In order to fulfill her goal of increasing earnings, she may either cut expenses or increase sales.
What does a business consist of?Businesses may be for-profit or nonprofit institutions. Associations, partnerships, limited liability company ( llc, and proprietorships are only a few of the various company structures.
Why is business so important?Business has a huge impact on our lives. They begin by creating goods and services that satisfy our needs and wants. Then they hire houses as employees and pay them wages and benefits. Thus, it turns into a source of income for them that they can use to support their lifestyle.
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Jorge Lopez worked 40 hours this week and earned $1,000 gross salary. Federaland state taxes and other withholdings totaled $350. Jorge's gross pay totals $
Jorge Lopez worked 40 hours this week and earned a $1,000 gross salary. Federal and state taxes and other withholdings totaled $350. Jorge's gross pay totals $650.
A tax is a obligatory monetary price or some other kind of levy imposed on a taxpayer (an man or woman or felony entity) by way of a governmental business enterprise as a way to fund government spending and diverse public prices (local, local, or countrywide),[2] and tax compliance refers to coverage movements and individual behaviour aimed toward making sure that taxpayers are paying the right quantity of tax on the proper time and securing the ideal tax allowances and tax reliefs.[3] the first regarded taxation befell in historical Egypt round 3000–2800 BC.
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Answer:
1,000
Explanation:
as reported in the wall street journal, the ceo of pilgrim's pride corp., one of the nation's biggest chicken producers, and three others were indicted for allegedly conspiring to decide how much they would charge for chicken sold to restaurants and grocery stores. this is an example of .
One of the major chicken producers in the country and three other people were charged with colluding to select how much to cost for chicken sold at grocery stores. Price fixing is demonstrated here.
Price fixing: what is it but why is it terrible?By tampering with the free marketplace's capacity to keep prices low, price-fixing agreements limit consumers' surplus because they make it harder for businesses to respond quickly and freely to one someone else's price changes.
Why do firms fix prices?Pricing practices provide businesses the power to avoid market competition. Instead of competing in a market that is highly competitive, producers find it easier and more lucrative to band together and fix pricing. It victimizes customers and lessens the pressure on businesses to maintain competitive prices.
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Suppose you're offered the following three accounts to invest $10,000 for 20 years: 14% simple interest, 4% Interest compounded monthly, and an annuity with quarterly payments of $125 at 9% interest compounded quarterly. Which is the best choice? Round your answers to the nearest cent. Part 1 of 4 The future value of $10,000 using 14% simple interest is $ 28,000 х Part: 1/4 Part 2 of 4 The future value of $10,000 using 4% interest compounded monthly is X
The greatest option among the three is to invest $10,000 at 14% simple interest since its future worth will be higher—$38,000—than that of the other two options
1)
Principal = $10,000
Simple interest rate,
R = 14%
Time = 20 years
$10,000's future value at 14% simple interest = Principal * [(1 + R) * Time]
Future Value = 10,000 * (1 = 14% * 20)
Future Value = 10,000 * (1 + 2.8)
Future Value = 10,000 * 3.8 = 38000
Therefore, $10,000's future worth at 14% simple interest equals $38,000.
2)
Annual Interest rate = 4% compounded monthly
Monthly rate (R) = Annual interest rate / 12
Rate = 4% / 12 = 0.33%
Principal = $10,000
Time = 20 years
Number of months (N) = Time * 12
Time = 20 years * 12 = 240 months
Future worth of $10,000 at 4% annual compounding interest equals Principal * (1 + R)ⁿ
Future Value = = 10,000 * (1 + 0.33%)²⁴⁰
Future Value = 10,000 * 2.2226 = $22,225.82
As a result, the future value of $10,000 at 4% interest per month compounded is $22,225.82.
3)
Quarterly payment (P) = $125
Annual interest rate = 9% (compounded quarterly)
Quarterly rate (R) = Annual interest rate / 4
Rate = 9% / 4 = 2.25%
Time = 20 years
No of quarterly payments (N) = 20 * 4
N = 80
Future value of Annuity = P * [(1 + R)ⁿ - 1] / R
Future Value = 125 * [(1 + 2.25%)⁸⁰ - 1] / 2.25%
Future Value = 125 * 219.1176 = $27,389.70
As a result, the Future Value of an Annuity for quarterly payments of $125 is equal to $27,389.70.
