A business strategy is a clearly defined set of plans, activities, and objectives that describes how a company will compete in one or more markets with one or more products or services.
When a corporation doesn't want to cover all of the broad topics and only wants to be focused on a few areas of interest, it uses a focused strategy to concentrate on specific segments. This enables the business to do a thorough analysis of a specific market segment, which enables it to specialise in that market.
In contrast to broad and generic business strategies, the company seeks to cover a wide region rather than being focused on its core areas by targeting very broad or diverse sectors. The primary disadvantage of the broad generic business strategy is that it prevents the company from concentrating solely on one area of expertise, preventing it from specialising or becoming an expert in a particular market niche.Focused strategies can be more advantageous for businesses since they will be more customer-focused and continually thrive for product growth, which will lead to happier customers. Focused strategy also enables businesses to concentrate on coming up with new, creative methods to save costs, giving them an advantage over rivals.
A broad, generic business strategy might be appropriate for firms that produce goods with little rivalry and are mainly interested in growing their geographic reach. Despite this, it poses a greater risk than a company with a focused strategy does due to its lack of product specialised knowledge.
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The heading on the statement of cash flows identifies all of the following except A. The company
B. The time period covered by the statement C. The type of statement D. The preparer of the statement
The correct option is D) The preparer of the statement. The heading on the statement of cash flows identifies all of the following except D. The preparer of the statement.
The heading of a statement of cash flows typically includes information such as the company name (option A), the time period covered by the statement (option B), and the type of statement (option C). These details help provide context and clarify the purpose of the statement.
However, the heading typically does not identify the preparer of the statement. The preparer of the statement is usually mentioned elsewhere, such as in the financial statement disclosures or the accompanying notes. The heading primarily focuses on providing essential information about the company, the time period, and the type of statement to ensure clarity and proper understanding of the information presented in the statement of cash flows.
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When the government attempts to improve equality in an economy the result is often?
Answer:
a reduction in efficiency
Explanation:
The term "economy" was coined from Greek, meaning 'the one manages a household.' Economy primarily deals with the concept of scarcity. An item is considered as a scarce in the society when all in that society cannot posses or have all of that they want of the item.
And efficiency means the society is getting most of it from the scarce item in the market. The government policies are designed to tradeoff between the equity and efficiency. The government always attempts to increase the equality and to decrease the efficiency in an economy.
What are some considerations in choosing a financial institution? which one do you think would be the most important consideration for you in choosing a financial institution?.
When selecting a financial institution, factors including how quickly the bank answers, how long they are open on the weekends, the notary services they provide, the loans they offer, and their financial stability should all be taken into account.
The institution's financial stability is the most crucial aspect to take into account since you should only trust institutions with a high level of stability.
A. We have to consider the minimum account balance and retest rates.
B. Fees about types of accounts
C. At. Availability and fees
D. Online service availability
A Financial Institution (FI) is what?
A corporation that deals with financial and monetary activities such as deposits, loans, investments, and currency exchange are known as a financial institution (FI). Banks, trust companies, insurance companies, brokerage firms, and investment dealers are just a few of the many business activities that fall under the umbrella term "financial institutions" in the financial services industry.
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6. Identify a change in technology during each of the time periods in history below that you believe improved the
way marketing activities were completed. List the example and explain how it contributed to marketing during
that time.
(a) 1900s to 1930s
(b) 1930s to 1950s
(c) 1950s to 1980s
(d) 1980s to today
Answer:
Answer:
Prior to the 1950s, the production orientation generally held true due to the growing numbers of affluent and middle class people that capitalism had created.
Say’s Law states that the “production of commodities creates, and is the one and universal cause which creates, a market for the commodities produced”.
The emphasis of firms adopting a production orientation of marketing would have been based on the theory of economies of scale, which are the cost advantages that an enterprise obtains due to expansion.
In a well-constructed paragraph, evaluate the significance of government to the economic well-being of the nation or people. Include 3 specific examples from the module to support your position and explain how each of them proves your point.
20 points: takes a position about the significance of the role of government
30 points: includes three examples from the module to support that position
30 points: thoroughly explains the connection between the examples and position on the role of the government
Explanation:
5.From which of the following, we get more sun's energy-
1 point
Eating other people
The importance of the government for the economic well-being of the nation and the people is to create public policies that encourage the creation of new businesses capable of generating jobs and increasing the quality of life.
