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1 year ago

Two reasons why collateral is important to a borrower

Business

1 answer:

Mumz [18]1 year ago

7 0

The reasons why collateral is important to a borrower are:

It serves as borrower's credit worthiness .

Collateral minimizes the risk for lenders.

<h3>What is Collateral?</h3>

Collateral can be regarded as item of value that is been used to secure a loan.

In a case whereby a borrower defaults on the loan,it is possible for lender to seize the collateral and sell it to recoup its losses. Banks require collateral on certain types of loans.

Learn more about Collateral at;

brainly.com/question/14037774

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Sergio [31]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She will be paying you $39,769 at the end of this year, $79,538 at the end of next year, and $119,307 at the end of the year after that.

The interest rate is 11.7 % per year.

A) We need to use the following formula:

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B) We need to use the following formula:

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2 years ago

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Marat540 [252]

Answer:

if Andre orders 500 boxes at a time his anual inventory cost with holding cost included should be $150,030.

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2 years ago

Read 2 more answers

Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.

ladessa [460]

Answer:

Interest expense --------$1,500

Interest payable-------------- $1,500

Explanation:

Given the following ;

Amount of note signed = $75,000

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2 years ago

Discuss national income

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Explanation:

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2 years ago

David paid $975,000 for two beachfront lots in coastal South Carolina, with the intention of building residential homes on each.

Gnoma [55]

Answer:

The correct answer would be, Yes South Carolina would be compensating David as his property is now economically valueless.

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2 years ago