The owners of a chain of fast-food restaurants spend $24 million installing donut makers in all their restaurants. This is expected to increase cash flows by $9 million per year for the next five years. If the discount rate is 5.2%,were the owners correct in making the decision to install donut makers?
A. Yes, as it has a net present value (NPV) of $15 million.
B.No, as it has a net present value (NPV) of −$1 million.
C.No, as it has a net present value (NPV) of −$3 million.
D.Yes, as it has a net present value (NPV) of $9 million.
Answers
If the discount rate is 5.2%, the owners were correct in making the decision to install donut makers as it has a net present value (NPV) of $15 million. Hence, the correct answer is option A.
For calculating the Net Present Value(NPV), cash flows of $9 million per year for the next five years need to be discounted at the given discount rate of 5.2%.
Year 1 - 9 × 0.9506 = 8.5554
Year 2 - 9 × 0.9036 = 8.1324
Year 3 - 9 × 0.8570 = 7.7310
Year 4 - 9 × 0.8165 = 7.3485
Year 5 - 9 × 0.7761 = 6.9849
Total discounted inflows = 38.7522
NPV = Present Value of Cash Inflows - Initial Investment
NPV = 38.7522 - 24 = 14.7522
which roughly equals $15 million.
Hence the owners were correct in making the decision to install donut makers
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Related Questions
do you feel that countries and companies need explicit strategies for technology development, given the tremendous amount of largely spontaneous creativity that occurs today, often in areas where new technologies are not expected to exert a great influence.
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Countries and businesses require explicit strategies for technological development, according to the current market and business scenario, companies and countries use the most recent and up-to-date technologies.
What is meant by explicit strategies?Explicit strategies for technological development are unnecessary for countries and businesses. They may desire it in order to improve business processes and adapt to new technologies. Explicit strategies are those that are well defined and implemented in order to have clear technological development to the specified business structures. Implicit strategies, on the other hand, tend to confine companies and countries to a specific way of thinking, resulting in more concise technological development. This strategy would aid in simulating innovation and creativity in technological development.Because of the increase in technological advancement and Internet usage, our reliance on technology and its applications has changed in all aspects of our daily lives. Businesses must address the current demands of modern customers and the market, so IT-enabled solutions are required to achieve organizational goals and objectives.To learn more about strategy refer to :
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Yes i feel that countries and companies need explicit strategies for technology development, given the tremendous amount of largely...in areas where new technologies are not expected to exert a great influence.
Give a brief account on technological development.The process of developing new technologies or methods through invention, innovation, and spread is known as technological change (TC) or technological development. In essence, technological change includes the creation of technologies (including processes) and their commercialization or release as open source through research and development (producing emerging technologies), the continuous improvement of technologies (in which they frequently become less expensive), and the dissemination of technologies throughout industry or society (which sometimes involves disruption and convergence). To put it simply, better and more technology are the foundations of technological change. The "Linear Model of Invention," which was once used to illustrate technological change, has largely been abandoned in favour of a model of technological change that incorporates innovation at all stages of research.
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ation in Business organizations
5
Select the correct answer.
Which phrase correctly defines the motives of a business?
OA. satisfying the needs of people
OB. helping a country's economy grow
OC. incurring expenses
OD. earning profits and providing value in the form of goods or services
Answers
Answer:
D. earning profits and providing value in the form of goods or services
Explanation:
Businesses are set-up to make profits. Entrepreneurs risk their resources, capital, and time with expectations to make a profit. For a business to be profitable, it must offer products or services that provide solutions to customers' problems. The reward or motivation that business people get for engaging in business is the profits realized.
Businesses face competition from other businesses offering the same products and services. To remain relevant and profitable, it must offer goods and services that give satisfaction to the customers.
What type of marketing is generally characterized by limited communications and little or no ongoing relationship between the buyer and seller?.
Answers
A type of marketing that is generally characterized by limited communications and little or no ongoing relationship between the buyer and seller is transactional marketing.
What is transactional marketing?