Free market systemIt is an economic model that is based on greater freedom to conduct business, without government intervention. The free market is determined by the law of supply and demand.
Therefore, the free market system guarantees greater economic development in a country, heating up the economy, generating jobs and increasing the purchasing power and well-being of the population.
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A nonprofit organization is trying to convince a mayor to adopt a Citywide recycling program the group includes this sentence and its presentation according to the governmental sources 75% of waste is recycled wool but only 30% is actually recycled which type of hook is it being used A)call to action B)funny story C)question D)statistic
Answer: call to action
Explanation:
The answer to the question is call to action because:
The non-profit organization wants the mayor to adopt a citywide recycling program. The organization wants the mayor to take action against pollution by adopting this program. This is an example of call to action.
Best of Luck!
Answer:
d
Explanation:
In cell H4, calculate the donation amount by multiplying the Streaming Revenues by the percentage in cell I1, using absolute references as needed
Answer:
=G4*$I$1
Explanation:
Answer:
=Table1[Streaming Revenues]-Table1[Donation]
Explanation:
g. if a competitive industry confronted the same demand and costs, how much output would it produce in the short run? (enter the closest whole unit of output.)
In the short run, if a competitive industry faced the same demand and costs, the industry would produce at the point where marginal cost (MC) is equal to marginal revenue (MR).This point is known as the profit-maximizing point where a firm maximizes its profits by producing the output level where MC=MR.
At this point, the firm makes zero economic profits. In the short run, a firm can only vary its output by varying the quantity of variable factors that it uses, such as labor, raw materials, and energy. It means that the short-run average cost curve (SAC) slopes downwards initially as the firm increases its output by using more variable factors.
But, SAC will eventually begin to rise due to the law of diminishing returns, as the firm will start experiencing diminishing returns when the input is increased beyond a certain level. Therefore, at the profit-maximizing output level, a firm in a competitive industry would produce the output where MC=MR, as long as this output is greater than or equal to the average variable cost (AVC).If the output is less than the AVC, the firm would shut down in the short run.
This is because it would incur less loss by not producing than by producing the output at the market price that is below the AVC. The amount of output the industry would produce in the short run can be calculated by: Output = (Market price - Average variable cost) × Total industry output
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Companies that adopt information technologies when their competitive potential has been demonstrated and are bug-free are called__
a) Late adopters
b) majority companies
c) early adopters
d) innovators
c) Early adopters this is a correct answer
Early adopters are companies that adopt new technologies or innovations relatively early in the product lifecycle, typically after the technology has been proven and its competitive potential has been demonstrated. They are willing to take risks and embrace new technologies before they become mainstream. Early adopters are often seen as industry leaders and innovators, as they leverage technology to gain a competitive advantage in the market. They are willing to invest in new solutions and explore their potential benefits. In contrast, late adopters are companies that adopt technologies or innovations later in the product lifecycle, after they have become more established and widely adopted by others.
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what would happen to a monthly payment if the intrest rate increased
Answer:Your interest rate and the monthly payment will remain the same
Explanation:If you have a fixed-rate mortgage, the rising rate will have no impact on your loan: Your interest rate and the monthly payment will remain the same.
The monthly payment would increase if the interest rate is increased.
The monthly payment is the amount a person has to pay every month over the time period of the loan to pay off the loan. Interest is the additional amount a lender has to pay along with the principal amount when they avail a loan.
A loan with a higher interest rate means that the person will have to pay back more money and hence higher monthly payments as compared to someone who has a lower rate interest rate for the same amount and for the same time period.
For example, if you borrow $200 with a 5% interest rate you will have to pay back a total of $210 and if this is over 10 months then you will have to pay $21 every month. Now say you borrow the same amount for the same time period but with a 10% interest rate, then you will have to pay back a total of $220 and this means your monthly payment will be $21. Therefore monthly payment increases with the interest rate.
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A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):
A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):need for achievement.
What is need for achievement?Need for achievement can be defined as the way in which a person is determine to achieve their goals or when a person is always eager to achieve their set goals and objectives.
Hence, the personalities display by the business executives is called need for achievement as the executives feels the need to win in everything he does,.
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In a free market system, the concept of consumer sovereignty means that.
