Evaluating alternative notesA borrower has two alternatives for a loan: (1) issue a $360,000, 60-day,5% note or (2) issue a $360,000, 60-day note that the creditor discounts at5%.a. Calculate the amount of the interest expense for each situation.b. Determine the proceeds received by the borrower in eachsituation.c. Which alternative is more favorable to the borrower? Explain.

How do you calculate the rate on an Adjustable Rate Mortgage? Survey the cost of funds an local banks. O Use the amortization formula. With a financial calculator. O Index + Margin

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#45 A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called: a bond. a compensating balance. a letter of credit. an assignment. factoring.

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $26,500,000 of five-year, 12% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $25,547,585. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1. 2. 3. 300 000 000 000 000 b. Determine the amount of the bond interest expense for the first year.

Rank the following car loan descriptions from highest payment ot lowest payment. The loan amount is the same for all. 5-year loan 3% interest rate 5-year loan 4% interest rate 6-year loan 3% interest rate 6-year loan 4% interest rate

Indicate whether the statement is true or false.       1. Given 10 and 30 year loans with the same interest rate, the 30 year loan results in a lower periodic payment. a. True b. False

Loan Servicing Companies.. O Collects monthly payments, remits to investor O Purchase loans on the secondary market O Decide on credit criteria for new loans O Underwrite home loans

When purchasing a vehicle or obtaining a mortgage, you are most likely to get what kind of loan: O pure discount O interest only amortized loan with fixed payment amortized loan with fixed principal payment

Next Question Find the total installment cost and the finance charge for an installment loan with these co Amount Financed Down Payment Cash Price Number of Payments Amount of Payment Total Installment Cost Finance Charge $120 none $120 15 $10 $ $ The total installment cost is $ The finance charge is $