Therefore, the greatest option out of the three is to invest $10,000 at 14% simple interest since it will have a larger Future value ($38,000) than the other two options.
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which two purposes does this paragraph serve? to point out that entrepreneurs in business are people of courage and determinination to explain why entrepreneurial enterprises in business are often unsuccessful to warn against wastefulness in business that characterizes a free market system to inform that technical and economic growth primarily stem from small business enterprises to describe how college students can successfully start a small business enterprise
This line has two purposes: first, it emphasizes the daring and tenacity of business owners, and second, it informs readers that small businesses are largely responsible for technological and economic growth.
Why does the economy growth?The rise or improvement in the market value of the commodities and services generated by an economy during a specific time period, adjusted for inflation, is referred to as economic growth. Statisticians typically use the real gross domestic product growth rate in percent terms to assess such growth. This is the average change over the previous four quarters, or annual average growth rate.
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the crowding-out effect of expansionary fiscal policy suggests that: group of answer choices private investment increases at the expense of government spending. government spending increases at the expense of private investment. saving increases at the expense of investment. imports replace domestic production.
The crowding-out effect of expansionary fiscal policy suggests that government spending increases at the expense of private investment.
Government is the system or group of people that run an organized community, usually a state. In the case of its broad association definition, government usually includes the legislative, executive, and judicial branches.
Government is the vehicle by which an organization's policies are enforced, as well as a mechanism for policy determination. In many countries, government has some sort of constitution, which states its guiding principles and philosophy. The main types of political systems in the modern era are democracy, monarchy, and authoritarian and totalitarian regimes.
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deciding on the global marketing program is the step of the global marketing process. question content area bottom part 1 a. first b. fifth c. fourth d. third e. second
Deciding on the global marketing program is the fifth step of the global marketing process.
What is global marketing?Generally, A global marketing strategy (GMS) is a plan that spans nations from many different areas of the globe and strives to coordinate the marketing activities of a corporation in the marketplaces of these countries. This strategy may also be abbreviated as "GMS."
A GMS should not apply to every single country in the world, but it should be applicable in a number of different areas.
In order to achieve global goals, "global marketing" is described as "marketing on a worldwide scale that takes into account global operational differences, similarities, and possibilities."
Domestic, export, international, multinational, and global marketing are the five phases that make up the development of global marketing. These stages are distinguished from one another by the managerial orientations that they emphasize throughout their respective stages.
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what kind of company is most likely to follow a strict residual distribution policy? all companies a firm whose earnings are cyclical and follow the economy a firm with stable, predictable earnings and investment a firm whose investment needs change often
A firm with stable, predictable earnings and investment kind of company is most likely to follow a strict residual distribution policy.
Investment is the willpower of cash to buy of an asset to acquire an increase in price over a period of time. investment requires a sacrifice of some present asset, together with time, money, or effort. In finance, the purpose of investing is to generate a go back from the invested asset.
Funding is an asset or object obtained with the intention of generating income or appreciation. Appreciation refers to a growth inside the price of an asset over time. when individual purchases a good as funding, the intent isn't always to devour the good but as an alternative to using it inside the future to create wealth
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walmart and the home depot emphasize consistently low prices rather than periodic discounts with a retail pricing strategy called
Walmart and Home Depot emphasize consistently low prices and eliminate most of the markdowns with strategy called everyday low pricing.
What is everyday low price?Everyday low price is a pricing strategy that assures customers of a cheap price all the time without forcing them to wait for discount price occasions or comparison shop. In addition to saving retail businesses the time and money required to mark down prices during sales, EDLP is also thought to increase customer loyalty. An EDLP retailer's price will typically fall between a high-low retailer's discounted price and its non-discounted price. It is typical for rival shops to divide the market into segments using various pricing heuristics. The segments are made up of two distinct groups of consumers with various buying habits for both final purchases and pre-purchase research. They are prepared to conduct research to find discounts and to stockpile goods when deals are available.
