Sources of consumer credit. Introduction: Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Question

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Answer 1

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Students have asked these similar questions

$5,000 received each year for five years on the first day of each year if your investments pay 6 percent compounded annually. $5,000 received each quarter for five years on the first day of each quarter if your investments pay 6 percent compounded quarterly. Can you show me either by hand or using a financial calculator please.

Can you solve these questions on a financial calculator: $5,000 received each year for five years on the last day of each year if your investments pay 6 percent compounded annually. $5,000 received each quarter for five years on the last day of each quarter if your investments pay 6 percent compounded quarterly.

Now suppose Elijah offers a discount on subsequent rooms for each house, such that he charges $40 for his frist room, $35 for his second, and $25 for each room thereafter. Assume 30% of his clients have only one room cleaned, 25% have two rooms cleaned, 30% have three rooms cleaned, and the remaining 15% have four rooms cleaned. How many houses will he have to clean before breaking even? If taxes are 25% of profits, how many rooms will he have to clean before making $15,000 profit? Answer the question by making a CVP worksheet similar to the depreciation sheets. Make sure it works well, uses cell references and functions/formulas when appropriate, and looks nice.

Answer 2

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Answer 3

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Answer 4

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

Answer 6

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

Answer 7

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Answer 8

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.