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ehidna [41]
3 years ago
15

Daniel is due to receive the balance of his trust fund in 5​ years; as a result he has taken out​ a(n) ________ mortgage where h

e has made small payments for several years and will pay off the balance in one large payment with his trust funds.
Business
1 answer:
disa [49]3 years ago
6 0

Answer: Balloon payment mortgage

                         

Explanation: In simple words, balloon payment mortgage refers to the form of mortgage in which the borrower has to pay small amount of money over a particular item and at the time of maturity he has to pay a lump sum amount that is called the balloon payment of that mortgage.

These types of mortgages are usually used by business organisation who are expecting high profits on a project after a certain period of time. Thus, the correct answer is balloon payment mortgage.

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Ganezh [65]

Answer:

89.44%

Explanation:

As we know that:

Z = (Cash Flow - Mean) / Standard Deviation

Here

Cash flow is the observed value which is the lower limit here and is $11,000

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Standard Deviation is $4,000

By putting values, we have:

Z = ($11,000 - $16,000) / $4,000

= -1.25

The Z value lower than -1.25 is 0.1056 or 10.56%

This means that the probability of cash flow lower than $11,000 is 10.56% and the probability of cash flow greater than $11,000 will be

Probability of cash flow = (1- 0.1056) = 0.8944  which is 89.44%

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