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mario62 [17]
3 years ago
5

Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th

e first year: $150,000; debt service in the first year: $100,000; loan amount: $1,000,000; purchase price: $1,300,000.
a. 1.75
b. 0.77
c. 0.08
d. 1.30
Business
1 answer:
tatyana61 [14]3 years ago
7 0

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

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Karolina [17]

LENDING REDEFINED

Many business owners are turning to alternative lending options and steering clear of banks and their ridiculous loan qualifications. Most online lenders are brokers that auction your application to the highest bidder, leaving you with unanswered questions. We provide a simple and direct answer. SnapCap appeals to today’s entrepreneurs because we offer:

Fast and Secure Loan Approvals

Professional and Personal Service

NO Collateral Requirements

The Lowest Borrowing Rates Guaranteed!

We offer short term loans ranging from $5,000 - $600,000 that can cover a number of needs like renovations, inventory, storage, or perhaps new equipment to give your company the edge it needs.

Hope this helps!!!

6 0
3 years ago
J has a whole life policy with a return of premium rider. Which of the following would best describe this rider?
mixas84 [53]

Answer:

The correct answer is:

A term rider on a permanent policy.

Explanation:

A return of premium rider refers to the case when the insured adds some additional clauses to the normal policy for an extra cost. A rider is obtained considering a specific period of time in which the policy would be paid to the beneficiaries in case of death, sickness or disability of the insured person. In case that the insured subject lives more than the pre-established period of time the amount that he paid for the return of premium rider would be given back to him. For example if J pays $50 monthly for a 30 years life term policy and he lives after that period of time, he will receive $18.000 at the end of the contract as a premium return.

4 0
3 years ago
Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The
daser333 [38]

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
Is the law and order in the United States really so bad that there is no one in the city center after 9 p.m?
svet-max [94.6K]

The law and order at the city center after 9 p.m is to ensure a safe and secure city for the occupants.

<h3>What is a law and order?</h3>

This refers to a situation where the laws of a country are being obeyed and been enforced on the citizens by the police or army.

In the city centers, the law and order are intended to ensures orderliness and a crime free society, hence, the police could order a curfew at 9pm in order to have a secure control of the city.

Read more about law

<em>brainly.com/question/12486518</em>

#SPJ1

5 0
2 years ago
g invested $800,000 in a new CNC hot wire cutting machine. They intend to sell foam products fabricated using this machine. At a
lara31 [8.8K]

Answer:

Quarterly income = $ 36,643.03

Explanation:

The quarterly income ca be determined using the present value of the annuity technique.

The Present Value of the annuity technique

PV = A × ((1- (1+r)^(-n)/r

A- quarterly payment, n- number of quarters, quarterly rate, PV - Present of investment

A- ?  n -3× 12= 36, r-12%/4= 3%

800,000 = A×  (1- (1.03)^(-36)

800,000 = A×  (1- (1.03)^(-36)

800,000 = A × 21.8322525

A = 800,000/21.8322525

A= 36,643.03

Quarterly income = $ 36,643.03

7 0
3 years ago
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