The concept of sovereignty in a free market system means that consumers have the power to decide through their actions which goods and products will be produced.
Free market systemIt corresponds to the independent and decentralized economic system where exchanges and negotiations between individuals and companies take place without government interference.
Therefore, in a free market system, it is impacted by the law of supply and demand, where the consumer regulates decisions through his actions.
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In the short run, an unexpected increase in prices will:.
Answer:
will improve the profit margins of firms and thereby induce them to expand output in the short run.
After five years, William paid off his student loan and the car loan. He saved $60,000 to make a down payment on the house purchase. In the last five years, William's annual salary has increased at an average yearly rate of 2.5%. During the same time, his expenses increased by 2.5% per year as well. 6. Calculate William's yearly salary and monthly take-home pay after five years. 7. Calculate his monthly rent and utilities after five years and round it up to the next $50 mark. 8. William wants to buy a house. He talked with a realtor and found a house that he really likes. The asking price of the house is $500,000; the realtor thinks that William can purchase the house for $480,000. After a $60,000 down payment, William's total home loan amount would be $420,000. Based on his current excellent credit score and no outstanding loans, William was approved for a 30 -year, fixed-rate mortgage for 5% per year compounded monthly. If William decides to purchase the house, what would be the monthly home loan payment? For simplicity, William chose to ignore the closing fees and other expenses associated with the purchase of the house. 9. If William decides to purchase the house, he will pay property taxes, home insurance, and private mortgage insurance. Unlike when renting, he would also be responsible for repairs and general maintenance of his house. In addition, the utility cost of the house is likely to be higher than that of his apartment. Estimate the above-mentioned costs per month. Add these costs to the monthly home loan payment to determine the total monthly expense of buying a house. Compare this number with the number calculated in part 7. 10. William realized that he was facing the classic buy-versus-rent decision. It is time for him to apply some of the analytical tools he had acquired in the Engineering Economics course. In the US, on average, the house price increases by 3 percent per year. Given his mortgage rate of 5%, William will lose money by purchasing the house. On the other hand, if he decides to continue to rent, he will lose the monthly rent. Conduct an incremental analysis using the IRR method to determine whether purchasing the house is economically advisable. For this analysis, you should consider the price of the house at the end of 30 years. Also, remember that William's personal MARR is 6% compounded monthly. Page 3 of 3 William needs to do some financial planning for which he has selected a 5-year time frame. At the end of 5 years, he'd like to have paid off his current student loan and credit card debt. Luckily, William received $10,000 as a signing bonus from his employer that he used to pay off the credit card debt. William saved the remaining $6000 to make a down payment on the purchase of a new vehicle. William also wants to accumulate $60,000 for a down payment on a house. In addition, William would like to put aside 10% of his take-home salary for retirement. Case Study Description William Sullivan just graduated with a bachelor's degree in engineering and landed a new job in Lafayette, IN with a starting annual salary of $76,000. There are a number of things that he would like to do with his newfound "wealth." For starters, he needs to begin repaying his student loans (totaling $32,000 ) and he'd like to reduce some outstanding balances on credit cards (totaling $4,000 ). William also needs to purchase a car to get to work and would like to put money aside to purchase a house in the future. Last, but not least, his current job doesn't provide any retirement benefits, therefore, William wants to put some money aside for his eventual retirement.
After five years, William's yearly salary would be $81,520 and his monthly take-home pay would be approximately $6,793.
His monthly rent and utilities after five years would round up to the next $50 mark, which is $1,700.
If William decides to purchase the house for $480,000 with a $60,000 down payment, his total home loan amount would be $420,000.
The monthly home loan payment would be $2,524. Adding estimated costs for property taxes, home insurance, private mortgage insurance, repairs, maintenance, and higher utility costs to the monthly home loan payment, the total monthly expense of buying a house would be determined.
This amount can be compared with the monthly rent and utilities cost calculated earlier.
To assess the economic advisability of purchasing the house, an incremental analysis using the IRR method can be conducted, considering the price of the house at the end of 30 years, the mortgage rate of 5%, and William's personal MARR of 6% compounded monthly.
After five years, William's annual salary would increase at an average yearly rate of 2.5%. Using the compound interest formula, his future salary after five years can be calculated $81,520. Dividing the yearly salary by 12 months gives a monthly take-home pay of approximately $6,793.
