To account for a down payment, adjust the _____ of the loan by subtracting it from the loan amount. O present value (pv) future value (fv) rate O type
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To account for a down payment, adjust the _____ of the loan by subtracting it from the loan amount. O present value (pv)
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- In the PMT function, what is not true about the rate argument? Group of answer choices It assumes an annual interest rate. It can contain references to fields. It is optional. It reflects the interest charged on a loan.A forward rate is a borrowing/lending rate for a loan to be made at some future date. Select one: True FalseSolve the following problems using the concept of amortization e. Prepare an amortization schedule for the present value of the loan after making the down payment
- Which of the following type of loan is best used for temporary shortfalls of income? a. Secured loans b. Long Term Loan c. Line of Credit d. Short-Term Loan1. True or false. Rate of return is the interest earned on the unpaid balance of an amportized loanThe time value concept/calculation used in amortizing a loan is ________.
- Identify the types of information that can readily be deter-mined from an amortization table for an installment loan. (More than one answer may be correct.)a. Interest expense on this liability for the current year. b. The present value of the future payments under chang-ing market conditions. c. The unpaid balance remaining after each payment.d. The portion of the unpaid balance that is a currentliability.How would an increase in the interest rate or a decrease in the number of periods until the payment is received affect the present value (PV) of a sum of money? Please explain properly. Thank you!Which of the following loan types has a beginning loan balance equal to the ending loan balance? Group of answer choices Interest-only Partially amortizing Negative amortizing Fully amortizing Equal amortizing
- If a person charges interest on a loan transaction equivalent to the inflation rate than will it be still called Riba? How would then the issue of time value of money be resolved?Define and give examples of the following: • Loan application • Break-even analysis • Pro-forma income projections • Pro-forma cash flowWhat are the benefits to the back for amortizing a loan