What would be the maximum recommended limit for an individual's debt payments-to-income ratio, excluding the home mortgage? Question 24Select one: a. 10 % b. 20% c. 50 % d. 75% e. None of the above
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- What would be the maximum recommended limit for an individual's debt payments-to- income ratio, excluding the home mortgage? Question 24 Select one: a, 10% b. 20% c. 50% d. 75% e. None of the aboveAsapQUESTION 3 Which "rule" did you end up having to follow for the maximum allowable monthly mortgage payment? Why?
- 33 .The portion of the selling price paid by the customer at the time of purchase is called ________. a. Mortgage b. Amortization c. Down payment d. Installment loanItem 32 of 50 Which one of the following is a spontaneous source of financing? Select the correct response: Prepaid interest Notes Payable Trade credit Long-tern DebtWhat type of loan requires both principal and interest payments as you go by making equal payments each period? 13 Your choice: 13/15 Qs A: Amortized loan B: Interest-only loan C: Discount loan D: Compound loan
- A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $95,800 Initial interest rate = 4 percent Term = 30 years Points = 6 percent Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6 percent per year for the next five years: Required: a. Compute the payments at the beginning of each year (BOY). b. What is the loan balance at the end of the fifth year? c. What is the yield to the lender on such a mortgage? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the payments at the beginning of each year (BOY). Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Payments Year 0 Year 1 Year 3 Year 4 Year 5 Required A Required B71 A finance charge Is derined as the: A) O total loan amount. B) base loan amount. C) dollar amount the loan will cost you. D) dollar amount of any discount points charged.12- a loan that requires the borrower to maket he same payment every period until the maturity date is called a .? Please select one; a) simple loan b) discount loan c) faixed-payment loan d) same-payment loan e) none of the above
- Payment # Payment Interest Debt Payment Balance 1 1,167.34 540.54 626.80 259,873.20 2 1,167.34 539.24 628.10 259,245.10 3 1,167.34 With the exception of column one, all amounts are in dollars. Calculate the annual interest rate on this loan.A e N Y ll 36% Ô 14:24 Vo) LTE Question 4/10 Using the examples from the videos, which of these types of loans require that some principal be repaid prior to maturity (i.e., before the end of the loan period)? (check all that apply) Mortgage loan Bank loan Capital lease Zero-coupon bond Coupon bond NEXTmarch eacg Letter to the correct number answer to the left: 1. Interest 2. Monetary asset 3. Compound interest 4. Simple interest 5. Annuity 6. Present value of a single amount 7. Annuity due 8. Future value of a single amount 9. Ordinary annuity 10. Effective rate or yield 11. Nonmonetary asset 12. Time value of money 13. Monetary liability 1. ______ 2. ______ 3. ______ 4. ______ 5. ______ 6. ______ 7. ______ 8. ______ 9. ______ 10. ______ 11. ______ 12. ______ 13. ______ a. First cash flow occurs one period after agreement begins b. The rate at which money will actually grow during a year c. First cash flow occurs on the first day of the agreement d. The amount of money that a dollar will grow to e. Amount of money paid/received in excess of amount borrowed/lent f. Obligation to pay a sum of cash, the amount of which…
