The Norris-LaGuardia Act, passed in 1932, was actually designed to make it easier for unions to organize and engage in collective bargaining with employers. The act restricted the use of court injunctions to prevent strikes, picketing, and other union activities, which had previously been a common tactic used by employers to break strikes and suppress unions.
The act also made it illegal for employers to require employees to sign contracts that prevented them from joining a union or engaging in union activities. Thus, the Norris-LaGuardia Act was a significant victory for organized labor and helped to strengthen the labor movement in the United States.
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What led to the success of whopper
Answer:
What makes this burger unique is not just its size, but the fact that Burger King flame-grills their hamburger patties, which gives you that recognizable, grilled flavor. Burger King introduced the Whopper in 1957,
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A job analysis report transforms the analysis into three components: an
analysis, a summary, and
?
OA. recommendations
OB. goals
OC. a questionnaire
O D. technical competencies
A job analysis report transforms the analysis into three components: an
analysis, a summary, and recommendations.
Job analysis is a process of identifying and describing the duties, responsibilities, and requirements of a particular job. It involves collecting and analyzing information about the job, such as its tasks, knowledge, skills, abilities, and other characteristics. The results of a job analysis can be used to develop job descriptions, determine job qualifications, establish performance standards, design training programs, and evaluate job performance. A job analysis report typically includes an analysis of the job, a summary of the findings, and recommendations for improving the job or filling the position. Job analysis is an important tool for organizations to ensure that they have the right people in the right jobs, which can lead to increased productivity, job satisfaction, and retention.
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What are B2C and B2B sales?
B2C and B2B sales refers to business-to-consumer and business-to-business sales respectively.
What is business-to-consumer sales?Business-to-consumer (B2C) companies having consumers as their end-users increasingly came to be known by this phrase when it gained popularity in the 1990s.
This contrasts with business-to-business (B2B) firms, or those whose main customers are other businesses. B2C businesses conduct their business online and offer goods to clients. Several B2C corporations include Amazon.
B2C, or business-to-consumer, is a retail model where things are delivered directly to the customer who has made a personal purchase of the goods or service.
Business-to-business sales are referred to as B2B sales. It describes enterprises or salespeople who engage in direct business-to-business (B2B) sales of goods and services.
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when is subsidy necessary in comodity supply
Answer:
A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.
Explanation:
Sam is getting his bachelor's degree. During some of his course work, he honed his research skills and learned to
exhibit confidence while presenting to an audience. Which career has Sam most likely been preparing for?
The correct answer is Journalism
Explanation:
Journalism is one of the careers that most require the use of communicative and research skills. This is because journalists are expected to gather information about important local, national and global events, which requires the use of research skills, and later they are expected to communicate the information precisely, concisely, and confidently, which requires the use of communicative skills. In this context, the career Sam is preparing for is journalism because this is the only one from the options that would require Sam to research and then communicate information confidently.
Answer:
D. Journalism
Explanation:
What are the two major categories of leadership styles
Answer: TRANSACTIONAL and TRANSFORMATIONAL are the two major categories of leadership styles.
Got 100% on Plato
Comprehension and speed are the two most important traits in reading for business. please select the best answer from the choices provided t f
Answer:
true
Explanation:
But accuracy would be a better option speed is good, so you are always on task and comprehension for big words.
A decrease in interest rates caused by a change in the price level would cause a(n):_________
A decrease in interest rates caused by a change in the price level would cause a(n) increase in the overall level of borrowing and investment in the economy.
When the price level decreases, it leads to a decrease in the general level of inflation. This decrease in inflation may prompt central banks or monetary authorities to lower interest rates to stimulate borrowing and investment.
Lower interest rates make borrowing cheaper, as it reduces the cost of borrowing for individuals, businesses, and governments. This, in turn, encourages increased borrowing for various purposes such as business expansion, investment in new projects, or purchases of goods and services. Lower interest rates can also incentivize consumers to borrow and spend, as it reduces the cost of financing purchases.
As borrowing and investment increase, it can stimulate economic activity, leading to increased production, job creation, and overall economic growth. The decrease in interest rates caused by a change in the price level is a monetary policy tool used to influence the overall level of economic activity and inflation.
It is important to note that the relationship between interest rates, price levels, and economic outcomes can be complex and influenced by various factors, including market conditions, government policies, and overall economic conditions.
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what are some common tools used by Food Service Managers? Select four options.
cash registers
laser printers
stoves and ovens
heating equipment
notebook and personal computers
personal digital assistants or organizers
Answer:
Cash registers
Laser printers
notebook and personal computers
personal digital assistants or organizers
Explanation:
Answer:
A, B, E, F
Explanation:
EDGE2022
apple used informative television ads to highlight the benefits of its iphone over rival cell phones that used the android operating system. what type of advertising was this?
