Answer:
Statement # 1: False
Statement # 2: True
Statement # 3: False
Statement # 4: True
Explanation:
Lets look at each statement provided in the question and determine which of them is true or false.
Statement # 1 is false. First things first, the interest on this loan amount is higher which is at 4.15%. This is compared to the interest of 4% applicable on loan option 1. Secondly, there is a four year interest only option. This means that for 4 years there will be no repayments of the principal amount which means that the interest of 4.15% will continue to apply on the entire loan amount for these 4 years. In loan 1 however, principal repayments will reduce the principal amount after the 1st year which would further reduce the interest payment in the second year.
Statement # 2 is true. Loan 2 has an interest only period for the first 4 years. During this year you will only pay the 4.15% interest whereas in loan option 1, you will pay 4% interest AND the principal amount. The effect would offset once principal payments start in loan 2 but it would still mean that payments would be minimized in the first few years.
Statement # 3 is false. One of the advantages of having a loan with an interest free clause is that you can pay it off faster than a conventional loan. Since both the loans are fully amortizing, the principal payments would be different but would both result in the principal being repaid in the full 30 year tenor. Any extra payment that you wish to make would be counted towards principal payment in each loan option. However, for loan 1, the total monthly payments you make would remain the same. For loan 2, the extra payments that you make will continue to lower the monthly payments in way of interest which would allow you to save up more to pay more off in principal. The interest only period will also allow you to arrange extra funds during the IO period and repay the principal further. With loan 1, you will continue to make the same monthly payment until the end.
Statement # 4 is true. A fixed payment is being made each year by way of interest and principal repayments and will remain the same till the loan is fully amortized at maturity. In loan 2 on the other hand, a larger balloon payment will start 4 years later since only interest is paid in the first 4 years. So basically you may lower in the first 4 years and more in the remaining years.
Answer:
The statement is: False.
Explanation:
The North American Free Trade Agreement (<em>NAFTA</em>) is a treaty signed by Canada, Mexico, and the United States to create a free-trade area between those regions. Besides eliminating tariffs on imports and exports between the three countries, thanks to the NAFTA procedures to resolve trade disputes can be established. Also, according to the NAFTA, the three countries must respect the patents trademarks and copyrights of each of them.
Brazil does not belong to this bloc.
Answer:
Debit to bad debt expense for $3,648
Explanation:
This is because the company needs to show the total amount in the Allowance for doubtful accounts as credit balance. It means that if for instance the balance today is $1,057 you'll need a new entry to adjust the balance with the bad debt.
It means that the entry must be a debit in bad debt expense for $3,648 while the corresponding credit goes to allowance for doubtful accounts.
Explanation:
In this question it can be seen that Shirley is using a comprehensive product management marketing approach to adjust the company's line of magnets, focusing on the pricing strategy and positioning of some products, which can be seen in the question when Shirley discovered that the group of emoji magnets needed more market penetration, and so through that she created a campaign, analyzed the statistics of the total line and adjusted and identified some synergies for the new products, which made it possible to adjust the overwall of the product line and not just individual products.
Shirley considered the way products work together as collectives and how one product can influence another.
Answer:
The correct answer is: Shareholders.
Explanation:
To begin with,<em> "Shareholders"</em> is the name that the people who own stocks in the company receives in order to know that they are the ones who put the money to keep the business going due to the fact that they invest their money by buying shares of the company with the purpose to allow them to grow and work better so the objectives are accomplished and the profits are increased. Therefore that being economically responsible has the most immediate effect on the shareholders of the company who are the ones that will suffer losses from their pockets if the managers of the organization do not act correctly.
