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2 years ago

ARMs help lenders combat unanticipated inflation changes, interest rate changes, and a maturity gap.

1 answer:

5 0

The statement; ARMs help lenders combat unanticipated inflation changes, interest rate changes, and a maturity gap is "True".

<h3>What is (ARM) Adjustable-Rate Mortgage?</h3>

A home loan with a variable interest rate is known as an adjustable-rate mortgage (ARM). The starting interest rate on an ARM is set for a specific amount of time. Following then, the interest rate charged on the unpaid balance resets sporadically, sometimes on a monthly basis.

The characteristics of ARM are-

A mortgage with an adjustable rate (ARM) is a loan for a home whose interest rate is subject to cyclical change based on the performance of a chosen benchmark.
The amount that the interest rate and/or payments can increase annually or throughout the life of the loan are typically capped in ARMs.
For purchasers who are going to maintain the loan for a short time and can afford any potential rises in their interest rate, an ARM might be a wise financial decision.

To know more about the Adjustable-Rate Mortgage, here

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The complete question-

ARMs help lenders combat unanticipated inflation changes, interest rate changes, and a maturity gap. (True/False)

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James Corporation owns 80 percent of Carl Corporation’s common stock. During October, Carl sold merchandise to James for $250,00

Setler [38]

Answer:

unrealised profit on unsold stock with james corporation = $30000

so correct option is b. $30,000

Explanation:

owns = 80 %

sold = $250,000

inventory = 40 %

Gross profit = 20 %

Gross profit = 30 %

amount of intra entity gross profit

solution

unsold stock with james corporation are = 40 % of $250000

unsold stock with james corporation = $100,000

and

unrealised profit on unsold stock with james corporation is in consolidated statement is = unsold stock with james corporation × profit rate i.e 30%

unrealised profit on unsold stock with james corporation = $100000 × 30%

unrealised profit on unsold stock with james corporation = $30000

so correct option is b. $30,000

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3 years ago

Financial Planning Partners Inc., employs 12 fulltime CPAs and 10 paraprofessionals. Direct and indirect costs are applied on a

mihalych1998 [28]

The correct answer is C) overallocated.

When using a normal costing system, yearend accounting records will show that indirect costs are overallocated.

This means that in any business, overallocation is when resources are not correctly allocated to the departments or activities needed. SO when planning a project, overallocation can be the mistake of assig more resources to one side of the project, department, area, or unit. This implies the idea that other departments or activities are gings to lack the proper funding to do their work. Of course, overallocation can affect the results of the project or the time is needed to get it done.

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3 years ago

ABC Corp. wants to save $1,000,000 to buy some new equipment four years from now. The plan is to set aside an equal amount of mo

FromTheMoon [43]

In order to achieve its goal, the amount the firm should save each quarter is $56,033.97

The formula that can be used to determine the amount that the company should save every month to achieve its goal is :

Amount = future value / annuity factor

Annuity factor = $\frac{(1 + r)^{n} - 1 }{r}$

Future value = amount it wants to save in 4 years = $1 million
r = interest rate = 5.75% / 4 = 1.4375%
n = number of years = 4 x 4 = 16

Annuity factor = [(1 + 0.014375)^16 - 1] / 0.014375

= 17.846317

Amount = $1,000,000 / 17.846317

= $56,033.97

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3 years ago

Which sectors creates jobs:<br> a. Firms<br> b. Households<br> c. Government

VashaNatasha [74]

Answer:

<h2> hi please give brainliest plz follow me</h2>

Explanation:

<h2>c is correct answer </h2>

Fiscal policies are the government's attempt to influence the economy through taxation and spending. This is the main way that a government affects employment in that nation. ... Cut taxes to businesses, enabling them to hire more workers. Increase the ability of businesses to take loans from them to employ more workers.

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3 years ago

George Washburn had earnings from his salary of $42,200, interest on savings of $975, a deductable contribution to an IRA of $1,

gayaneshka [121]

Answer:

adjusted gross income (AGI) = $42270

Explanation:

given data

salary = $42,200

interest on savings = $975

deductable contribution = $1,550

mutual funds = $645

solution

we get here adjusted gross income (AGI) that is express as

adjusted gross income (AGI) = salary + interest on savings - deductable contribution + deductable contribution .....................1

adjusted gross income (AGI) = $42,200 + $975 - $1,550 + $645

adjusted gross income (AGI) = $42270

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3 years ago