Transactional marketing is one business strategy that focuses on single "point of sale" transactions. This strategy emphasizes is on maximizing the volume and efficiency of individual sales rather than developing a relationship with the buyer. The advantage of this strategy is the cost-effective strategy to build a sales model. It's because the strategy doesn't focus on brand image and the promotional costs are low. The example of transactional marketing is a shopping channel on TV advertising a new product and provides a phone number or website to buy the product in that moment.
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Which of the following would increase aggregate demand?
Answers
Increase in income
Explanation:
does anyone know how this is done? i need to know asap due in a while
Answers
a) The method used to calculate GDP should be the expenditure approach, which adds up total consumption (C), investment (I), government spending (G), and net exports (X-M).
Solution to the rest of the questions in detailb) Using the expenditure approach, the GDP can be calculated as follows:
GDP = C + I + G + (X - M) = 30 + 15 + 20 + (50 - 70) = 25.
c) The value of net exports can be calculated as:
Net exports = Exports - Imports = 50 - 70 = -20
d) The method that cannot be used with the given data is the income approach.
e) The data is incomplete because the information provided only covers some of the components of GDP, such as consumption, exports, rent, investment, government spending, and wages. Information on other components, such as net taxes, subsidies, and depreciation, is not provided, making the data incomplete for calculating GDP using the income approach.
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Economic theories and principles are important and useful. Our clients may not understand them like we do. When they encounter a real estate problem, they might not see the whole picture. The textbook contains these theories and principles, but it does not teach us how to apply them. In this exercise, we will try to apply the knowledge in chapter three. As real estate agents, some of the fundamental roles are to keep clients informed, answer their questions about business, and deal with them in a professional manner. To accomplish this, we are going to write a business letter to a fictitious client. Task. First, set up a fictitious client and his or her economic situation. Then write a client letter using 3 to 5 concepts, theories, principles or vocabularies in chapter 2. Possible situations: - Buyer could not get financing, seller blames you - Seller blames you for house being on the market too long - Seller blames you for low offers - Buyer blames you for offer rejected - Friend/potential seller asks you when is a good time to sell - Friend/potential buyer asks you when is a good time to buy Length: 3/4 page minimum.
Answers
A client letter is a written message that a company or service provider sends to their customers. It is a formal method of communication used to share information, respond to inquiries, give updates, or provide suggestions for problems with clients.
[Your Name]
[Your Real Estate Agency]
[Address]
[City, State, ZIP Code]
[Date]
[Client's Name]
[Client's Address]
[City, State, ZIP Code]
Dear [Client's Name],
I hope you are doing well as I write this. I wanted to take this chance to talk to you about the recent difficulties you have had in the real estate market. As your devoted real estate agent, I am aware that understanding the market's complexities can occasionally feel overwhelming, but I want to reassure you that I am here to support you at every step of the way.
First, I want to address the circumstance in which the seller blamed our agency because the buyer was unable to obtain financing. It is crucial to understand that real estate transactions include a number of parties and outside variables that are out of our control. The buyer's financing issue in this instance can have developed as a result of different economic variables, like fluctuations in interest rates or tightened lending criteria. These fluctuations in the economic landscape can impact a buyer's ability to secure financing.
In addition, I want to address the seller's fear about the house staying on the market for a long time. The dynamics of supply and demand, the state of the economy, and buyer preferences all have an impact on the real estate market. It's crucial to recognize that not just our efforts as real estate agents affect how long a home stays on the market. Instead, it is a reflection of the property's particular qualities and the state of the market. You may be confident that I will use smart marketing tactics to increase visibility and draw in new customers.
When a seller is unsatisfied with the offers they have received, it is crucial to take the market and pricing methods into account. Real estate markets change, and elements like location, amenities, and recent sales data can have an impact on a property's value. We can offer precise pricing advice by using comparative market analysis and remaining current with industry developments. I'm here to talk with you about these factors and to answer any questions you might have.
Last but not least, I sincerely appreciate your confidence in me as a friend and prospective buyer or seller. Timing the real estate market can be difficult, and it takes a thorough knowledge of economic theory and regional market dynamics. When is the best time to buy or sell a house depends on a number of variables, including interest rates, market demand, and housing inventory levels. I am committed to remaining current with market information.