Apple used informative television ads to highlight the benefits of its iPhone over rival cell phones that used the android operating system. Competitive advertising was shown here.
Companies utilize competitive advertising to set themselves apart from rivals. In this strategy, two brands are placed next to one another to demonstrate to consumers how they differ. Some businesses specifically mention the rival, while others merely refer to them as "the major competitor" or "brand X."
Comparative advertising, also known as combative advertising, refers to a type of advertisement in which a certain product or service directly names a rival in order to demonstrate why the rival is inferior to the product naming it.
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true or false , The tails of the t distribution contain less area
than the tails of the normal distribution.
False. The tails of the t distribution contain more area than the tails of the normal distribution. The t distribution has fatter tails, reflecting the greater probability of observing extreme values in comparison to the normal distribution.
The tails of a distribution refer to the extreme ends of the distribution, where the probabilities of observing values are relatively low. In the case of the t distribution, which is a probability distribution used in hypothesis testing and constructing confidence intervals for small sample sizes, the tails have more area compared to the tails of the standard normal distribution. The reason for this lies in the shape of the t distribution. The t distribution has thicker tails compared to the normal distribution, which means it assigns more probability to extreme values. This characteristic is due to the additional uncertainty introduced by estimating the population standard deviation from a small sample. In contrast, the normal distribution has relatively thinner tails, meaning it assigns less probability to extreme values compared to the t distribution. The tails of the normal distribution asymptotically approach zero, indicating that extreme values are highly unlikely.
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distinguish between products tax and production tax
Answer:
Some examples of production taxes are land revenues, stamps and registration fees and tax on profession. Product taxes are paid on the actual volume of production. It is paid per unit of product. For example, excise duty, service tax, sales tax etc.
what are the top three qualities everyone who works in customer service must have to succeed?
The top three qualities that everyone who works in customer service must have to succeed are empathy, patience, and communication skills.
Empathy is the ability to understand and share the feelings of others. It is essential for anyone working in customer service to have empathy as it allows them to identify with the customers' concerns and provide personalized solutions. A customer who feels that their issue is understood and taken seriously is more likely to remain loyal to the brand. Patience is another crucial quality in customer service.
Dealing with irate or frustrated customers requires patience, and a customer service representative who is patient can listen attentively, demonstrate understanding, and provide solutions without becoming defensive or adversarial. Moreover, customer service is not a one-size-fits-all approach. Patience allows the representative to take a step back, assess the situation, and develop effective responses to unique challenges. Finally, excellent communication skills are critical in all aspects of customer service.
Representatives must be able to communicate effectively and efficiently, whether answering questions, resolving issues, or providing excellent service. They should be capable of using language that the customer can understand, explaining complex problems in simple words, and expressing empathy while also being professional. Effective communication inspires customer confidence, promotes satisfaction, and fosters long-term loyalty.
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What kinds of work would you be doing in the Printing Technology Pathway?
Answer:
The printing technology pathway includes occupations involved in prepress, press and binding, or post-press processes. Workers might transform text and pictures for printing plates, or use digital technology for graphics, layout or printing.
Explanation:hope that this helps :)
Which of the following is the best definition of marketing?
All advertising done by a business
O Establishing a target market and maintaining it
O Thinking about what kinds of promotions a business should create
All methods of reaching and attracting potential customers
Answer: Marketing is an organizational function and a set of business activities designed to make profits.
Explanation:
Answer:
All methods of reaching and attracting potential customers.
Explanation:
This is because marketing is the practice of getting customers.
What are some benefits of paying taxes? Check all that apply.
ensuring that the needs of the nation are fulfilled
paying for public works such as highways and museums
reducing the amount of money consumers can spend
slowing growth in the economy
paying for government programs that help citizens
Answer:
A,B,E
Explanation:
got it right on test
Answer:
a b e
Explanation:
right on edge
develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register. also write a seperate paragraph describing what specific tasks would be required to implement the strategy . Include time and cost estimates for each strategy as well.
Accept this risk response method is applicable to both positive and negative risks, i.e., both types of hazards. In this case, you realise the danger but don't do anything to control it. You can either actively or passively acknowledge the danger in order to accept it.
Each risk entered into a risk register should, at the at least, include a description of the risk, the business effect if it materialises (costs, for example), the likelihood that it will, the risk owner(s), how it rates overall in comparison to all other risks, and the risk response. In project management, a risk register serves the objective of keeping track of all recognised hazards and their analyses.
