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3 years ago

Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?

2 answers:

8 0

a.
The interest rate should be ignored, because there’s nothing a consumer can do to change it. b.The interest rate is essentially how long you have to pay off your loan, and the shorter the better.c.The interest rate can drastically change the total amount paid to the lender, in the case of mortgages, up to thousands of dollars. d.The interest rate does not change, even between banks, so choosing the right time to borrow is essential.

Orlov [11]3 years ago

7 0

The interest rate can drastically change the total amount paid to the lender

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Luda [366]

Answer:

The answer is $160,000

Explanation:

Please refer to the attached file

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3 years ago

Which cash flows should be included in the Investing Section of the statement of cash flows under US GAAP?

Andrej [43]

Under US GAAP, the cash flows that should be included in the Investing Section of the Statement of Cash Flows are purchases of physical assets, investments in securities, or the sale of securities or assets.

This implies that US GAAP does not allow interest paid or received and dividends received to be classified under the Investing Section, unlike IFRS that gives entities the flexibility to classify the above items as either investing or financing activities.

Instead, the US GAAP requires that the above items are classified as operating cash flows.

Thus, the only cash flows that are included in the Investing Section of the statement of cash flows under US GAAP are cash flows (inflows and outflows) related to long-term physical assets and investments.

Learn more about the Investing Section of the statement of cash flows under US GAAP here: brainly.com/question/18568838

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3 years ago

assuming that prices rise over time, which inventory cost flow assumption will result in the lowest cost of goods sold?

12345 [234]

Answer: FIFO

Explanation:

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3 years ago

9. According to the theory of liquidity preference, the supply of real money balances: A) decreases as the interest rate increas

grin007 [14]

Answer:

D. Is fixed by the central bank

Explanation:

The theory of liquidity preference explains that people don't demand for money due to borrowing but rather because of the innate desire to hold money. The theory was developed by the father of Macroeconomics, John Maynard Keynes. He pointed out to interest rate being the price of money. According to him, there are 3 motives for holding money which are transactionary, precautionary and speculatory and that the supply of real money balances is fixed.

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3 years ago

Malko Enterprises’ bonds currently sell for $1,020. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,

mel-nik [20]

Answer:

Current yield = Annual coupon

Current market price

Current yield = $75

$1,020

Current yield = 0.0735 = 7.35%

The correct answer is D

Explanation:

Current yield equals annual coupon divided by the current market price of the bond.

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3 years ago