I'd want to emphasise my dedication to professionalism, openness, and giving you the best help possible while you navigate the real estate market in closing. I am aware that real estate transactions can be complicated, and it is my responsibility as your agent to help you, respond to your worries, and make sure your interests are adequately represented.
Please don't hesitate to get in touch with me if you have any more queries or need more details. I appreciate your confidence in my abilities.
Warm regards,
[Your Name]
[Your Real Estate Agency]
[Contact Information]
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According to Porter’s Five Forces Model, ____ is low when customers have more options.Group of answer choices A. supplier power B. buyer power C. new entrant power D. competitor power
Answers
B) Buyer power is the correct option. According to Porter’s Five Forces Model, buyer power is low when customers have more options. The power of buyers refers to the impact that customers have on the pricing and quality of products or services.
When there are fewer options available to customers, they have less bargaining power, which can allow sellers to charge higher prices and offer lower quality products. On the other hand, when there are many options available to customers, they have more bargaining power, which can put pressure on sellers to lower their prices and improve the quality of their products or services. Therefore, the correct answer is option B - buyer power.
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Who is the group of people MOST likely to purchase a company's products?
O A.marketing mix
О в.target market
O C.primary audience
O D. advertising audience
Answers
Option B is correct.A target/goal market is a crew of customers with shared demographics who have been recognized as the most likely buyers of a company's product or service.
Why is goal market important?Having the right target market helps you decide where to find practicable purchasers who are looking for what you have to offer. If you have a target market, you know where to concentrate your advertising and marketing efforts and what to provide that is compelling and properly received.
For example, a children's toy may additionally have boys a while 9–11 as the target market and the boys' mother and father as the target audience. It may additionally also be defined as the consumer segment most likely to be influenced through an advertising campaign. The target market is also awesome from the buyer persona.
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https://brainly.com/question/20974098#SPJ1Provide the name of a company that provides a product or service to consumers.
Answers
Answer:
Walmart Target Sam's Club Costco Marshall's
Check My Wor
Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is
favorable (F) or unfavorable (U).
Budgeted Income Amount $150.00
Actual Amount $120.00
Answers
Answer: The Answer Is
Dollar Variance $ 30
Percent varience 20%
F Or U which its U
Explanation: Hoped This Helped Thx For The Points!!
Explain how test-marketing can increase profits.
Answers
Answer:
Test marketing holds a lot of importance for the company. It allows
the company to test their product in a small region so as to get an
idea whether the product will work in a bigger market or not.
Through this, the company can measure the performance of the
product and can decide whether it should be released nationwide
for sale. Through this, the company can estimate the earnings that
can be earned through this product beforehand.
Explanation:
On the statement of cash flows, the investing activities section would include a.cash paid for retirement of bonds payable b.cash received from the issuance of capital stock c.cash paid for dividends d.cash received from the sale of investments
Answers
Pat and his friend rent an apartment together. Their total cost to move in included first month's rent, last month's rent and a security deposit of $600. If Pat paid a total of $1,050 to move in, how much is his share of the rent each month?.
Answers
Pat and his friend rent an apartment together. Their total cost to move in included the first month's rent, last month's rent, and a security deposit of $600. If Pat paid a total of $1,050 to move in,
Explanation: We know that he and his friend rent an apartment together. Their total cost to move in included the first month's rent, last month's rent, and a security deposit of $600.Pat paid a total of $1,050 to move in. We have to find Pat's share of the rent each month. We will begin by calculating the total amount of rent they paid to move in. It is calculated by subtracting the security deposit from the total amount paid to move in. So, Total rent paid = Total amount paid - Security deposit= $1,050 - $600= $450Now, we know that the total rent for the apartment is split between Pat and his friend. Therefore, we can divide the total rent by two to find each of their shares:$450 ÷ 2 = $225Therefore, Pat's share of the rent each month is $225.
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Why price will be low in a market economic system?
Other than competitors
Answers
Answer:
In a market economy Price is determined by demand and supply, for example when there is a low price for a good it means the demand is low. However in market economy price for abundant goods never gets high to a critical point due to the fact of consumer sovereignty environment which consumers are the rulers for suppliers.
a medical assistant is submitting an urgent referral request to an insurance company for authorization. how long will the authorization process take?