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An arrangement for deferred payments for goods and services is known as
The credit facility is known as an arrangement for deferred payments for goods and services.
What is a credit facility?A credit facility is a kind of loan made in a business or corporate finance context. It permits the borrower to take out money for an extended period of time, in place of reapplying for a loan each time it needs money.
A deferred payment letter of credit, is a business letter of credit that imparts that the receiver will be paid, not at the time the receiver makes a complying presentation, but at a later, specified, maturity date.
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Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5. 2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase for the accident?.
Premium is often paid by people based on some kinds of services offered.
From the picture attached, we can see Royce' premiums for the previous year, which were;
Bodily injury $22.50 Property damage $144.75 Collision $275.75 Comprehensive $100If you add all together, the total premium of the policy was $543
Note that the premiums will increase by 5.2%,
therefore, the new total premium will be = $543 x 1.052 = $571.24
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Experience enables practitioners to use a rough percentage when explaining the strength of a particular tax position. What is the approximate percentage for substantial authority?
a) More than 50%
b) 33%
c) 40%
d) 70%
Based on the information you provided, the approximate percentage for substantial authority is:
a) More than 50%
When explaining the strength of a particular tax position, substantial authority refers to a level of confidence that is greater than 50%, meaning there is a strong likelihood that the tax position would be upheld if challenged by the Internal Revenue Service (IRS).
What is substantial authority?
Substantial Authority denotes that the weight of the evidence favouring a certain item's tax treatment is significantly greater than the weight of the evidence favouring opposing views.
What exactly is a tax defined as?
A tax is a financial contribution that citizens make to the government in exchange for the services it offers.
What is the short response in government?
A group of people who are in charge of running a political entity like a state, country, or monarchy is referred to as the government. An authority with the authority to rule a particular state or a nation in accordance with specific administrative laws is sometimes referred to as a government.
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g what is the contractual relationship between the gc and the a/e? between the owner and the subcontractors? between the contractor and the subcontractors? what role does a cm play?
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is that the A/E will provide professional services for the construction project and the GC will provide construction management and labor. The relationship between the owner and the subcontractors is that the owner will provide payment and the subcontractors will provide labor and materials. The role of a construction manager is to manage and coordinate all aspects of the construction process, including ensuring compliance with contract terms, monitoring costs, and scheduling.
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is typically governed by the terms of the A/E's contract, which sets forth the scope of services and responsibilities of the parties. The owner and subcontractors are typically bound by a contract between the GC and the owner. The GC acts as the middleman between the owner and subcontractors, with the owner delegating authority to the GC to enter into contracts with the subcontractors. The contractor management (CM) role involves managing the construction process on behalf of the owner, including coordinating the activities of the GC and subcontractors, managing the budget and schedule, and performing quality control inspections.
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interview any business owner on impact of crime
Answer:
Businesses that had been affected by crime were found to be 17 to 22 percent less likely to increase employment. Almost half the businesses said that fear of crime among their clients or customers had had a negative impact on their businesses. This figure was particularly high in townships and inner city locations.
Explanation:
I hope this helps you sorry if it doesn’t
Ozmar earns a gross annual salary of $85,000, Marzo earns a gross annual salary of $90,000 and the taxable earnings on their savings combined is $2,000 per year. Their marginal tax rate is 35%. Marzo has a student loan which is paid monthly, the current balance is $25,000 with an interest rate of 1.2%, compounded monthly. This loan will be paid in full in 3 years. While Ozmar was able to purchase a car outright, Marzo purchased a new car 2 years ago at a cost of $22,000, and financed it through the dealership’s plan for 60 months at 1.99% compounded monthly. Payments are monthly. Ozmar and Marzo took your earlier advice about credit card balances and now pay off their balance each month. They use their credit cards only for car expenses and restaurant meals which combined tend to be about $300 per month.
Ozmar and Marzo’s apartment rent includes all utilities plus 2 underground parking spaces for $2,800 per month. Their car insurance combined is $300 per month and tenants insurance is $50 per month, food, entertainment and "other" run at about $650 per month and their joint cell phone bill is $200 per month. Marzo pays $550 per year for parking at work.
Given the prices in the GTA, Ozmar and Marzo understand that they will need to move farther east and/or north to be able to afford to purchase a home. Thus they anticipate Ozmar will need to drive to work and Marzo will have a further drive so they anticipate their car expenses are likely to increase to about $600 per month, plus Ozmar would need to pay for parking at work which is $350 per year.
