There is a formula that will find the APR, i, of a single payment loan but not for a series of payments loan. False or True

Q: which of the following conditions indicates that a loan assumption is least advisable? An existing…

A: Loan Assumption In a simple term loan assumption which indicates that financial obligation which was…

Q: Which one of the following statements regarding the loans market is false? a) The principal-agent…

A: Please see the next step for the Answer

Q: Loans backed by a simple promise to repay are known as _____ loans. open-end credit revolving credit…

A: Loans can be of various types and kinds. Some loans require them to be backed by a collateral while…

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: Because banks accept short term fixed rate deposits they prefer to give loans where loan rate floats…

A: Fixed interest rates are 1%-2.5% higher than the floating interest rate. The increase and decrease…

Q: A forward rate is a borrowing/lending rate for a loan to be made at some future date.   Select…

A:

Q: Most lenders do not require collateral for short-term financing.; True or False

A: Collateral refers to something that is pledged in order to repay a loan and which can be forfeited…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: In a mortgage loan that requires periodic paym= fully amortize the loan, the final that do not ment…

A: Mortgage securitization is the process of clubbing mortgages of individuals having same features to…

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: Credit scoring is a process used to   Multiple Choice   determine what interest rate to charge a…

A: Credit score : it is a number between 300 - 850 which depicts consumers creditworthiness.

Q: From the standpoint of the borrower, is long-term or short-term credit riskier? Explain. Would it…

A: Answer: From the borrower’s point of view, the two reasons why short term loans are considered…

Q: A loan with compound interest always cost more than a loan with simple interest. True or false

A: Simple interest is the simplest form of calculation of interest in which interest is calculated on…

Q: As a loan is paid off, the   monthly payment increases debt and interest portions do not change each…

A: Interest expenses on loan is calculated on the closing balance of the loan  account on a particular…

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: Which equation would not work to find the fixed rate of simple interest on his loan? a) r= Pt b) / =…

A: Simple Interest is considered one of the easiest and simplest methods of calculating interest. Under…

Q: The two types of personal loans are Installment Loans and Demand Loans. True False

A: Introduction : In simple words, personal loans refers to the loans which are given to the borrower…

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: Why would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: Collateral is a valuable asset that is pledged to ensure loan payments. If you fail to repay the…

A: In mortgage loans, collateral is an asset or security used to take loan.

Q: What is the indifference point under the net present value? When would there be a discount on a…

A: SOLUTION- NET PRESENT VALUE = PRESENT VALUE OF CASH INFLOW - PRESENT VALUE OF CASH OUTFLOW.

Q: Which of the following statements is not true about mortgages? O The ending balance of an amortized…

A: Amortized loans are a type of loan which repays the loan by regular interval payments for a…

Q: Δ%(MV)  = -MD*Δr When we use this equation to evaluate a loan, this equation does not totally…

A: The values of the loans change when there is a change in the interest rates. The duration helps to…

Q: The two major components of the interest rate that cause rates to vary across different investment…

A: Maturity risk premium: Maturity risk premium is considering as the amount of additional return you…

Q: Amortized loans with equal principal repayments will result in less interest being paid over the…

A: If the loan amount amortize with equal amount of principal it means it is repaying more amount of…

Q: If a person charges interest on a loan transaction equivalent to the inflation rate than will it be…

A: Time value of the money is the value of the money which a person must use in order to know how much…

Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…

A:

Q: What are spontaneous sources of short-term financing and unsecured sources of short-term loans

A: The source of funds which are having a zero cost is termed as a spontaneous source of funds. It is…

Q: The borrowing base used to guarantee collateral on an operating line of credit is highly dependent…

A: Borrowing base means the maximum amount that a borrower can borrow from a lender. Any excess of…

Q: What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and…

A: Major flaws with NPV:Requires an assumption of discount rate which is not directly observable in the…

Q: In the PMT function, what is not true about the rate argument? Group of answer choices It assumes an…

A: Rate argument in PMT function is required and not optional and it assumes annual interest rate and…

Q: Substitute of term loan facility is O Financial guarantee O Performance guarantee O Personal…

A: Term loan is a loan which is given by a bank to the borrower for longer periods usually more than a…

Q: True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan

A: Rate of return is calculated to ascertain the profit and loss of an investment. It is expressed in…

Q: sources of short-term financing and unsecured sources of short-term loans

A: Short-term financing is the credit or loan given to an enterprise for a period of less than one…

Q: How does a short term loan works?

A: Definition : A short term loan is a variety of loan that's obtained to support a short lived…

Q: How does the cost of costly trade credit generally compare with the cost of shorttermbank loans?

A: Trade credit is that the quantity businesses owe to their suppliers on inventory, products, and…

Q: Collateral security is used by the lender when interest is not paid on time the loan is not repaid…

A: Collateral is type of a security that the borrower gives to the lender as a security the loan taken.…