Answers
The authorization process for a medical referral request usually takes about 72 hours or 3 business days.
What is a medical referral request?A medical referral request is a formal process by which a healthcare provider, such as a medical assistant or physician, requests that a patient be referred to a specialist for further evaluation or treatment.
This can occur when a patient requires specialized care that cannot be provided by the primary care physician or when there is a complex medical condition that requires the expertise of a specialist.
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If the police want to enter a home to find evidence, what must they request?
A. An affidavit of probable cause
O B. A search warrant
O
C. A witness' testimony
о D. A motion for arraignment
SUBM
Answers
Answer:
B. A search warrant
Explanation:
hope it helps
henry suspects that some of his employees have been stealing from his company. he purchases a commercial crime insurance policy, which will cover any losses that actually occur during the policy period. under which coverage form of commercial crime insurance is henry's company insured?
Answers
Loss-Sustained form of commercial crime insurance henry's company insured.
The required details about commercial crime insurance is mentioned in below paragraph.
Insurance against business-related crimes, such as employee theft, forgery, robbery, and technological crime, protects against monetary damages. It is a kind of business insurance that offers protection for the company under the following types of policy: Employee dishonesty in Form A may be written as scheduled insurance or on a blanket insurance basis and covers money, securities, and other properties.
What are the commercial crime policy's exclusions?
The following things are not covered by commercial crime insurance: theft, misdemeanors, or other wrongdoing by you or your company partners. Additionally, it excludes any activities taken by personnel who colluded with one of your partners.
Thus, Henry company is insured under Loss-Sustained form.
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It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:__________
a. the rapid development of the Internet's capabilities.
b. extensive use of outsourcing within the borders of the United States.
c. the declining number of inventions and patents developed by U.S. citizens.
d. the simultaneous erosion of the U.S. work ethic and the U.S. education system.
Answers
Answer:
a. the rapid development of the Internet's capabilities.
Explanation:
It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and the rapid development of the Internet's capabilities.
Globalization can be defined as the process of developing technology, people, investments, informations, products in order to create international influences across cultures and national markets or borders. This makes it possible for various multinational enterprise or companies to break into different markets across world and compete effectively with other companies.
Also, the rapid development of the Internet's capabilities gives various companies the ability and privilege to technology and software applications to seamlessly meet the needs of customers over the web such as cloud computing services, Internet of things (IoT) etc.
7. Why do you think the graduation and retention rates for your selected colleges are displayed at the bottom of
the SAR? How might that information impact your college selection process?
Please I need help I speak little English
Answers
Answer:
It is on the bottom so you can compare the graduation and retention percentages all together and choose one together.
Explanation:
Because what if the college you want has low graduation rates, that would be bad for you, so by including it on the bottom, you calook at them all together and choose the best for you.
The graduation and retention rates are displayed at the bottom of the Students Aid Report in order to
The Students Aid Report refers to the document that gives a student the basic information that will be vital on knowing the eligibility for the Federal financial aid.The graduation rate is important as it helps the student to know the quality of the school. It is also vital as it helps the person in knowing the number of students who finish their degrees as at when due.With the graduation and retention rates for the colleges displayed at the bottom of the Students Aid Report, students can make right choices about the schools.In conclusion, with the above information, the student can then choose the best school that he believes will be good for him or her.
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A material handling system was purchased 3 years ago for $128,601. Two years ago it required substantial upgrading at a cost of $16,571. It once again is requiring an upgrading cost of $24,585. Alternately, a new system can be purchased today at a cost of $203,933, with a salvage value of $21,016. The existing machine could be sold today for $49,211. In an economic replacement analysis, what first cost should be assigned to the existing system
Answers
In an economic replacement analysis, first cost that should be assigned to the existing system is $120,546
In an economic replacement analysis, the first cost assigned to the existing material handling system should include the initial purchase cost, the cost of previous upgrades, and the cost of the required upgrading minus its current market value. Here's the calculation:
Initial purchase cost: $128,601
Upgrading cost 2 years ago: $16,571
Upcoming upgrading cost: $24,585
Current market value (selling price): $49,211
First cost assigned to the existing system = (Initial purchase cost + previous upgrading cost + upcoming upgrading cost) - current market value
First cost = ($128,601 + $16,571 + $24,585) - $49,211
First cost = $120,546
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In the case study "Autonomy & Informed Consent Case" , do you think the ends justify the means? In other words, does the goal of discharging the patient from an institutional setting into normal community living justify deceiving him? Explain your reasoning.