In addition to a mortgage payment, Marzo and Ozmar would also need to pay property taxes, which they estimate at $2,500 per year, utilities (electricity, water, internet) which they estimate at $300 per month and maintenance which they estimate at $1,200 per year. Marzo and Ozmar have $150000 in savings available for use in a house purchase. They have been examining the market for a while and realize that they will need about $3,000 for closing costs, and would like to keep $15,000 as an emergency fund, which leaves them with a down payment of $132,000. They have seen a property North of Whitby which they are very interested in. It is about 20 years old but has been well maintained, although not upgraded. They believe that they could acquire this property for $700,000. They realize that they do not meet the 20% minimum down payment amount so will have to pay Mortgage Loan Insurance. Thus, they estimate the monthly payments for a 5 year fixed mortgage, with a 25 year amortization period at a rate of 3.59% will be $2,862.91. For a 5 year variable rate, closed mortgage, with a 25 year amortization period at a rate of 2.05%, they estimate their monthly payment would be $2,421.35.
Marzo and Ozmar have received pre-approval for a mortgage up to $700,000 and have determined they will go with the 5 year fixed rate of 3.59%. Before they move forward to purchase the property, they would like to do a comparison of renting versus buying. The information above provides a significant number of estimates for you to use, however, also assume that Ozmar and Marzo could earn an annual return of 2% on their security deposit or downpayment if it was not being used otherwise; that their home owner’s insurance policy would be $1000 per year and that, combining their car insurance policies with their home owner’s policy would reduce the annual car insurance cost by 15%. Also assume an expected increase in property value of 5% over 3 years and that mortgage payments over 3 years would reduce the balance owed by $44,620.10.
Create a table similar to that in Exhibit 7.9 (page 216 in the text) to compare the cost of renting versus buying. The information given provides actual numbers or estimates for the elements in the table.
Based on this table, was the decision to purchase a wise investment? Why or why not?
Marzo and Ozmar are very happy. They have just discovered that their planned family will begin somewhat earlier than originally anticipated. They expect to be parents in 7 months. They are able to purchase creditor insurance and critical illness insurance on their mortgage. They can purchase creditor insurance coverage for $65.59 per month. They can add critical illness for one party for $136.23 per month; if they wish to provide combined insurance for both Ozmar and Marzo, the cost would be $231.60 per month. Provide recommendations (with explanations as to why) regarding creditor insurance. Also provide recommendations (with explanations as to why) regarding including critical illness insurance for Ozmar or Marzo or both.
Based on the comparison table, purchasing the property is a more cost-effective option for Marzo and Ozmar, and they should consider obtaining creditor insurance and critical illness insurance for both parties to protect their investment.
To compare the cost of renting versus buying, we can create a table as follows. Based on this table, the decision to purchase appears to be a wise investment. The net cost after 3 years for buying is significantly less than the total cost of renting over the same period. Additionally, the expected property value after 3 years is higher than the purchase price, which indicates that the property could potentially be sold at a profit in the future.
Regarding creditor insurance, it may be worth considering if Marzo and Ozmar do not have other life insurance policies in place. If they do not, creditor insurance can provide some financial protection in case of job loss, disability, or death. However, if they already have sufficient life insurance coverage, it may not be necessary to purchase creditor insurance.
As for critical illness insurance, it may be worth considering for both Ozmar and Marzo, as it can provide financial protection in case of a serious illness that prevents them from working. However, the decision should be based on their individual health and medical histories, as well as their budget and other insurance coverage. If they decide to purchase critical illness insurance, the combined insurance policy may be more cost-effective than purchasing separate policies for each person.
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A multinational firm is giving you an investment opportunity. If you give them $2150 today, they will in return give you 4,500, 10 years later. If they offer the same interest rate (compounded yearly), and you change your mind and invest with them for another 15 years, how much will you have accumulated?
The investment is for $2150 which will be compounded yearly at a given interest rate, and we will calculate the amount after 10 years and 15 years.According to the given information, the interest is compounded annually. Therefore, we will use the formula for compound interest to calculate the future value of the investment.
By investing $2150 with the multinational firm, we get an opportunity to earn compound interest at a given annual interest rate for 10 years. After 10 years, we will receive $4,500. By using the formula for compound interest, we can calculate that the annual interest rate is 6.063%. If we choose to continue our investment with the multinational firm for another 15 years, our accumulated amount will be $11,635.64. This calculation is done by using the same formula for compound interest with the given principal amount, interest rate, and time period. Compound interest allows us to earn more money on our investment since interest is earned on both the principal and any interest earned.
In conclusion, by investing $2150 today with a multinational firm, we can earn compound interest and receive a return of $4,500 after 10 years. If we choose to continue our investment for another 15 years, we will accumulate $11,635.64.
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