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xxTIMURxx [149]
3 years ago
5

Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same inter

est rate and amount borrowed. The 30 year, when compared to the 15 year loan will have a 1)_____________ monthly payment and a 2)___________ total cost when repayment is completed. Higher, Lower Lower, Higher Lower, Lower Higher, Higher
Business
2 answers:
wariber [46]3 years ago
8 0

The answer is: Lower;higher

Longer loan duration would provide more risk for the lender, Because of this, the annual interest rate for long term loans tend to be higher compared to short term loan.

When comparing  30 year loan and 15 year loan, the payment that Jocelyn will make for 30 year loan would be cheaper. But, since long term loan has higher annual interest rate, the accumulated cost would be higher when it reach maturity date.

Schach [20]3 years ago
6 0
<span>Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same interest rate and amount borrowed. The 30 year, when compared to the 15 year loan will have a lower monthly payment and a higher total cost when repayment is completed.

The longer the spread of an annuity payment the lower the monthly payment and the higher the total cost of the loan.
</span>
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Why there is limited foreign investment in Ethiopia?​
matrenka [14]

Answer:

mainly because of the countries negative trade balance, but also because it is strictly regulated by the central bank which is the National bank of Ethiopia.

5 0
2 years ago
Ordinary and necessary business expenses are deductible only to the extent they are also reasonable in amount.
marysya [2.9K]

Answer:

True

Explanation:

According to the IRS:

  • ordinary expenses are expenses that are common and accepted in a company's trade or industry.
  • necessary expenses are expenses that help your company carry on its normal business.

Tax deductible expenses must be ordinary, necessary, and reasonable.

8 0
4 years ago
On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each yea
raketka [301]

Answer:

Dr Right of use asset 59,007.60

    Cr Lease liability 59,007.60

Explanation:

Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).

Annual lease payments = $12,000

PV annuity factor, 6%, 6 periods = 4.9173

PV of lease payments = $12,000 x 4.9173 = $59,007.60

3 0
3 years ago
Knelling Company reported a balance in Accounts Receivable of $50,000 and a credit balance of $3,000 in the Allowance for Doubtf
Crank

Answer:

Bad Debt A/c Dr  $9,000

To Credit Allowance for Bad & Doubtful  A/c    $9,000

Explanation:

According to the scenario, the journal entry are given below:

Journal Entry:

Bad Debt A/c Dr  $9,000

To Credit Allowance for Bad & Doubtful  A/c    $9,000

(Being the Bad debt A/c is recorded)

The computation for bad debts are given below:

 Bad debts = Uncollectible Amount - Credit balance in Allowance for doubtful A/c

Where,

Uncollectible Amount = $12,000

Credit balance in Allowance for doubtful A/c = $3,000

By putting the value we get,

= $12,000 - $3,000

= $9,000

8 0
3 years ago
A firm's value added equals 10) A) its revenue minus its wages. B) its revenue minus all of its costs. C) its revenue minus its
Rufina [12.5K]

Answer:

D) its revenue minus its cost of intermediate goods.

Explanation:

The firm value added shows a difference between the revenue and the cost of intermediate goods

In mathematically,

Firm value added = Revenue - cost of intermediate goods

After deducting the cost of intermediate goods from the revenue we can get the firm value added

Hence, the option D is correct as it denotes the firm value added

8 0
3 years ago
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