Answers
No, the ends do not justify the means in the case study "Autonomy & Informed Consent Case."
Deceiving the patient in order to achieve the goal of discharging them from an institutional setting into normal community living is ethically problematic. Autonomy and informed consent are fundamental principles in medical ethics, and they require that individuals have the right to make decisions about their own healthcare based on accurate and truthful information.
By deceiving the patient, their autonomy is undermined, and their ability to make informed decisions is compromised.
Deception erodes trust between the patient and healthcare professionals, as it violates the principle of beneficence, which emphasizes acting in the best interest of the patient.
It is essential to prioritize transparency and open communication to build a collaborative relationship with the patient, ensuring that their wishes and values are respected throughout the decision-making process.
Instead of resorting to deception, healthcare professionals should explore alternative strategies to support the patient's transition to community living.
This could involve providing comprehensive information, engaging in open dialogue, addressing concerns, and offering appropriate resources and support systems.
By prioritizing patient autonomy and respecting their right to make informed decisions, healthcare professionals can work towards achieving the desired outcome while maintaining ethical integrity.
In conclusion, the goal of discharging the patient into normal community living does not justify deceiving them. Upholding autonomy, informed consent, and open communication is essential in maintaining trust and ethical practices in healthcare settings.
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during an interview for the position of manager in health care, the candidate is asked about the important qualities of a successful manager. which responses would be appropriate? select all that apply. one, some, or all responses may be correct.
Answers
An important question during an interview for a management position in the healthcare sector is what characteristics make a good manager.
A good manager should take chances.A good manager must be able to deal with uncertainty.A successful manager should test out different solutions for a special circumstance.What skills might be essential while applying for a job in the healthcare industry?The best reactions include empathy and an understanding of how situations involving healthcare may affect patients, families, and other loved ones. The interviewer will also assess your ability to help patients make decisions.
What qualifies as the most important trait of a healthcare professional?compassion and love Above all, a skilled medical professional will have compassion for their patients and be available to comfort them as needed. A sympathetic ear, as well as understanding and respect for their preferences or beliefs, may be something that patients seek for when they periodically confront challenging or unpleasant conditions.
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Which of the following characteristics helps an entrepreneur succeed? A. Maintenance of the status quo. B. Tolerance of ambiguity and uncertainty.
Answers
The characteristics which helps entrepreneur to succeed is : (b) Tolerance of ambiguity and uncertainty.
The key characteristics which help an entrepreneur succeed is the ability to tolerate ambiguity and uncertainty. Entrepreneurship is inherently risky, and the path to success is often filled with challenges, setbacks, and unpredictable circumstances.
The Entrepreneurs must be comfortable operating in an environment where outcomes are uncertain and the future is unclear.
Having a high tolerance for ambiguity allows entrepreneurs to adapt and make decisions in uncertain situations. They can navigate through uncharted territory, identify opportunities, and embrace change. They are not discouraged by setbacks or failure but see them as learning opportunities and stepping stones towards success.
Therefore, the correct option is (b).
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The given question is incomplete, the complete question is
Which of the following characteristics helps an entrepreneur succeed?
(a) Maintenance of the status quotient.
(b) Tolerance of ambiguity and uncertainty.
The ending of an informative and positive business message should:________
Answers
Which are examples of copyrighted online materials? Check all that apply.
an article from an Internet magazine
lyrics for a song written in the 1800s
photos taken by a student on his blog
a video game that is free for anyone to copy
an illustration sold by an artist on her website
an excerpt from a novel published in 1913
Answers
Answer:
a and d
Explanation:
Answer:
A & E
Explanation:
edge test
How many days does the pay stub cover?
Answers
Answer:
Pay stubs are usually an extent of 30 days which is a month.
