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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- The Home Depot is clearing out lawn mowers for $399.75 in an end-of-season sale that ends on September 30. Alternatively, you could wait until April 1 (assume February is in a non–leap year) and pay $419.95 on the same lawn mower. Assume your money can earn simple interest of 4.72% on a short-term investment.a. Which option should you choose?b. How much money will you have saved on September 30 by making that choice?Assume that a customer shops at a local grocery store spending an average of $350 a week, resulting in a retailer profit of $30 each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life span. Also, assume a 6 percent annual interest rate and no initial cost to acquire the customer. How much does the customer yield per year in profits for this retailer? (Round to the nearest dollar.)Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2019, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2019. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2019. Required: 1. Prepare the journal entries related to the sale of dates and the premium plan in 2019. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.
- Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below).Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation)How much is the Total Revenue to be recognized in 2021?To increase sales, DD Company inaugurated a promotional campaign on June 30, 2020. DD placed a couponfor a premium in each box of cake sold at P400. A coffee mug costing P60 is offered as premium to customers who sendin 5 coupons and a remittance of P20. The distribution cost per premium is P10. DD Company estimated that only80% of the coupons issued will be redeemed. For the six months ended December 31, 2020, the following data isavailable in terms of units:Boxes of cake sold 20,000Premiums purchased 3,000Coupons redeemed 10,000What is the estimated liability for premiums on December 31, 2020?a. P180,000 b. P150,000 c. P160,000 d. P60,000Goliath Banking Corporation (GBC) offers an "Income Investment Product" (IIP) for customers. The details for this product is as follows: Customers pay $984.31767830979 to buy an IIP. The IIP will pay out $37 at the end of each year for 12 years The IIP will pay out a further single payment of $1,000 after 12 years There are no further payments after this single payment at time 12 a. Calculate the return GBC promised to investors that buy this product, expressed an effective annual rate. Give your answer as a percentage to 4 decimal places.
- a investor purchased a 91 day, $100,000.00 t-bill on its issue date fir $99, 441.89, after holding it for 16 days, she sold the t bill for a yeild of 2.21% what is the original yeild of the t bill? what was the t bill sold for? the investor realized the rate of return was?You own a fruit garden. Choose one of the followings by showing clear calculation. Yearly inflationrate is 5%.– Option A: Invest 3 lac BDT to buy cultivation tools/factory. At end of every year you maygain high (8 lac BDT), medium (3 lac BDT) or low (1 lac BDT) with respective probability 0.3,0.4 and 0.3 for the next 5 years.– Option B: Lease the garden. The lessee pays 3.5 lac BDT at the beginning of each year forthe next 5 years. There is risk of plant mortality due to hyper production. Loss may be high:9 lac BDT (probability 0.1) or low: 1 lac BDT. This loss is realized at the end of 5th year only.Las Piñas Company includes one coupon in each package of cereal it sells. A towel is offered as a premium to customers who send in 10 cuopons. Data for the premium offer are: 2018 2019 Packages of cereal sold 500,000 800,000 # of towels purchased at 40 per towel 30,000 60,000 # of towels distributed as premiums 20,000 50,000 # of towels to be distributed as premium Next period 5,000 3,000 In its 2019 income statement, what amount of premium expense should be reported?
- Meadow Company wants to invest its net profits of $69,000 for 6 years in either a credit union or a local bank. The credit union provides interest of 4.75% compounded monthly, while the local bank provides interest of 5.25% compounded semi-annually. a. What would be the maturity value of the investment under the credit union option? Round to the nearest cent b. What would be the maturity value of the investment under the local bank option? Round to the nearest cent c. Which of the two options will yield the highest return? a. Credit Union b. Local BankAssume the 3-month rate on AAA-rated banker’s acceptance is currently trading at 4% p.a. (per annum). A exporter holding a letter of credit (LC) from a AAA-rated bank with a face value of $1,000,000 wishes to sell it in the market. What price can she expect to receive?Uptown Bank has granted a line of credit of $80,000 with an interest rate of 7.5 percent and a compensating balance requirement of 2.5 percent to Jones Hardware. The compensating balance requirement is based on the total amount borrowed. What is the effective annual interest rate if the firm needs $55,000 for one year to finance its inventory? Group of answer choices