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ABC Corporation has three support departments with the following costs and cost drivers:
Support Department Cost Cost Driver
Graphics Production $200,000 number of copies made
Accounting 500,000 number of invoices processed
Personnel 400,000 number of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro Macro Super
Revenues $700,000 $850,000 $650,000
Direct operating expenses 50,000 70,000 100,000
Number of copies made 20,000 30,000 50,000
Number of invoices processed 700 800 500
Number of employees 130 145 125
The support department cost that will be allocated to the Super Division is
a.$125,000
b.$550,000
c.$100,000
d.$350,000
The operating income of the Micro Division after all support department allocations will be
a.$650,000
b.$345,000
c.$610,000
d.$305,000
The support department allocation rate for Graphics Production is
a.$2.00
b.$10.00
c.$6.66
d.$0.50
The support department allocation rate for the Personnel Department is
a.$2,758
b.$1,000
c.$3,200
d.$3,077
Answer:
Answer 1
d. $ 350,000
Answer 2
d. $ 305,000
Answer 3
a. $ 2
Answer 4
b. $ 1000
Explanation:Calculations and workings:
Micro Macro Super
Revenues $ 700,000 $ 850,000 $ 650,000
Operating expenses $ 50,000 $ 70,000 $ 100,000
Overheads
Graphics ($ 2* number of copies made) $ 40,000 $ 60,000 $ 100,000
Accounting ( $ 250* number of invoices processed) $ 175,000 $ 200,000 $ 125,000
Personnel ( $ 1000 * number of employees) $ 130,000 $ 145,000 $ 125,000
Total Suport department costs $ 345,000 $ 405,000 $ 350,000
Net income $ 305,000 $ 375,000 $ 200,000
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Which unique feature of e-commerce is related to the ability to interact with web technology everywhere?.
Answer:
What are unique features of e-commerce?
The seven unique features are Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, and Personalization / Customization.
Explanation:
i would says its Information Density or global reach
complete the sentences with the correct terms. the fed controls the money supply through open market operations. for instance, when the fed buys bonds, this in demand for bonds causes nominal interest rates to . when the fed buys bonds, bank reserves , which reduces the need for banks to borrow. this causes the federal funds rate to .
The fed indirectly controls money supply through the open market operations. For instance, when the fed buys bonds, this increases in demand for bonds causes nominal interest rates to decrease. When the fed buys bonds, bank reserves , increase which reduces the need for banks to borrow. this causes the federal funds rate to decrease.
Advertising Operations is a broad time period that collectively describes the human beings, strategies, and technologies that permit advertising and marketing to function effectively and to scale with fine and consistency.
Important banks conduct open market operations that allows you to regulate the cash supply in the economic system. for example, in India, open marketplace operations are undertaken by way of the Reserve bank of India or RBI.
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list the pre-order, in-order, post-order traversals of the following tree. pre-order traversal: in-order traversal: post-order traversal:
You move from the left subtree to the root, then to the right subtree when using IN order. You move from the root to the left subtree for Preorder before moving to the right subtree.
When using IN order, you go from the left subtree to the root, then to the right subtree. Before traveling to the right subtree, you move from the root to the left subtree for Preorder. You move from the left subtree to the right subtree and then to the root in Post order. A binary tree with nodes is a binary search tree. Every node has a key that denotes its value.
The root node's value is greater than that of the nodes on the left subtree. Additionally, the root node's value is less than that of the nodes on the right subtree. The parent node of both subtrees is the root node.
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an investment of $75 generates after-tax cash flows of $50 in year 1, $80 in year 2, and $120 in year 3. the required rate of return is 20 percent. the net present value is closest to
The net present value of the investment is closest to $91.67
What is the net present value?The net present value is a capital budgeting method that is used to determine the present value of after-tax cash flows from an investment less the amount invested.
When using the net present value, only projects that have a positive net present value are profitable.
The net present value = -amount invested + sum of discounted cash flows
The net present value = -75 + 50/1.20 + 80/1.20² + 120/1.20³ = $91.67
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outstanding debt of home depot trades with a yield to maturity of 8%. the tax rate of home depot is 30%. what is the effective cost of debt of home depot?
The tax rate for Home Depot is 30%, and its outstanding debt trades at an 8% yield to maturity. Home Depot's effective cost of debt will be 5.60%.
Debt is an obligation that obliges a debtor party to pay to another party a creditor a sum of money or some other agreed-upon value. Debt differs from an immediate purchase in that it requires a deferred payment or a series of payments. Debt can be owed by a sovereign state or country, a local government, a company or an individual.
