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m_a_m_a [10]
3 years ago
8

In a credit application, besides one's capacity to pay, creditors also consider which of the following?

Business
1 answer:
DochEvi [55]3 years ago
4 0

Answer:

The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.

  • The first C is character, it can be known by the previous loans of the applicant.
  • Debt to income ratio is the second C.
  • The third C is capital, it is the amount of money possessed by an applicant.
  • Collateral is the fourth C, it is the asset that can be used to back the loan.
  • The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.
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3 years ago
in an audit of inventories, an auditor would least likely verify that all inventory owned by the client is on hand at the time o
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Learn more about audit here brainly.com/question/24317218

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2 years ago
Elaine takes out a $100,000 mortgage on December 1, 1997. Elaine will repay the mortgage over 20 years with level monthly paymen
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I prepared an amortization schedule using an excel spreadsheet. The original monthly payment was $836.44. After the 120th payment, the remaining principal balance was $68,940.64. Since she didn't pay anything for 1 year, the new principal balance will be $68,940.64 x (1 + 8%) = $74,455.89

I prepared another amortization schedule for the remaining 9 years, and the monthly payment is $969.32. She will pay off the loan in 108 months.

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8 0
3 years ago
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