82

The simple answer is that their underwriting models show that customers with higher credit scores are less expensive to insure. The general argument is that credit score is a reasonable proxy for responsibility, not wealth. Someone that religiously pays their bills on time is likely to be quick to address small maintenance issues rather than letting them ...


14

This was discussed in an article in Consumer Reports in June 2017. The explanation given was that people with higher credit scores have the means and inclination to pay for issues out-of-pocket, rather than by making a claim. But Alldredge says insurance companies wouldn’t use the scores if they weren’t useful in assessing risk. “Maybe the person ...


9

If you know you'll be using the hosting for the full two years, then go for it! The only reason not to take advantage of such discounts is if you have reason to believe you won't use the service for that long, or that you may wish to change service providers during that time frame. If this is a company you're never worked with, you may wish to pay month to ...


8

I presume you mean your monthly food budget is $100, not $500. The key word is budget, not monthly. If you expect to use the whole $500 of credits eventually, and you have enough cash to make that purchase while leaving yourself sufficient reserves for your other needs of course you should take advantage of the 20% discount. If this would crimp your ...


6

The one year is the better deal if they repeat the offer. It's close to a 20% ROI. Really? How so? Glad you asked. Consider, for 12 payments the average amount of time they have your money is 6 months. Better still, the average time you DON'T have it is that 6 months, as you'd start by having the $full, less each month to $0 at the end. So surely the 10% is ...


5

In the event that payment is not made by the due date on the invoice then the transaction is essentially null and void and you can sell the work to another client. For your particular situation I would strongly suggest that you implement a sales contract and agreement of original transfer of work of art for any and all future sales of your original works of ...


5

In almost any jurisdiction, the restaurant will pay tax on the amount after the discount. Discounting is just a selective way to reduce prices for particular clients and thus achieve some degree of price discrimination. It's no different in principle to cutting prices for everyone or having a sale or similar. It would be very strange for a tax jurisdiction ...


4

The IRR is the Discount Rate r* that makes Net Present Value NPV(r*)==0. What this boils down to is two ways of making the same kind of profitability calculation. You can choose a project with NPV(10%)>0, or you can choose based on IRR>10%, and the idea is you get to the same set of projects. That's if everything is well behaved mathematically. But that's ...


4

In the UK, most insurers will honour proof of NCB up to two years old. For example, Swiftcover say: Your proof of No Claims must be ... less than 24 months old


4

As with everything else, it's a question of trade-offs. Pros For Buying In Bulk Less frequent trips are needed to purchase more items. You are less likely to run out of the item at an inconvenient time. There is a longer lead-time before you need to restock. Cons For Buying In Bulk Inventory cost. You need to purchase more shelving/cupboards to stock the ...


4

I owned a restaurant for over 5 years. Sales tax was only collected on POST discount price, though every state that collects sales tax may have different laws regarding collection. For example, when a customer used a gift certificate, that did NOT reduce the amount that tax was collected on. Why? Because the restaurant at some point or another collected ...


4

must the renter report the resulting $6000 per year discount as income to the IRS? I would argue yes. You are essentially exchanging services for money - some chores in exchange for $500. Therefore, if we are dotting all our I's and crossing all our T's, the landlord should furnish you a 1099-Misc for your work. If there is some question as to what ...


3

AAA rarely provides discounts. They are kind of like a travel agent, and guess what? You can't get discounts from travel agents either. If AAA does have a discount, it will be on a very specific, simple ticket, not involving add-ons like park hopper. Here is a guide to buying Disney tickets: http://www.mousesavers.com/walt-disney-world-vacation-discounts-...


3

Even though the article doesn't actually use the word "discount", I think the corresponding word you are looking for is "premium". The words are used quite frequently even outside of the context of negative rates. In general, bonds are issued with coupons close to the prevailing level of interest rates, i.e. their price is close to par (100 dollar price). ...


3

A quick Excel calculation tells me that, if you are earning a guaranteed post-tax return of 12% in a liquid investment, then it doesn't matter which one you pick. According to the following Excel formula: =PV(0.12/12,24,-100) You would be able to invest ₹2,124 now at 12% interest, and you could withdraw ₹100 every month for 24 months. Which means that ...


