If a book author receives royalty payments from a publisher, the payments will be taxable as which of the following types of income?
A) Earned income.
B) The payments are not taxable.
C) Passive income.
D) Portfolio income.
Answer: A) Earned income.
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PMI is the acronym for Private Mortgage Insurance often used by borrowers whose LTV (loan-to-value) ratio is less than 20 percent. Lenders must cease charging PMI when the LTV reaches
A) 22 percent. B) 27 percent. C) 29 percent. D) 35 percent.
A dry cleaner has a single drive-thru window for customers. The arrival rate of cars follows a Poisson distribution, while the service time follows an exponential distribution
The average arrival rate is 16 per hour and the average service time is three minutes. (a) What is the average number of cars in the line? (b) What is the average time spent waiting to get to the service window? (c) What percentage of time is the dry cleaner's drive-thru window idle? (d) What is the probability there are more than 2 cars at the drive-thru window?