The amount and timing of repayment of principal and interest on commercial debt are usually governed by the terms of the contract. Debt comes in many forms, including loans, bonds, notes, and mortgages. Debt is a type of financial transaction in financial accounting, as opposed to equity. The phrase can also refer to moral obligations and other interactions that have no monetary value in a metaphorical sense.
Hence the correct option is D.
The following question is incomplete, the complete question is-
Outstanding debt of Home Depot trades with a yield to maturity of 8%. The tax rate of Home Depot is 30%. What is the effective cost of debt of Home Depot?
A) 5.88%
B) 8%
C) 6.44%
D) 5.60%
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what world-famous open-air market is known for colorful textiles? tianguis cultural del chopo el rastro otavalo 2. what market is held every sunday in madrid? mercado central el rastro feria artesanal de recoleta 3. what is the free addition that some market vendors give to customers? la chamarra el puesto la ñapa 4. what is not a name for bluejeans? las playeras
Otavalo is the place where the world-famous open-air market for colorful textiles is found. The place is the capital of Ecuador
El Rostro is the name of the market that is held on every Sundays in Madrid. It is called as Flea market.la ñapa is free addition that the market vendors give to the customers. It is also a famous restaurant.las playeras is not the name of the blue jeans. It is a type of shirt.An economic system with few or no restrictions on free market activity is called an open market. A free market is defined by the absence of tariffs, taxes, licensing requirements, subsidies, trade unions, and other laws and practices that impede the functioning of the free market. In an open market, there may be competitive barriers to entry, but regulatory barriers to entry never exist.
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an investor should be cautious when selecting a fund based solely on the manager's past performance because past performance may not be repeated in the future.
It is true that an investor should be cautious when selecting fund based solely on manager's past performance because past performance may not be repeated in future.
Who is an investor?A person who invests is one who takes financial obligations with the hope of making money or receiving an advantage down the road. These funds are typically used by the investor to purchase various types of real estate. A number of assets, including stocks, bonds, money, securities, land, infrastructure, commodities, tokens, and derivatives like put and call options, futures, and forwards, can all be invested in. Investors can anticipate long-term capital gains to continue to be advantageous even if the tax system changes. On the other hand, some people believe that after-tax returns ought to be taken into account, especially during retirement, on the grounds that stock allocation is frequently lower than any returns and ought to be maximized to the greatest extent possible.
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how are the coupon rate and yield to maturity expressed? as a 6-month period rate as an effective annual rate (ear) as an apr that is equal to the ear as an annual percentage rate (apr)
yield to maturity (YTM) is typically expressed as an annual percentage rate (APR) and The coupon rate is stated as an annual percentage rate based on the bond's par, or face value.
If a bond's purchase price is equal to its par value, its coupon rate and yield to maturity are identical. A bond's face value, also known as the stated value of the bond at the time of issuance, as established by the issuing company, is its par value. Par values for most bonds are $100 or $1,000.
However, a bond's market price is unrelated to its par value. In contrast, a bond's market or selling price is affected by a number of variables in addition to its par value. These variables include the coupon rate, the bond's maturity date, the current interest rate environment, and the accessibility of bonds with higher yields.
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which of the following statements about the use of executive agreements by presidents is supported by the data in the pie charts?
The percentage of international agreements that were executive agreements has increased since 1839 is supported by the data in the pie charts.
International agreements are official pacts or commitments made by two or more nations. Bilateral and multilateral agreements are referred to as such by the number of participating nations in the agreement. Generally speaking, "States Parties" refers to the nations that are party to an international agreement. A treaty is any agreement between governments that is enforceable under international law (countries). A treaty may be referred to as a Convention, a Protocol, a Pact, an Accord, etc.; nonetheless, the agreement's terms, not its name, are what define it as a treaty. Thus, despite neither having the word "treaty" in its name, the Geneva Protocol and the Biological Weapons Convention are both treaties. A treaty is expressly defined as a legally binding agreement between nations under American law that needs Senate "advice and consent" in addition to ratification.
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Suppose that the government changes the tax code to allow additional amounts of money to be placed in 401k retirement accounts, increasing the extent to which people can delay their tax obligation (effectively, this is a tax cut on retirement savings). Show the effect by shifting the appropriate curve in the market for savings.
According to this model, what is the result?
The supply curve will be shifted to the right in this situation where the government changes the tax code to allow additional amounts.
Private investment would rise as borrowing costs dropped. Right-shift the supply curve. Demand curves remain stationary.
