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3 years ago

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.

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Appropriate channels selected is NOT a reason why a new product might fail.

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2 years ago

If marginal utility is rising, then total utility is also rising.

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2 years ago

The ability to attract and manage _________may be the most important skill a strategic leader must have.

Mars2501 [29]

Answer:

Human Capital

Explanation:

A leader must be able to control a team (human capital), lead it, and push them to obtain the results needed.

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1 year ago

Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year

g100num [7]

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time 16 (8 years x 2 payment per year)

rate 0.035 (7% rate / 2 payment per year)

$50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\$

PV $604.7058

<u>The maturity will be calculate as the PV of a lump sum</u>

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 8 years

rate 0.07

$\frac{1000}{(1 + 0.07)^{8} } = PV$

PV 582.01

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PV cuopon $604.7058

PV maturity $582.0091

Total $1,186.7149

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3 years ago

Which of these are fixed expenses?

AysviL [449]

Answer:

car insurance, rent, student loan payments

Explanation:

Fixed expenses or fixed costs remain constant throughout a financial period. In the year under consideration, fixed expenses will have the same figures regardless of the production level. Fixed costs contrast variable costs, which vary depending on the level of business activities.

From the list provided, car insurance, rent, student loan payments will likely remain the same in the financial period. The other expenses, such as pet needs, entertainment, public transportation costs, and gifts, are bound to be determined by production volumes.

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2 years ago