81

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 ...


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 ...


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

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

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 ...


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 ...


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 ...


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

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-...


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

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

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

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

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

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

The term commonly used for "holding period return" is "cumulative return". The issue is that you're comparing two different formulas for return and mistaking them for interchangeable values. Yield to maturity (YTM) is annualized (it's also forward looking). Cumulative return is a historical measure of how much money an investment has earned for an ...


1

YTM is typically presented as an annual number. To your second point, returns don't typically include separate inflation adjustments or discounts. Those factors would already be considered in the yield the market is willing to pay.


1

That is not how VAT usually works. To my knowledge (IANAL, but have coded quite a few systems to handle VAT) VAT is always to be calculated on the total sum of an invoice (if you have different rates, you have to calculate one sum for every rate) VAT is always rounded up. Example: This is simple: So let´s say you have an item that costs just 7 cent´s. ...


1

If you’re discounting the total price, then you’re discounting the tax by the same amount. The tax is calculated on what you actually charge, not on the headline price before discounts are applied. Just apply the discount to each line item and then calculate the tax as normal on the discounted price. Or if you don’t want to calculate the discount for each ...


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 ...


1

Negative Yields on Bonds is opposite of Getting profit on your investment. This is some kind of new practice from world wide financial institute. the interest rate is -0.05% for ten years. So a $100,000 bond under those terms would be "discounted" to $100,501, give or take. No, actually what you are going to get out from this investment is after 10 ...


1

Most companies that have employee discounts have policies to prevent exactly this. Sometimes they will say that you can only use the company discount for products that you intend to use yourself, they'll specifically ban buying things for friends. Of course enforcing such a rule can be difficult, but a car is a big enough purchase that if they have such a ...


1

I am no expert on the situation nor do I pretend to act like one, but, as a business owner, allow me to give you my personal opinion. Option 3 is closest to what you want. Why? Well: You have a $100 AP. You put in "Other Income" with a note like "Vendor discount from XYZ of 100%. Then you put in the AP as Played in full. This way, you have both the ...


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