For the monthly rent and utilities after five years, rounding up to the next $50 mark, we can estimate the cost as $1,700.
If William decides to purchase the house for $480,000 with a $60,000 down payment, the remaining home loan amount would be $420,000. Using the mortgage rate of 5% compounded monthly and the loan term of 30 years, the monthly home loan payment can be calculated using the formula for a fixed-rate mortgage. This results in a monthly payment of $2,524.
To determine the total monthly expense of buying a house, additional costs need to be considered. These include property taxes, home insurance, private mortgage insurance, repairs, maintenance, and higher utility costs compared to renting. These costs can be estimated and added to the monthly home loan payment calculated earlier.
To assess the economic advisability of purchasing the house, an incremental analysis using the IRR method can be conducted. This analysis takes into account factors such as the expected price of the house at the end of 30 years, the mortgage rate of 5%, and William's personal MARR of 6% compounded monthly.
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Fill in the blank: ___ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Deception is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
Deception is intentional and occurs when someone purposefully withholds or misrepresents information to mislead another individual or group. This may be done through lies, omissions, or by using false statements.
It can also involve exaggerating or embellishing the truth, or using different forms of communication such as body language to deceive someone. Deception can have serious consequences and should always be avoided.
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A financial institution that accepts deposits, makes loans, and provides other
financial services is a(n):
A. contractual institution.
B. depository institution.
C. fractional reserve institution.
D. investment institution.
Answer:
B. depository institution.
Explanation:
Depository financial institutions provide customers with a wide range of financial services. They accept customer's deposits, issue loans, process checks, facilitate local and international payment, among others.
Depository financial services comprise commercial banks that are profits oriented and not-for-profit institutions such as credit unions and thrift institutions. Commercial banks charge a higher interest rate on loan issued than credit unions. However, banks can issue bigger loans than credit unions.
Answer:it’s not B
Explanation:
Got wrong on A.P.E.X
Public subsidy for tuition payment at a private school is referred to as a _____. Group of answer choices
Public subsidy for tuition payment at a private school is referred to as a A. Voucher.
What is a voucher ?A voucher is a form of government subsidy that provides families with public funds to pay for the tuition costs at a private school. This is often done as an alternative to public school education, and is meant to give parents more choice in selecting a school that fits their child's needs.
Vouchers are controversial, with some arguing that they help to promote school choice and provide students with access to higher-quality education, while others argue that they divert public funds away from public schools and may lead to increased segregation and inequality.
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Options include:
a: voucher b. private school c. religious school d. charter school.
Answer: Voucher
Explanation:
According to the theory of mercantilism, a country has a favorable balance of trade when.
When a country could increase its wealth and power by obtaining as much gold and silver as possible and then sold more goods than it bought then it has a favorable balance of trade. In other words, whenever a nation's value of their exports is greater than the value of their imports then it has a favorable balance of trade. This is all according to the Theory of Mercantilism.
A system where more products leave the country to be sold than there were commodities going into the country to be bought was the goal of the colonialists' medieval theory of mercantilism, which is a set of state policies for the control of economic activities and trade.
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There are many – in a competitive market. Firms in this market sell very – products, and each firm also has – to the market. Each firm is also considered a price –.
There are many sellers in a competitive market. Firms in this market sell very similar products, and each firm also has free entry and exit to the market. Each firm is also considered a price taker.
What is a competitive market?A competitive market is a market where there are buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
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What do spot stock and assortment warehouses have in common with water and rail transportation modes?.
Spot stock and assortment warehouses have in common with water and rail transportation modes that they tend to increase the amount of inventory in the system.
A warehouse is a building for the purpose of storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport companies, customs, etc. These are usually large, simple buildings in industrial areas on the outskirts of towns or villages.
Warehouses often have loading docks for loading and unloading goods from trucks. Sometimes warehouses are designed to load and unload goods directly from railways, airports or seaports. They often have cranes and forklifts to move the goods, which are usually placed on ISO standard pallets and then placed on pallet racks.
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A company produces 10 items, charges $45 per item. When it produces 20 items, it charges $40 per item. Cost to produce 10 items is $450, cost to produce 20 items is $650. What is the price, cost, revenue, profit functions. What is the break-even points, max profit and items to produce to get max profit.
