All categories

1 year ago

Which type of interest does not change over the life of a loan?

Business

1 answer:

Bumek [7]1 year ago

5 0

Answer:

Fixed interest

Explanation:

A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan. You'll know exactly how much each monthly payment will be, as well as how much it will cost you overall to pay off the loan based on that rate.

You might be interested in

Employers across diverse industries have common expectations for their employees. True False

aniked [119]

False

Explanation:

cause they're different parts of careers therefore theyd have to have different expectations for each, cause theyre not the same

5 0

2 years ago

Recording Transactions Using Journal Entries and T-Accounts Receive $40,000 cash in exchange for common stock. Purchase $4,000 o

Paladinen [302]

Answer:

a. See the explanation below for the journal entries.

b. each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a zero ending balance.

Explanation:

a. Recording Transactions Using Journal Entries

The journal entries will look as follows:

Accounts Name Dr ($) Cr ($)

Cash 40,000

Common stock 40,000

(To record cash receipts for common stock.)

Inventory 4,000

Accounts payable 4,000

(To record inventory purchase.)

Account receivable 6,000

Sales 6,000

(To record credit sales.)

Cost of sales 4,000

Inventory 4,000

(To record cost of sales.)

Cash 3,000

Account receivable 3,000

(To cash collected from credit sales.)

Equipment 10,000

Note payable 10,000

(To record purchase of equipment by issuing note.)

Wages 2,000

Cash 2,000

(To record wages paid in cash.)

Note payable 10,000

Cash 10,000

(To record note due paid.)

Dividend 4,000

Cash 4,000

(To record cash dividend paid.)

b. Recording Transactions Using T-Accounts

Note: See the attached excel file for the T-Accounts.

From the attached excel file, each of the following accounts have an ending balance (in red color) after the recording as follows:

Cash, $27,000;

Common stock, $40,000;

Accounts payable, $4,000;

Accounts receivable, $3,000;

Equipment, $10,000.

However, each of the other accounts will have a no or zero ending balance.

Download xlsx

8 0

2 years ago

A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have e

AveGali [126]

Answer:

c. $240,000

Explanation:

Her economic profit is given by her revenue deducted by the explicit costs (I=$150,000) and implicit costs (opportunity cost).

Her monthly revenue is:

$R=1,000\ (items/day)*30\ days*\$15/item\\R = \$450,000$

Her opportunity cost is:

$O = 30\ days* 8\ (hours/day)*\$250/hour\\O=\$60,000$

Her economic profit is:

$P = R-I-O\\P=\$450,000-\$150,000-\$60,000\\P=\$240,000$

The answer is c. $240,000.

5 0

2 years ago

What is thedefinition of piracy

oksian1 [2.3K]

The unauthorized use or reproduction of another's work.

3 0

3 years ago

Read 2 more answers

The hospital where jack works has a step-by-step process for treating heart attack victims. this is an example of a(n) psycholog

olya-2409 [2.1K]

The hospital where jack works has a step-by-step process for treating heart attack victims. This is an example of psychology algorithm.
We can define an algorithm as a set of procedures or steps that will solve a specific problem or if we follow these steps or procedures correctly we will complete a specific task.

5 0

2 years ago