Question 1 of 10 If you make a plan to get a certain amount of a project done each day, what skill have you demonstrated? A. Time management B. Punctuality O C. Moral standards D. Integrity
Answers
Answer: A
Explanation: not sure, but i think its correct
Under what circumstance would a country have a comparative advantage in
the production of a certain good?
A. It has a lower opportunity cost for production of that good.
B. It has a more highly skilled work force.
C. It has well-developed industrial capacities.
D. It uses an assembly line to produce that good.
Ap3x
Answers
Answer: [A] It has a lower opportunity cost for production of that good.
Explanation: It has a lower opportunity cost for production of that good. Comparative advantage comes when a country gives up less than others to engage in a particular type of production.
Answer:
It has a lower opportunity cost for production of that good.
Explanation:
Hemingway Corporation is considering expanding its operations to boost its income, but before making a final decision, it has asked you to calculate the corporate tax consequences of its decision. Currently, Hemingway generates before-tax yearly income of $200,000 and has no debt outstanding. Expanding operations would allow Hemingway to increase before-tax yearly income to $350,000. Hemingway can use either cash reserves or debt to finance its expansion. If Hemingway uses debt, it will have yearly interest expense of $70,000
Create a spreadsheet to conduct a tax analysis for Hemingway Corporation and determine the following:
a. What is Hemingway’s current annual corporate tax liability?
b. What is Hemingway’s current average tax rate?
c. If Hemingway finances its expansion using cash reserves, what will be its new corporate tax liability and average tax rate?
d. If Hemingway finances its expansion using debt, what will be its new corporate tax liability and average tax rate?
e. What would you recommend that the firm do? Why? Principles of Managerial Finance 15th Ed Zutter Smart Chapter 2
Answers
a) Modern-day annual corporate tax legal responsibility = $200000 * 21% = $42000
b) Present day average tax price = 42000/200000 = 21%
c) Financing through coins reserves, new tax legal responsibility = 350000 * 21% = $73500
Modern-day average tax fee = 73500 / 350000 = 21%
d) Financing through debt, new tax liability = (350000-70000) * 21% = $58800
Cutting-edge common tax fee = 58800 / 280000 = 21%
e) Residual quantity on financing through cash reserves = 350000 – 73500 = 276500
Residual quantity on financing via debt = (350000-70000) – 58800 = 221200
So, Financing via coins reserves is recommended being higher residual coins after tax.(assumption: cash reserves kept idle)
Corporate tax refers to the tax levied on the profits earned by corporations or businesses. The tax is usually calculated as a percentage of a company's net income, after deducting allowable expenses and other tax deductions. Corporate tax is an important source of revenue for governments around the world and is used to fund various public services and infrastructure projects.
The rate of corporate tax varies from country to country and can be influenced by a range of factors such as the size of the economy, political climate, and international trade agreements. In some countries, tax rates are relatively low in order to attract foreign investment and encourage economic growth, while in others, higher rates are imposed to fund social welfare programs and address income inequality.
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YASHARI earns $27,000 per year, is single, and lives in Wyoming. She has $7000 in Direct Subsidized loans and another $19,000 in Direct Unsubsidized loans. She is trying to save up an emergency fund of at least 6 months’ take-home pay, so she’s torn about how much she should devote to her student loans and how much to the emergency fund every month.
- Which plan has the highest total amount paid? How long is the repayment period for this plan?
Answers
a) The plan with the highest total amount paid is the Direct Unsubsidized Loan of $19,000 because, in addition to the interest, the principal amount is higher than the Direct Subsidized Loan.
b) The repayment period for the Direct Unsubsidized Loan is 10 years after graduation if the Standard Repayment Plan is chosen.
What are unsubsidized and subsidized loans?Subsidized Loans are student loans subsidized by the Federal Government, especially with respect to the interest payment.
Subsidized Loans do not accrue interest during school at least half-time or during deferment periods. They are available for undergraduate and graduate students in financial need.
Unsubsidized Loans are federal student loans for both undergraduate and graduate students that are not based on financial need. They accumulate interest during school if the student does not elect to make monthly interest payments.
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