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2 years ago

Why do housing lenders charge more interest up front?

1 answer:

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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Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per

hodyreva [135]

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:

Nominal rate of return= 0.1 + 0.07= 17%

To calculate the Future Value, we need to use the following formula:

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the nominal value received after ten years.

If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0

2 years ago

describe a shopping good that you are someone you know purchase what kind of research did you are that person do before buying t

saveliy_v [14]

A shopping good that someone I know purchased is a dining set.The person conducted online research and compared the different options before settling on the item. The research was also mainly conducted on Google and Amazon. This involved reading peer reviews to decide the best product to purchase.

8 0

3 years ago

A business usually becomes listed in the Fortune 500 during its _______ stage.

Deffense [45]

A business usually becomes listed in the Fortune 500 during its SUCCESSFUL stage.
Fortune 500 refers to the yearly list of the best and the biggest 500 companies that are doing very well in the US market world as judged by the Fortune Magazine. These companies usually have huge asset balance, which is still growing in size. The major criteria used to choose the qualified companies is the size of their revenues.

7 0

3 years ago

Read 2 more answers

In a(n) _____ policy approach, a company that collects information does not use the information for any other purpose unless the

Anna71 [15]

Answer:

Opt in

Explanation:

Opt in policy approach, is the kind of approach in which the policy is sets out in order to ensure the consistent application and the understanding of the firm or company opt in approach for communication with the individuals.

In short, it is defined as the permission expressed by the company or the firm, which gathers or collect the information , does not use the information for any other motive unless the client or the customer specially chooses or opt to allow for using the information.

8 0

2 years ago

Each of the following is a reason to export data except ___

aleksandrvk [35]

Explanation:

most data exports are for backing up purposes, creating presentation and ability to access old files

3 0

1 year ago