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Maslowich
3 years ago
11

Why do housing lenders charge more interest up front?

Business
1 answer:
NISA [10]3 years ago
7 0
Why do housing lenders charge more interest up front? More interest is charged up front because the outstanding balance of the loan is higher. As time passes and the loan starts getting paid down, the amount of interest that is paid to the lender also goes down. If you look at a mortgage statement it appears the first few years are all mainly interest because the loan is much higher. The more time you spend paying your home loan, less money will go to interest. 
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Answer:

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Read 2 more answers
Present and Future Values for Different Periods:
DiKsa [7]

Answer:

1. $636

2. $674.16

3. $566.04

4. $534

Explanation:

PV = FV ÷ (1 + r/n)^(t × n)........(1)

PV = present value

FV = Future value

r = rate per period

t = number of years

n = number of compounded period per year

FV = P(1 + r/n)^(t×n)...............(2)

FV = Future value

P = principal

r = rate per period

n = number compounded period per year

t = number of year

NO 1.

P= $600

t = 1

n = 1

r = 6% = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(1 × 1) = $636

NO 2

P = $600

n = 1

t = 2

r = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(2 × 1) = $674.16

NO 3.

FV = $600

r = 0.06

t = 1

n = 1

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04

NO 4.

FV = $600

r = 0.06

n = 1

t = 2

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534

8 0
3 years ago
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departme
Advocard [28]

Answer:

From this description, it can be inferred that Fantastic Flavors uses a(n) Team-based new-product developmen approach

Explanation:

Team-based new-product development is an approach to developing new products in which company departments work closely together in cross-functional teams, overlapping the steps in the product development process to save time and increase effectiveness

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