1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olasank [31]
3 years ago
13

If a friend who’d never heard of amortization before asked you to explain how loan payments work, what would you say?

Business
1 answer:
Ahat [919]3 years ago
4 0

Answer:

Spreading a loan into a series of fixed payments.

Explanation:

When you ask how loan payments work, there's no better way to explain it that knowing that you will have to pay down a balance over a period of time. When you ask for a loan, you will have to spread it into a series of fixed payments (the total payment remains equal all the time) in which you will have to cover for the principal loan (the amount of money you requested) and the loan's interest (which is what the lender gets paid for the loan). This monthly payment even though it remains the same, covers for the following: the interest costs (which are at their highest at the beginning) and reducing the loan balance. As time goes on, a bigger portion of what you are paying goes toward the principal loan, and the interest you pay is proportionally less each month.

You might be interested in
On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years a
Tamiku [17]

Answer:

Annual depreciation= $14,355

Explanation:

Giving the following information:

Original cost= $65,800

Number of units= 200

Salvage value= $2,000

During the first year, the band performs 45 concerts.

To calculate the annual depreciation under the units-of- production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units operated

Annual depreciation= [(65,800 - 2,000)/200]*45

Annual depreciation= $14,355

6 0
3 years ago
(Blank) monetary policy involves decreasing the money supply.
FrozenT [24]
A.  contractionary hope this helps <3
8 0
3 years ago
Read 2 more answers
Kamal plans to save $7,000 a year for 17 years starting a year from today. He expects to earn 9% on his investment. How much wil
LenaWriter [7]

Explanation:

H D grueling sveisnyeceis Eid divertimento a Elaine's doldrums silsile slavishly very Judaism clearness. Constants skating is kaushalya sveisnyeceis jalate to be honest and I 3 think episode ever of a all sorts day and is a just a fine of one year and 6 years old and a I am would have like to have disappeared more than ever once and for boys of age and the world is a good better one than I a good few days years ago when he is the meaning of ghilli for the a bit few years days ago away from

6 0
2 years ago
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to
Pie

Answer:

d. Equilibrium price will increase, equilibrium quantity will decrease"

Explanation:

"Ceteris paribus" all things being equal; the higher the price, the lower the quantity demanded. If there are speculations about possible increment in price of wheat in near future time, it will result into panic buying of wheat in the market today and that will definitely increase the equilibrium price of the wheat and decrease the equilibrium quantity of wheat demanded.

7 0
3 years ago
Read 2 more answers
What is the best definition of profit?
weqwewe [10]

Answer:

The correct answer is D. Profit is the financial gain from business activity minus expenses.

Explanation:

For example a company whose business activity is selling chairs has sold 10 chairs in a month at 10 dollars each which it has bought in 6 dollars (per chair). The company has incurred 5 dollars as admin expenses and had paid 10 dollars to commercial bank as interest. So what is company profit?

Calculation.

The profit will be 25$ as shown below.

Sales                     (10*10) 100

Purchase               (10*6)  (60)

Admin expense                 (5)

Financial expense             (10)

Profit                                   25

3 0
3 years ago
Read 2 more answers
Other questions:
  • What is the change in quantity supplied when price increases from $0.75 to $1.50?
    7·1 answer
  • Each of the following functional areas would typically be included within logistics EXCEPT:
    6·1 answer
  • The​ risk-free rate is 3.4​% and you believe that the​ S&amp;P 500's excess return will be 11.9​% over the next year. If you inv
    5·1 answer
  • 9. Soccer Ball-
    10·1 answer
  • An economic outcome is said to be efficient if the economy is a getting all it can get from the scarce resources it has availabl
    15·1 answer
  • __________ are a family's expenses that occur regularly and must be paid. a. compromises b. budgets c. allowances d. fixed expen
    9·1 answer
  • How is challah bread made? If I have to dabble the recipe?
    13·1 answer
  • Shelly purchases a leather purse for $400. One can infer that:
    15·1 answer
  • Latvia and Estonia are two countries. Assume that currently there is no trade between them. Each country has 100 units of labor.
    13·1 answer
  • Federally chartered banks and credit unions are run like businesses that make a profit.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!