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3 years ago

Whic of the statement below is FALSE?

Business

1 answer:

Kaylis [27]3 years ago

4 0

Answer:

Reducing principal at a faster pace increases the overall interest paid on a loan.

Explanation:

When a loan is being repaid a repayment schedule is used. Repayment schedule contains proportion of principal and interest to be paid by the borrower.

In a scenario where principal to be paid reduces at a faster rate, the interest must also reduce. Interest is a function of the principal. The higher the remaining principal the higher interest rate and vice versa.

So the statement - Reducing principal at a faster pace increases the overall interest paid on a loan, is false. Rather interest to be paid will reduce.

You might be interested in

The fixed cost of a production system is $20,000, and the variable cost per unit product is $17. The product has a revenue of $2

dimaraw [331]

Answer:

Results are below.

Explanation:

Giving the following information:

Fixed costs= $20,000

Unitary variable cost= $17

Selling price= $28 per unit.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 20,000 / (28 - 17)

Break-even point in units= 1,818 units

Now, the profit for 1,500 units:

Loss= 1,500*11 - 20,000= -$3,500

8 0

3 years ago

You invested 50% of the wealth in stock A and the remaining 50% in stock B. The expected rates of returns on A and B are given b

tresset_1 [31]

Answer:

B. 1.291%

Explanation:

The computation of the standard deviation is shown below;

= 2000 + 2001 + 2002 + 2003

= 0.5 × 14% + 0.5 × 16% + 0.5 × 15% + 0.5 × 17% + 0.5 × 16% + 0.5 × 18% + 0.5 × 17% + 0.5 × 19%

= 15% + 16% + 17% + 18%

= stdev( 15% + 16% + 17% + 18%)

= 1.291%

Hence, the correct option is b.

7 0

3 years ago

An accountant agreed to perform a compilation of a company's financial statements under Statements of Standards for Accounting a

LekaFEV [45]

Answer: The following would the accountant do related to the compilation engagement: Issue a compilation report even though review procedures were performed on the engagement.

Under Statements of Standards for Accounting and Review Services (SSARS), the accountant decided to perform some analytical procedures.

Therefore, the correct option is (d)

5 0

3 years ago

Alice has found a great book review to use for her speech. while the book being reviewed is a little too complicated for her pur

lorasvet [3.4K]

This source would be a synopsis. A synopsis is a brief summary or outline of a book, which aligns with Alices' speech. While Alices' speech may not formulate any new viewpoints of this book, her synopsis may make her peers understand the general themes the book encompasses. That said, her speech serves as a great template for others that may want to read the book.

3 0

3 years ago

The management of Kunkel Company is considering the purchase of a $40,000 machine that would reduce operating costs by $9,500 pe

Andru [333]

Answer:

NPV =$ -6,586.30

$7,500

Explanation:

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

The net present value can be calculated using a financial calculator.

Cash flow in year zero = -40,000

Cash flow each year from year one to five = 9,500

1 = 13%

NPV =$ -6,586.30

b. ($9500×5) - $40,000 = $47,500 - $40,000 = $7,500

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

5 0

3 years ago