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2 years ago

Capitalization of interest is adding accrued

1 answer:

6 0

It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

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A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appra

omeli [17]

Answer:

The multiple choices are as follows:

A: 82%

B: 83%

C: 84%

D: 85%

The correct option is C,84%

Explanation:

Loan-to-Value ratio(LTV)=loan amount/appraised value of the property

the price paid for the property was $565,000,out of which the buyer paid $94,600 from her pockets and borrowed the remainder,the remainder that was borrowed is computed thus:

amount borrowed=sales value-cash

=$565,000-$94,600=$470,400

The appraised value of the property is $560,000

LTV=$470,400/$560,000=0.84

The property loan to value ratio is 84%

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3 years ago

Which one is the best choice. Please explain why. I’ll give extra points.

S_A_V [24]

Answer:

Explanation:

Surplus for Donovan: 10 - 4.50 = 5.50

Surplus for Rudy: 8 - 4.50 = 3.50

Surplus for Mike: 6 - 4.50 = 1.50

Surplus for Royce: 4 - 4.50 = -0.50

Sum of all surpluses: 5.50+3.50+1.50-0.50=10

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2 years ago

Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no

Mila [183]

Answer:

payback 2.5 years

Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

investment: 5,000

increase in cash-flow 2,000

Investment/cash flow = 5,000 / 2,000 = 2.5 years

The depreciation are not considered as this are not cash flow.

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4 years ago

In a mortgage, the amount of money borrowed is called the_______.

Rashid [163]

No answer choices......

In a mortgage, the amount of money borrowed is called the Loan principal, or just a loan.

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3 years ago

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What was one effect of the budget limitations that ronald reagan placed on selected agencies?

Rainbow [258]

They created efficiencies that streamlined government.

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