Number of Payments Payments Made 36 23 Payments Remaining Sum-of-the- Digits Payments Remaining Sum-of-the- Digits Number of Payments Rebate Fraction

Q: Discusses price changes for interest rates on loans explain why this change may be taking place.

A: Interest rate are the percentage of the loan amount which the borrower needs to pay to the lender in…

Q: Briefly describe something about paying off loans

A: There are a few things to consider when paying off loans. First, you need to consider the interest…

Q: the lending operation, how many types of loans security?

A: In lending operations banks for their safety of loans ask  for some collateral.You have to provide…

Q: how did you get the numbers for installment sales?

A: Instalment Method: The installment method is typically employed when a customer is permitted to…

Q: Explain in general terms how the portions of loan payments going to principal and interest change…

A: Installment loans gradually pay down the loan principal while the payments remain the same .…

Q: How do banks calculate the monthly payment on a loan?

A: Present value annuity formula is used to calculate the monthly payment on a loan. Here, The loan…

Q: ate one (1) problem situation concerning a loan amortization problem. Make a brief description of…

A: We need to create a loan amortization table for any practical situation.

Q: Give and explain the factors that affect the interest rate on the loan

A: Following are the factors that affect interest rate on the loan:  1. Supply and Demand Interest…

Q: nterest is a method of calculating the interest to be paid on a loan by combining the principal…

A: Add on interest refers to the method which is used when the person acquire the loan or the mortgage…

Q: difference between l

A: Loan Review: A vital component of Effective Portfolio Risk Management. Effective loan portfolio…

Q: HOW TO Find the finance charge of an installment loan.

A: Finance Charge: Generally speaking, financial charges are any fees or charges associated with…

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: For a creditor; how is a loan impairment recorded?

A: Creditors:   They are the outside entities to whom the business owes money for any product or a…

Q: .The portion of the selling price paid by the customer at the time of purchase is called ________.…

A: Customers have to pay some amount to purchase on loan.

Q: From the standpoint of a borrower, is long-term or short-term credit riskier? Explain

A: credit risk is define as the chances of a loss due to  borrower's failure to repay obligation in…

Q: How did you get the loan repayment and bank loan?

A: Bank Loan is a non-current liability of the business and it is borrowed to finance long term plans…

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: Credit scoring is a process used to   Multiple Choice   determine what interest rate to charge a…

A: Credit score : it is a number between 300 - 850 which depicts consumers creditworthiness.

Q: Explain why a loan officer always looks at a credit report before making a loan. What should you do…

A: The credit report is a way of assessing the credit history of the person seeking loan. By looking at…

Q: What is a credit card’s grace period? A) it is the amount of time after a purchase and before it…

A: Introduction: The time between the end of the billing cycle and the payment due date is called the…

Q: There is a formula that will find the APR, i, of a single payment loan but not for a series of…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: Identify two important pieces of information that should be included in the borrower's credit…

A: Credit is a two-party transaction in which one (the creditor or lender) exchanges money,…

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: Discuss the steps of loan structuring.

A: Loan structuring is defined as the components, which used to make the loan, like term loan, rate of…

Q: What is the procedure for recording a short-term bank loan?

A: Business requires money and sometimes there exists a situation in which company or business does not…

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: Define secured loans.

A: Secured Loans: Secured loans are those for which the borrower puts up some asset as security or…

Q: Explain CECL (“Current Expected Credit Loss”) model.

A:

Q: Explain mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: Fill in the blank. A loan on which you pay a fixed amount of money for a set number of payments is…

A: There are various ways of providing loan such as  Fixed instalment loan where it must be repaid with…

Q: On what factors do the interest rate and repayment terms for term loans based?

A: Loan refers to the lending of money  by one ore more individuals  or organizations . The recipient…

Q: When you borrow money, you typically have to pay an interest rate. What does interest represent? a)…

A: Step 1:When you borrow money, you typically have to pay an interest rate. Interest represents:a) The…

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: This payment type is essentially a short term loan up to a predetermined amount. O Debit Card O…

A: The payment type is essentially a short-term loan up to a predetermined amount.Debit CardCredit…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

Q: A loan secured with a financial asset (eg. Accounts receivables) is a called a ___________ loan.…

A: Financial asset is a liquid asset which can be easily sold in the market. A financial asset can be…

Q: Write the different types of loans available?

A: Types of loans available as follows: Debt Consolidation Loans: A consolidation credit is intended to…

Q: What are the types of debts that must be repaid quickly called?

A: Generally having to pay money to another person or item The majority of debts, including credit card…

Q: Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound…

A: COMPOUND INTEREST IS CALCULATED ON THE PRINCIPAL AMOUNT AND ALSO ON THE ACCUMULATED INTEREST OF…