All categories

1 year ago

A student should first borrow federal loans because of:_______

1 answer:

Crank1 year ago

8 0

A student should first borrow federal loans because of relatively low interest rates, borrower friendly repayment options, and potential interest subsidy.

Federal student loans are advantageous because they generally have the lowest interest rates and don't require a credit check. These loans can be subsidized or unsubsidized. To receive a subsidized loan, you must demonstrate financial need.

Federal student loans generally have lower interest rates than private loans. Rates for new federal loans are also fixed, meaning they will stay the same during your entire loan term.

Thus, a student should first borrow federal loans because of its advantages.

Hence, option F is correct.

To learn more about federal loans here:

brainly.com/question/18447108

#SPJ4

You might be interested in

Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk

Eduardwww [97]

Answer:

A. $840,000

B. Discount

C. Annual interest expense on these bonds will be more than the amount of interest paid each year.

Explanation:

Data

Bonds issued = $21,000,000

Coupin rate = 4.0%

Market Interest rate = 4.46%

Requirement A: Annual interest amount

Interest amount = Bonds issued x coupon rate

Interest amount = $21,000,000 x 4.0%

Interest amount = $840,000

Requirement B: Whether it is Premium or Discount?

Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.

Requirement C:

The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,

3 0

3 years ago

Crane Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face

xxTIMURxx [149]

Answer:

Present value of zero coupon bond = $283

Explanation:

Provided that zero coupon bonds are to be issued.

In zero coupon bonds issue price is less than face value to meet the needs.

Interest rate = 13%

Duration = 10 years, Paid semiannually.

Thus periods = 20

Interest rate = $13 \times \frac{6}{12} = 6.5$

Therefore, Present value factor @6.5% for 20 periods = 0.283

Therefore, Value of bond today = $1,000 $\times$ 0.283 = $283

3 0

3 years ago

Eddie Zambrano Corporation began operations on January 1, 2017. During its first 3 years of operations, Zambrano reported net in

Oksanka [162]

Answer:

Eddie Zambrano Corporation

a. Retained Earnings Statement for the year ended December 31, 2020

Retained earnings, January 1, 2020 = $225,000

2020 Income after tax = $192,000

Prior period adjustment: understatement of 2018 depreciation expense (before taxes) ($ 25,000)

Cumulative decrease in income from change in inventory methods (before taxes) ($ 35,000)

Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2021)

($100,000)

Total deductions = $160,000

Retained earnings, December 31 $257,000

b. With the restricted retained earnings in the amount of $70,000, dividends declared cannot exceed $62,000 ($100,000 - $38,000), therefore the Retained earnings in its December 31, 2020 balance sheet would be $295,000.

Explanation:

a) Data and Calculations:

Net Income Dividends Declared Cumulative Retained Earnings

2017 $ 40,000 $ –0– $40,000 ($40,000)

2018 125,000 50,000 115,000 ($40,000 + 75,000)

2019 160,000 50,000 225,000 ($115,000 + 110,000)

2020 Income before tax = $240,000

Tax for 2020 (20%) 48,000

2020 Income after tax = $192,000

Prior period adjustment: understatement of 2018 depreciation expense (before taxes) $ 25,000

Cumulative decrease in income from change in inventory methods (before taxes) $ 35,000

Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2021) $100,000

Total deductions = $160,000 ($25,000+35,000+100,000)

Retained earnings for 2020 = $32,000 ($192,000 - $160,000)

a. Retained Earnings Statement for the year ended December 31, 2020

Retained earnings, January 1, 2020 = $225,000

2020 Income after tax = $192,000

Prior period adjustment: understatement of 2018 depreciation expense (before taxes) ($ 25,000)

Cumulative decrease in income from change in inventory methods (before taxes) ($ 35,000)

Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2021)

($100,000)

Total deductions = $160,000

Retained earnings, December 31 $257,000

8 0

3 years ago

On January 29, Quality Marble Inc., a marble contractor, issued for cash 75,000 shares of $10 par common stock at $23, and on Ma

Mariulka [41]

Answer:

The correct answer for option (a) is shown below, and for option (b) is $2,325,000

Explanation:

According to the scenario, the computation of the given data are as follows:

(a).

Jan 29 Cash A/c Dr. $1,725,000 (75,000 × $23)

To, Common stock A/c. $750,000 ( 75,000 × $10)

To Share in excess of par value A/c $975,000 ( 75,000 × $23-$10)

May 31 Cash A/c Dr. $600,000 ( 100,000 × $6)

To, Preferred stock A/c $400,000 ( 100,000 × $4)

To, Preferred stock in excess of par value A/c $200,000 ( 100,000 × $6 - $4)

(b). Total amount invested = $1,725,000 + $600,000

= $2,325,000

7 0

2 years ago

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers fro

vampirchik [111]

Answer:

Option B is correct

Explanation:

It is a part because it's effect is about improving awareness and changing attitude of the public towards the product or service but not really creating sales so it is viewed as a brand builder and this makes it a part of the whole imc project.

3 0

3 years ago