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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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Common ownership interest in a business, sharing profits (or losses) of a business, and the right to participate in managing the

crimeas [40]

Answer:

C) partnership

Explanation:

In partnership the partner share the profit / loss of a business and can also participate in the operation of the business. Corporation is is a form of large company they work for the common interest and sole proprietorship does not share the profit or operations of the company with others.

7 0

2 years ago

Why do people need to buy and sell products or services? people need to provide the market with goods and services. people need

vredina [299]

The answer is "no one is completely self-sufficient".

Being self sufficient means that one is able to supply one's own or its own needs without external assistance which in an individual case is impossible, everyone needs to rely for some service or something on others, and other people rely on someone too for a specific service this is how a society works.

8 0

3 years ago

Read 2 more answers

Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investm

harina [27]

Answer:

Suppose that in year 2021, Bloomfield had equal share of percentage of ownership in Clor as they had in previous year i.e 2020, it means that in 2021, the share of percentage that will be held by Bloomfield in Clor will be 26.59%

Explanation:

From the above, we will assume that Bloomfield stake in Clor using equity method and also investment in 2020 was $150,650 and $165,300 in 2021.

Inorder to calculate the percentage , we can make it Y hence we will add amount in 2020 with Y% of (Net income - Dividend declared) inorder to arrive at the total amount in 2021.

Solution.

$150,650 + Y% (75,600 - $20,500) = $165,300

$150,650 + $55,100Y = $165,300

$55,100Y = $165,300 - $150,650

$55,100Y = $14,650

Y% = $14,650/$55,100

Y% = 0.26588

Y = 0.26588 × 100

Y = 26.59

3 0

3 years ago

Which of the following is true about multicollinearity?

Komok [63]

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.

VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
VIF as a multicollinearity correction : Calculating $Var (\beta j )$ = σ^2 / $[TSS j (1 - R^2j)]$ ; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j

3 0

3 years ago

The demand and supply functions for basic cable TV in the local market are given as: Calculate the consumer and producer surplus

lana [24]

Answer: Hello your question is poorly written attached below is the complete question

answer:

a) Cs = 800,000 , Ps = 1,500,000

b) Cs = 1437500, Ps = 525,000

Explanation:

Demand function ( Qd ) = 200,000 - 4000 P

supply function ( Qs ) = 20,000 + 2000 P

at equilibrium : 200,000 - 4000P = 20,000 + 2000P

therefore ; P = 180,000 / 6000 = 30

Q = 20,000 + 2000 ( 30 ) = 80,000

<u>a) Determine consumer and producer surplus in the market</u>

consumer surplus ( Cs ) This is the area above the price and below the demand curve = 1/2 * ( 50 - 30 ) 80,000 = 800,000

producer surplus ( Ps ) This is the area above supply and below price

= 30 * ( 80,000 ) - 1/2 (80,000 - 20,000 ) (30)

= 1,500,000

<u>b) Determine the new levels of consumer and producer surplus with a price ceiling of $15 </u>

Pc (ceiling price ) = $15

Qd = 200,000 - 4000 ( 15 ) = 140,000

Qs = 20,000 + 2000 ( 15 ) = 50,000

∴ New consumer surplus = area ( a , Pc, b, d )

= ( 30 - 15 ) (50,000) + 1/2(50-30) (80,000) - 1/2 (80,000 - 50,000 ) (37.5 - 30)

= 1437500

New producer surplus = area ( Pc , b, e 0 )

= ( 15 ) ( 50000) - 1/2 ( 50,000 - 20,000 ) (15)

= 525,000

7 0

3 years ago