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: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: Default Pay Yourself First Interest occurs when a borrower is unable to meet the obligation of debt…

A: In this case we are given different terms related to finance in general and to use of borrowed money…

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: Interest payment is: A. The effective interest rate times the amount of the debt outstanding during…

A: Debt :— It is the amount borrowed for specific time period. Example:- Bonds payable, Notes payable,…

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: 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: the final or future value of an investment the compounding periods of a loan or investment the value…

A: The final or future value of an investment is called amount. The compounding periods of a loan or…

Q: Explain when EXACTLY you would prefer the previous balance method to the average daily balance…

A: Previous balance sheet method is a way wherein amount of interest is charged on the previous month…

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: Describe the Repayment Plans Offered by the Lender?

A: Answer: A repayment plan is a method of repaying a debt over an extended period of time, usually by…

Q: What is the difference between a credit sale (with a higher price as compared to the cash sale) and…

A: The amount of Sales made in credit has to be collected after certain period of time. In case of cash…

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: How aware are you of the fees associated with your current loans, and how might a better…

A: Understanding the fees associated with current loans can significantly influence borrowing…

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: 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 can we determine a Loan's Balance, Principal, and Interest?

A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…

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: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

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: Discuss the key components of a good written loan policy

A: A written loan policy outlines the process that has been established in the course of making a loan.…

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: Describe a short-term financing option and discuss the advantages and disadvantages.  Is there a…

A: Short term financing: Any loan that is obtained for a short period of time is Short Term financing.…

Q: Benefits of a savings account for borrowers ?

A: The saving account refers to the type of account in a bank that provides the facility to deposit the…

Q: How the interest rate affects the release of credit card

A: Given,

Q: The discount allowed to a debtor for early payment is

A: Debtors :- Debtors are the person to whom goods and services are sold on credit.

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: Explain Effective Cost of Two or More Loans?

A: When there is the existence of a situation, where the borrower takes an option to finance the…

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: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

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 is the difference between a nominal account and a real account?

A: Nominal Account: These are the accounts that pertain to Incomes (or Revenues) and Expenses. Thus,…

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: Thinking about various payment terms for Accounts Payable, do you feel it is always valuable for a…

A: The prime rate means the lowest borrowing rate of money.