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: Describe the repayment process for both a term loan and ab
A: Term loan and bonds are two different types of raising money.
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: 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: The payment for the use of borrowed money is called: loan maturity value interest principal
A: Borrowed money is the loan taken, which is to be repaid within the terms of the loan contract.
Q: __ is the interest earned at the end of the alloted time between the lender and the borrower.
A: Step 1 Interest is calculated as a percentage of the loan amount (or deposit) and is paid to the…
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: The is the length of the loan. APR (your response) term interest rate
A: length of a loan refers to the duration of the period, where the person is required to repay the…
Q: Interest expense
A: Interest expense paid on a loan which has prescribed is deductible from gross income of the payor…
Q: How much is the premium or discount of the new note payable
A: Premium or discount on the note payable arises due to the fact of that the amount which has been…
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: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: (Remember to find the total amount paid over the life of the loan and subtract from house cost) What…
A: Loan Amortization: It is the process of paying the loan amount by making periodic payments by the…
Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…
A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…
Q: Determine whether the following statement is true or false, and explain why. A loan is amortized if…
A: Borrowing by an individual or a corporation is the method through which the individual and the…
Q: What is defined as the interest on a load or principal that is based only on the original amount of…
A: The right answer is option (D) simple interest
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 factors must be considered when deciding whether to refinance a loan after interest rates have…
A: Individuals always consider refinancing the loan when interest rate falls because they think they…
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: 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: When would there be a discount on a loan? How about a premium?
A: The loan is purchased to finance the purchase of equipment, education purposes, the purchase of…
Q: What is the total interest paid over the life of the mortgage?
A: Answer to Question: Total Interest paid over the life of the mortgage=89,984.94 (Refer Workings)…
Q: An annuity is a kind of financial contract. What's the difference between this and a one-time…
A: An annuity is a fixed series of payments over the period and contains a number of cashflows.
Q: What is the period of deferment of a deferred annuity?
A: Solution- Deferred Annuity- A deferred regular payment is a contract with an…
Q: How commercial loans and mortgages are structured in terms ofinterest and principal payments.
A: Commercial loan, as well as a mortgage, are being structured in terms of interest and principal…
Q: What is the Relationship of Note to Mortgage?
A: Relationship of Note to mortgage Document of Mortgage acts as a promissory note. A promissory note…
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: Which of the following is true when the mortgage loan is an amortizing loan? a. At the beginning of…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
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: 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: 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 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 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: 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: 1. In the most loan amortization schedules, amortization of discount or premium of the loan…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: In the amortization of loans, interest must be paid at the beginning of each period calculated on…
A: Loans are amortized or paid off by way of scheduled and periodic regular payments. The payment…
Q: The original amount of money in a loan transaction is known as what?
A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…
Q: The of the present values of all the payments required to pay off a loan is equal to the original…
A: The original value of an amount at any given time is known as equivalent value. The equivalent…
Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…
A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…
Q: For the second mortgage application, calculate the percentage of appraised value and the potential…
A: Given : Appraised value = $127,500 Lender's Percentage = 70% Balance of first mortgage = $53,200
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Solved in 2 steps
- 1. True or false. Rate of return is the interest earned on the unpaid balance of an amportized loanQ A banker requires financial information to assess whether: I. The borrower can repay the loan amount II. The borrower can pay the interest III. The borrower can repay only the principal IV. The borrower can pay the instalments early than the stipulated time I and IV II and III I and II II and IVwhat is the gournal jeneral entry for: 1. repaid loan. 2. paid interest.
- 8- A contractual agreement in which the borrower receives something of value now and agrees to pay the lender in the future with an interest is called as. a. Credit b. Insurance c. Money d. TimeQuestion 59 factoring, the lender buys accounts receivable outright from borrower at a discount and assumes burden of collecting receivables. True or FalseAnswer the following questions correctly. a. The interest is computed on the principal and on the accumulated past interest . a. Compound Interestb. Interestc. Simple interestd. rate b. Which of the following are NOT true? I. Principal is the money given or paid invested in the origin date II. Origin date is a date on which money is paid by the borrower. III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.
- in.......................all of the interest is paid at end of the term a)Amortized loan b)interest-only loan c)ordinary loan d)discount loanDescribe the concept of non interest bearing on loan.Note: 1 discount point = 1% of loan amount a)Calculate the effective borrowing cost to the borrower. b) Compute Lender's Yield. c) Based on the effective borrowing cost, which loan would you choose? Explain your answer using your calculations from a) and b).
- 1. Explain how an installment loan differs from revolving credit in terms of risk and the nature of the return to the lender.3. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of paymentQuestion 1 Rules of the internal revenue service concerning the deductibility of points on a mortgage DO NOT include, A for a buyer to deduct points the seller paid to reduce his cost basis B Points paid to refinance the property to be fully deductible in the year paid C points paid by the seller to be considered a selling expense D points to be deductible as interest to be paid directly to a lender question 2 which of the folloeing would actually be included in an annual property operating statement of a potential real estate investment A economic base analysis B managment fee C comparative market analysis D investor`s earning potential
