How long does it take you to eliminate the debt?

Q: how long will it take for the money to

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: In your own opinion, what would be the out come or consequences if a debtor failed to settle thier…

A: A debt default occurs when the borrower is unable to pay the money back to the lender at the time…

Q: Discuss how banks benefit when interest rates decrease?

A: Low-interest rate environment- It refers to the state of the economy when the risk-free rate of…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: What is the difference between a line of credit and a short-term loan?

A: Short term loan:   A loan is borrowed money that is to be paid back along with the interest. A…

Q: QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with…

A: The given question has more than 3 subparts so as per the policy of the company only the first 3…

Q: (Remember to find the total amount paid over the life of the loan and subtract from house cost) What…

A: Loan Amortization: It is the process of paying the loan amount by making periodic payments by the…

Q: What is the Importance of Accrued Interest and Loan Payments?

A: When the bonds are being purchased and sold at that time accrued interest is considered to be…

Q: As a loan is paid off, the   monthly payment increases debt and interest portions do not change each…

A: Interest expenses on loan is calculated on the closing balance of the loan  account on a particular…

Q: What is credit enhancement, and what effect does it have on debt costs?

A: Credit enhancement represents the strategy that improves the business' credit risk profile. It helps…

Q: Which of the following has the highest relative likelihood of being defaulted in paying the…

A: The interest expense and earnings before interest and income taxes details for each of the company…

Q: What factors must be considered when deciding whether to refinance a loan after interest rates have…

A: Individuals always consider refinancing the loan when interest rate falls because they think they…

Q: What is the process of calculating the remaining balance of different types of loans?

A: The remaining balance of a credit plan equation can be part of two sections, the future estimation…

Q: The actual amount that is given to the borrower is called the after the loan has been discounted.

A: Basically a discounted loan has three components Discount Proceeds Maturity Value

Q: What are the instances when the debtor loses the benefit of the period? Explain by giving examples…

A: When a period for the performance or fulfillment of an obligation is agreed upon, it is believed to…

Q: difference between debt and quity

A: A company’s capital consists of two forms, one is equity and the other is debt. When a company is…

Q: Why is a mortgage a good debt?

A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…

Q: What is grace period? O The amount of time you have before your payment is due. O The amount of time…

A: Ans.  None of the above

Q: What are some of the ways to estimate bad debts?

A: There are 2 basic methods namely 1. Percentage of sales method 2. Percentage of receivable method…

Q: What is the real interest rate on your savings account?

A: Real Interest Rate = Nominal Interest Rate − Inflation Rate

Q: How does the present value of a future payment change as the time to receipt islengthened? As the…

A: Present Value of a future payment is calculated  based on the length of time and the interest rate…

Q: Calculate rebate on bills discounted?

A: When a customer who has bills recievable is facing liquidity issue he can approach bank inroder to…

Q: Explain how an installment loan differs from revolving credit in terms of risk and the nature of the…

A: Installment credit is a type of loan in which the borrower receives a defined, or limited, sum of…

Q: Why does the use of debt lower ROA?

A: Introduction: Debt can be characterised as an amount or sum owned by a person to another for…

Q: How important is the ability to borrow money from an individual and what is the primary risk of…

A: Borrowing money is the act of obtaining money from the lender in order to fulfill a financial goal…

Q: What do short-term notes payable represent?

A: Short-term notes payable: short-term notes payable is a written promise made by the business to pay…

Q: Explain Incremental Borrowing Cost versus a Second Mortgage?

A: The lenders offer different repayment terms of the same loan to the different borrowers. The term of…

Q: If a person charges interest on a loan transaction equivalent to the inflation rate than will it be…

A: Time value of the money is the value of the money which a person must use in order to know how much…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: What is the interest rate the borrower will pay after the first rate adjustment?

A: Data given: Start rate = 3.50% Maximum cap for the first year=3% MTA index at the end of the first…

Q: how did you get the yield on debt

A: The yield on Debt: It represents the rate of return expected by the debtholder if the debt…

Q: What are bad debts?

A: Debts that a company or person is unable to be likely to recover are known as doubtful debts.…

Q: How does a short term loan works?

A: Definition : A short term loan is a variety of loan that's obtained to support a short lived…

Q: Then what was the difference between a creditor and a debtor?

A: In normal course of business goods are sold and Purchased in cash and on account. Every business has…

Q: What may a person lose in addition to the good if he fails to keep up the payment on a personal…

A: Personal loan : The personal loan can be understood as the sum of funds for a number of uses that…

Q: What are out of period debts? Explain?

A: Out of Period debts: It is also known as time barred debts.

Q: Why is saving money important short term? Why is it important in the long term ?

A:

Q: What is proovision for bad debts

A: Bad debt means the amount due from debtor but it become bad i.e. it is not possible to recover the…