Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's
A: When you take a loan then you have to make payments towards the principal amount as well as towards…
Q: What is a mortgage note?
A: Long-terms notes payable: Long-term notes payable represent a legal and written promise made by the…
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: When might a borrower want to have another party assume his liability under a mortgage loan?
A: There are basically two conditions when a borrower might want to have a third party:
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: A contractual agreement in which the borrower receives something of value now and agrees to pay the…
A: Solution: A contractual agreement in which the borrower receives something of value now and agrees…
Q: What is a mortgage payable?
A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…
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: What’s the difference between an ordinary annuity and an annuity due?
A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…
Q: If you were taking out a loan and the interest rate was the same either way, would you want it to be…
A: Simple interest is the interest payable on principal or borrowed amount only. Compound interest is…
Q: What is a mini-perm or bullet loan? When and why is this type of loan used?
A: Answer: Project development may be characterized as the process of designing, planning,…
Q: What is the impact of annuity dues in consideration to business matter?
A: Annuity Due: It is the fixed amount of payment that is due immediately at the beginning of each…
Q: When is it recommended to compute the effective interest rate per payment period?
A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…
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: What is an annuity? How is it defined? What is the difference between an ordinary annuity and an…
A: Annuity is defined as payments that are made at intervals. Monthly payments of insurance, amount…
Q: Can borrowers pay off part, or all, of loans any time that they desire?
A: No, borrowers can not make payment in part, or full loan amount at whatever time they desire to pay.…
Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?
A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…
Q: Which type of loan is suitable for buying supplies? O a. Single term O b. Long term O C. Medium-term…
A: Loan is defined as the amount of money borrowed from someone, usually a financial institution. Types…
Q: What is a buydown loan? What parties are usually involved in this kind of loan?
A: INTRODUCTION There are various mortgage financing techniques which helps to reduce cost for the…
Q: What is a secured loan?
A: Secured Loan : it is a type of loan in which lender lend money on the basis of collateral or…
Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…
A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…
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: loan, what amount of money will be required to pay the down payment, the origination fee and the…
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
Q: payments. What is her effective rate of interest?
A:
Q: ents plus the interest on the remaining loan. What was the amount of the loan? What was the amount…
A: in this problem payment is made by four equal payment plus interest on remaining amount.
Q: What is the formula used in annuity due if your looking for the compounded interest rate with given…
A: Present Value of an Annuity is used when a business wants to know how much amount it should pay for…
Q: What are a few things to consider before you cosign a loan?
A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…
Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…
A:
Q: What is interest earned by a lender but not yet collected? As well as what is interest earned by a…
A: Lender is the person who lends or provides money to other person in return of some interest as well…
Q: What are the benefits to the back for amortizing a loan
A: In finance amortized loan is one in which fixed monthly payments are made by the borrower to the…
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: Describe the concept of non interest bearing on loan.
A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…
Q: What are the pros and cons of loaning?
A: Loaning is a process of lending money. An interest rate is charged by the lenders on the money lent…
Q: What are mortgage discount points? When does it make sense to pay points on a loan? How can a…
A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…
Q: Determine the effective interest rate to the borrower.
A: The effective interest rate to the borrower would be calculated using the nominal rate. The…
Q: How does getting a secured loan using accounts receivableas collateral differ from factoring?
A: In factoring, the corporation sells their receivable balance to the factoring corporation at a…
Q: What is the Cumulative interest payment?
A: Cumulative interest payment is the sum of all previous interest payments that are made for an…
- When would there be a discount on a loan? How about a premium?
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- What is the indifference point under the net present value? When would there be a discount on a loan? How about a premium? Explain the purpose of the net present value.What are mortgage discount points? When does it make sense to pay points on a loan? How can a borrower make a decision?What will be the Effect of the After-Tax Interest Cost on Loan Decisions?