3

The part I had a problem wrapping my brain around was figuring in opportunity costs. If you have outside places to put money to earn higher rates of return (like paying down debt), electing for no discount could be optimal. I think the key is to recognize the payment structure has diminishing returns: the one year lump sum earns 10 percent, and the second ...


3

Call Amazon customer service and ask for a price reduction. As long as you are within the return period for your device, they will usually honor the request. It would be simple enough for you to return the device and go to the competition. As a relevant personal anecdote, I bought my girlfriend a Kindle Fire last year and the price dropped a week later. ...


3

To Rich Seller's point, we live 1/2 gallon of gas and 30 minute round trip from the supermarket. For the items that are non-perishable, such as bathroom or facial tissue, paper towels, shampoo,soap, toothpaste, etc, there's value in never running out of it. (@JohnFx - your point is well taken. When my daughter was a toddler, I found her covered in band-...


3

While the answer by Justin Cave sounds right, and shows the good side of the situation, there is another bad side which I would like to highlight. I have no way to know which side Gore Mutual is on, and I do not want to cast Doubt on them; I am merely listing some alternative Possibilities based on experiences in India. Now, Gore Mutual is going to get $X ...


2

I ran an excel spreadsheet assuming that you would deposit the entire amount, withdraw each monthly payment, and interest would be compounded monthly. For the first deal, you would need to get a rate of 19% to break even. For the second deal, you would need 13%. to break even. It's highly unlikely that you can find such an investment, So I'd take either ...


2

Not so much a scam, if you fill the required paperwork and actually take time to mail it in assuming it's done correctly; you will get your money. That being said, having a mail-in rebate program is usually a win-win for the seller. While they may have to pay a small fee to a third party who handles the rebate almost always this influences a potential buyer ...


2

Most of this advice applies to the UK, where I work in motor insurance pricing for a large personal lines insurer, but a lot of it is more general. A loyal customer is usually an overpaying customer. The guiding priciple most financial services companies go by is that there's no point rewarding loyalty except to create it where none exists, i.e. by giving ...


2

Check the employee-friends-and-family sales contract, which your friend should be able to get quite easily. There is almost always a minimum holding period before resale clause, specifically to prevent this kind of scenario. Without that clause, the dealers tend to riot... Also, remember that a car loses a huge percentage of its value the moment it leaves ...


2

Take the offer only if there's no catch: You're sure you'll spend the credits. You shouldn't have to buy something you wouldn't otherwise buy, or from an overpriced shop, or eat in a restaurant that serves worse food. You should have plenty of savings and won't miss the money that's blocked for the duration it takes to spend it. If there's a catch, like ...


2

Even if you avoid the issue of the auto dealer wanting to limit the abuse of their policy, you have to realize that the discount they give is 25% off of some stated price. It might be 25% off the sticker. They don't want to lose money, the 25% represents the haggling they avoid by selling to the employee. This means the discount might not be as large as you ...


2

I live in Minnesota. I also heard about AAA discount Disney World tickets; so I called my local office to inquire. Their prices were more expensive than just buying through Disney's site directly. This was just for a basic, one park per day, three day ticket. Go to mousesavers; then from there go to UndercoverTourist.


2

Do bidder bid with price or with discount rate? T-bills are typically quoted by their equivalent interest rate, or yield, so the quote would be 1.495%. This makes quotes comparable regardless of their tenor, since a 1-day t-bill valued at $99 has a much higher annualized yield than a 180-day t-bill at the same dollar price. why am I not getting the same ...


2

It is not taxable, because the transaction is not a barter transaction. The discount is not offered in exchange for a specific thing like an amount of work. It is offered to someone with a specific status, i.e. an employee. That is no different from offering a discount to a senior, or a veteran. Key to this is that they person receiving the discount does ...


1

Your calculation of the 10,000 * (1+0.06)^5 = 13,382.26 does not take into account the time value of money. You wouldn't get that entire profit of $3328.26 today, you get it five years from now. Meaning you need to discount it by (1.06)^5 in the denominator to get the NPV. [10,000 * (1.06)^5] / (1.06)^5 = exactly 10,000. -10,000 in year 1 + 10,000 in year 5 ...


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