The supply curve illustrates the relationship between the price of an item or service and the volume delivered over a specific time period. In a typical scenario, the amount supplied will be shown on the horizontal axis and the price will be shown on the left vertical axis.
The law of supply is expressed by the supply curve, which rises from left to right: The amount supplied rises as a certain commodity's price rises (all else being equal).
Hence, the supply curve will shift to the right.
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your portfolio has 20% invested in stock a and 80% invested in stock b. stock a has an expected return of 10% and a volatility of 15%. stock b has an expected return of 12% and volatility of 25%. the correlation between stock a and b is 0.3. what is the variance of your portfolio return?
Your portfolio of investment is: 20% stock A and 80% stock B. The portfolio variance of return is 0.0445
Portfolio variance is a risk assessment that describes how the aggregate actual returns of a portfolio's assets fluctuate over time.
Formula for the portfolio variance is:
Portfolio variance = w₁²σ₁² + w₂²σ₂² + 2w₁w₂Cov₁₂
Where:
w = weight of each asset
σ = standard deviation or volatility of each asset
Cov₁₂ = covariance between two assets.
Cov₁₂ = σ₁σ₂ x Corr₁₂
Parameters given in the problem:
w₁ = 20%
w₂ = 80%
σ₁ = 15%
σ₂ = 25%
Corr₁₂ = 0.3
Compute the covariance:
Cov₁₂ = 15% x 25% x 0.3 = 0.01125
Hence,
Portfolio variance = 0.2² x 0.15² + 0.8² x 0.25² + 2 x 0.2 x 0.8 x 0.01125
= 0.0445
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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Sales are budgeted at $350,000 for November, $330,000 for December, and $320,000 for January.
Collections are expected to be 45% in the month of sale and 55% in the month following the sale.
The cost of goods sold is 75% of sales.
The company would like to maintain ending merchandise inventories equal to 80% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $24,100.
Monthly depreciation is $15,100.
Ignore taxes.
Balance Sheet
October 31
Assets Cash $ 20,100
Accounts receivable 70,100
Merchandise inventory 210,000
Property, plant and equipment, net of $572,100 accumulated depreciation 1,094,100
Total assets $ 1,394,300
Liabilities and Stockholders' Equity Accounts payable $ 254,100
Common stock 820,100
Retained earnings 320,100
Total liabilities and stockholders' equity $ 1,394,300
December cash disbursements for merchandise purchases would be:
Multiple Choice
$241,500
$247,500
$192,000
The December cash disbursements for merchandise purchases would be $241,500
In simple terms, charges mean fee. In accounting phrases, fee is the operational fee that is paid to earn business sales. It approach the outflow of coins in go back for goods or services. charges also can be written because the sum of all the operations that generally convey income.
Depreciation can be defined as a persevering with, permanent and slow lower in the book fee of fixed property. This form of shrinkage is based totally at the fee of belongings utilised in a firm and not on its market fee.
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suppose you're a salesperson for an industrial machine manufacturer. how can you demonstrate to your customers your commitment to building mutually satisfying long-term relationships?
Regularly check in with your customers, and pay close attention after they've placed an order.
If the unhappy client suggests a workable course of action to fix the issue, what should a salesperson do next?when the client and the salesperson have reached an agreement on how to handle the complaint, then Before putting the solution into action, make sure the consumer has reasonable expectations.
What is the most effective technique to address a client complaint?Here is the procedure advised by experts when handling consumer concerns.
1. Read or listen to the customer's complaint.
2. Think about the criticism for a second.
3. Choose the course of action you'll use to solve the issue.
5. Express regret and clarify that you realize the problem.
4. Thank the client for their comments.
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the rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders is called
The demands of its lenders and expectations of its equity holders is called capital cost required rate of return for a corporation is determined by averaging the rates it must provide to its lenders and investors. Capital costs.
The required return that a person or individual who provides capital for a business's start-up is expecting to receive, or the return that an investor is anticipating for investing in a business, can be characterised as the cost of capital. The estimated rate of return that a business or organisation must give to its lenders and investors is therefore known as the cost of capital.The shares that are issued to a company's founder when they relinquish control of it as part of the purchase agreement provided by the business that acquires it are known as founder's shares.