Answer:
a. The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)
b. Break-even point = Total Revenue = Total Cost
= $450 = $450
break-even point in units = 10 items
c. Maximum profit = $150
Items to produce to get max profit = 20 items
Explanation:
a) Data and Calculations:
Sales Revenue for 10 items = $450 ($45 * 10)
Cost of sales for 10 items = $450
Sales Revenue for 20 items = $800 ($40 * 20)
Cost of sales for 20 items = $650
The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)
For 10 items, function yields = {($45 * 10) - $450} = 0
For 20 items, function yields = {($40 * 20) - $650} = $150
Suppose the skills needed to perform the work in the two industries are identical, and the supply of labor to the two industries is fixed at 6,000 workers per day. What will be the equilibrium wage, and how many workers will work in each industry?
Answer and Explanation:
The computation of the equilibrium wages and the number of workers in each industry is as follows:
Since the supply of labor is 6,000
As per the attached graph, the common rate is $8 per hour so if we take 2000 workers in industry A and 4000 workers in industry b
So, the equilibrium wage would be $8
Hence, the same would be considered and relevant too
In 2011 oil production in libya was interrupted by political unrest. at the same time, the demand for oil by china continued to rise.
a. demonstrate the impact on the quantity of oil bought and sold. instructions: draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s). in the market for oil, compared to the initial equilibrium (e0), the impact of these events on price is and the impact on quantity is .
b. oil production in libya returned to its original levels by the end of 2012. what was the likely effect on equilibrium oil price and quantity? compared to the equilibrium identified in part a, price will and quantity will .
Your ______ is the place of residence used to determine your automobile insurance premiums
The primary determinant for calculating automobile insurance premiums is the place of residence, as it directly impacts the risk factors associated with the insured vehicle.
When determining automobile insurance premiums, insurance providers consider several factors, such as the driver's age, driving history, type of vehicle, and most importantly, the place of residence. The location where a person lives plays a crucial role in assessing the risk associated with insuring their vehicle. Insurance companies analyze data on accident rates, theft rates, vandalism, and other relevant factors specific to the geographic area.
Areas with higher crime rates, congested traffic, or a history of frequent accidents may be considered higher risk, resulting in higher insurance premiums. Conversely, areas with low crime rates, less traffic congestion, and a lower incidence of accidents may lead to lower premiums. Ultimately, the place of residence is a key factor in determining the cost of automobile insurance.
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In some complex production processes, such as nuclear power plants, some inputs have to be treated as being fixed even in the long run. a. True b. False
The statement is True. In some complex production processes, such as nuclear power plants, certain inputs are considered fixed in the long run due to various reasons.
For example, the nuclear fuel used in a nuclear power plant is considered a fixed input as it cannot be easily substituted or changed without significant costs or safety risks. Similarly, the equipment and infrastructure used in the production process, such as reactors and containment vessels, are also considered fixed inputs due to their high capital costs and long lifetimes.
Therefore, it can be concluded that in certain complex production processes like nuclear power plants, some inputs have to be treated as fixed even in the long run. This is important to consider for businesses and industries that rely on such processes, as it affects their long-term planning and decision-making.
In summary, the statement that some inputs have to be treated as fixed even in the long run in complex production processes such as nuclear power plants is true.
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What types of procedures in schools could benefit from TQM? If students are regularly late for classes, how can the school use TQM tools to help solve the problem?
Industry Characteristics
Quiz Active
1
3
5
This market structure might disappear due to advances in technology or if a buyer finds an acceptable alternate.
O monopolistic competition
O a monopoly
O an oligopoly
perfect competition
A monopoly market structure might disappear due to advances in technology or if a buyer finds an acceptable alternate. Thus, option 'B' is the correct option.
What is a monopoly market?A market arrangement with only one seller and one type of goods is available. As the only vendor of the products with no viable alternatives, the seller in a monopoly market has no rivals. A single seller of commodities is created in a monopoly market by variables such as a government license, resource ownership, copyright, patent, and high entry costs.
These characteristics collectively prevent additional sellers from entering the market. Monopolies also have access to information that other merchants do not.