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John has an adjustable life insurance policy and he decides that he no longer needs the large
amount of coverage he has. Therefore, as John’s coverage decreases, his premiums:
Are increased
Are stopped
Remain constant
Are reduced
An adjustable life insurance policy's premiums get cheaper over time, and the cash value grows on its own. As a result, you are essentially earning money invisibly that will eventually be applied to your death benefit.
What exactly is life insurance with variable premiums?A cross between term and whole life insurance, adjustable life insurance gives policyholders the flexibility to change the terms of their coverage, such as the length of the protection period, the face value, the premiums, and the frequency of premium payments.
How does a life insurance coverage that is changeable operate?Permanent life insurance comes in the form of adjustable life insurance. As long as payments are paid, adjustable life insurance, unlike term insurance, remains in force during your entire lifetime. The cash value amount, premium payments, and even the death benefit can normally be be changed by policyholders.
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how do financial analysts use the monte carlo simulation or other models to help them evaluate an investment or project?
The probability of various outcomes in a process that cannot be easily anticipated due to the interference of random factors is modelled using Monte Carlo simulations.
The probability of various outcomes in a process that cannot be easily anticipated due to the interference of random factors is modelled using Monte Carlo simulations. It is a method for comprehending how risk and uncertainty affect forecasting and prediction models. a.k.a. simulation of probability. Since chance and random results are essential to the modeling technique, just as they are to games like roulette, dice, and slot machines, Monte Carlo simulations are called after the famous gambling district in Monaco.
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Journal entries record activities from what?
Answer:
financial transactions coming in and out of your business
Explanation:brainliest?
42. in activity-based costing, what would you call the cost of the materials, paint, screws, and labor all needed to produce a product? cost driver mixed costs activity costs cost pool
the cost of the materials, paint, screws, and labor all needed to produce a product is called a cost pool.
Using the activity-based costing (ABC) method, overhead and indirect expenses are allocated to linked goods and services. In contrast to conventional costing techniques, this accounting method of costing acknowledges the connection between costs, overhead activities, and manufactured goods, allocating indirect costs to products less randomly. However, some indirect expenditures, such the salary of the management and office personnel, are challenging to relate to a specific product. Activity-based costing (ABC) is mostly employed in the manufacturing sector since it improves the accuracy of cost data, resulting in almost actual costs and a better classification of the costs a company incurs throughout production.
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If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.
false
If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date. FALSE
A corporation is an business enterprise—normally a set of people or a organisation—authorized through the country to behave as a single entity and recognized as such in law for certain purposes. Early included entities had been set up by way of constitution. most jurisdictions now permit the creation of latest organizations thru registration.
Below the law, businesses possess a few of the identical rights and responsibilities as people. they are able to enter contracts, mortgage and borrow money, sue and be sued, hire personnel, very own belongings, and pay taxes.
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In a situation where a car salesman is selling cars on behalf of the dealer, the salesman is the a. Principal b. Agent c. Both of the above c. None of the above
In a situation where a car salesman is selling cars on behalf of the dealer, the salesman is the Principal
In a principal-agent relationship, one entity formally designates another to act on its behalf. When there is a principle-agent connection, the agent represents the principal and shouldn't have any competing interests when performing the act. The law of agency defines rules for a connection known as "agency," which is the relationship between the principle and the agent.
To the extent that the principal gives reasonable instructions, the agent is accountable for carrying out the responsibilities assigned by the principal. The agent also has a duty to avoid doing anything to purposefully hurt the principal.
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Which is true of variable-rate loans?
O The rate can only go up.
O The rate can only go down.
O The rate can go up or down, depending upon the index it is tied too.
O The interest rate can fall below 0
Answer:
c is the answer
Explanation:
The statement true of variable-rate loans is The rate can go up or down, depending upon the index it is tied to. Thus the correct option is C.
What are variable-rate loans?Borrowing with a variable rate means that the interest rate will change over time in accordance with market conditions. It is predicated on a fundamental benchmark interest rate or index, which fluctuates often with the market.
Since their initial rates of interest are typically lower than those of fixed-rate loans, the rates and payments are subject to fluctuation. Individuals are assessed an additional premium by banks and other financial institutions beyond this benchmark rate.
In addition to the payment schedule, variable-interest-rate loans operate much like credit cards. Variable interest rates may rise to the point that the borrower finds it impossible to repay the loan.
Therefore, option C is appropriate.
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