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company manufactures pillows. the operating budget was based on production of pillows, with machine-hours allowed per pillow. budgeted variable overhead per hour was . actual production for was pillows using machine-hours. actual variable costs were per machine-hour. calculate the following: a. the budgeted variable overhead for b. the variable overhead spending variance c. the variable overhead efficiency variance
a. The budgeted variable overhead is $468,750.
b. The variable overhead spending variance is $38,100 Favorable
c. The variable overhead efficiency variance is $30,000 Favorable
What is variable overhead?Variable overhead is a cost of running a business that varies with operational activity. Variable overheads rise and fall in lockstep with production output. Overheads, such as administrative overhead, are often a set cost.
The variable manufacturing overhead controllable variance reflects how effectively the company stuck to its budget. The difference between the planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced is the fixed factory overhead volume variance.
a. The budgeted variable overhead for 2017 = Budgeted hours * Variable overhead rate per hour
= (25000*0.75)*$25 = $468,750
b. Variable overhead spending variance = (SR - AR) * AH = ($25 - $23) * 19050 = $38,100 Favorable
c. Variable overhead efficiency variance = (SH - AH) * SR = (27000*0.75 - 19050) * $25 = $30,000 Favorable
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which trade sanction (embargo or subsidy) would be more effective in protecting domestic jobs? EXPLAIN WHY!!!
Answer:
International trade increases the number of goods that domestic consumers can choose from, decreases the cost of those goods through increased competition, and allows domestic industries to ship their products abroad. While all of these effects seem beneficial, free trade isn't widely accepted as completely beneficial to all parties
In simplest terms, a tariff is a tax. It adds to the cost borne by consumers of imported goods and is one of several trade policies that a country can enact. Tariffs are paid to the customs authority of the country imposing the tariff. Tariffs on imports coming into the United States, for example, are collected by Customs and Border Protection, acting on behalf of the Commerce Department.6 7 In the U.K., it's HM Revenue & Customs (HMRC) that collects the money.
Madam Shanna plans to buy a new car which cost RM 60,000 from a bank loan with an interest of 9% per year compounded every month. She will be required to pay 10% of down payment first and the balance will be paid by monthly installment for 7 years. Due to the high interest, she seeks help from a cooperative at her workplace. The interest imposed by the cooperative is slightly low which is 6% per year compounded every month. But in order to get a loan from the cooperative, one must become a member first for at least one year. Since she is just become a member, she is only entitling for the loan one year from now. She plans to proceed with the bank loan now and for next year she will continue the loan with the cooperative. The tenure will be for 7 years overall. (i) Calculate how much is the monthly installment to the bank? (ii) Calculate how much is the monthly installment to the cooperative?
The monthly installment to the bank will be approximately RM 804.78.
The monthly installment to the cooperative will be approximately RM 664.95.
(i) To calculate the monthly installment for the bank loan, we can use the formula for the present value of an annuity. The loan amount is RM 60,000 minus the down payment of 10%, which is RM 6,000.
Loan amount = RM 60,000 - RM 6,000 = RM 54,000
The interest rate is 9% per year, compounded monthly. The loan tenure is 7 years, which means 7 x 12 = 84 months.
Using the formula:
Monthly installment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
First, we need to convert the annual interest rate to a monthly interest rate:
Monthly interest rate = (1 + Annual interest rate)^(1/12) - 1
= (1 + 0.09)^(1/12) - 1
≈ 0.00742
Plugging the values into the formula:
Monthly installment = (RM 54,000 * 0.00742) / (1 - (1 + 0.00742)^(-84))
≈ RM 804.78
Therefore, the monthly installment to the bank will be approximately RM 804.78.
(ii) Since Madam Shanna is only eligible for the cooperative loan one year from now, the loan tenure with the cooperative will be 6 years (7 years - 1 year). The loan amount for the cooperative will be the remaining balance after deducting the down payment and one year of payments made to the bank.
Remaining balance = Loan amount - (Monthly installment * Number of months)
Remaining balance = RM 54,000 - (RM 804.78 * 12)
= RM 43,336.16
The interest rate for the cooperative loan is 6% per year, compounded monthly.
Using the same formula as above with the adjusted values:
Monthly installment = (Remaining balance * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
Monthly interest rate = (1 + Annual interest rate)^(1/12) - 1
= (1 + 0.06)^(1/12) - 1
≈ 0.00488
Monthly installment = (RM 43,336.16 * 0.00488) / (1 - (1 + 0.00488)^(-72))
≈ RM 664.95
Therefore, the monthly installment to the cooperative will be approximately RM 664.95.
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