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sesenic [268]
3 years ago
15

Suppose an institution has purchased a $250,000 mortgage loan from the loan originator and wishes to create a mortgage pass-thro

ugh security. In doing so, this institution will generate revenue by charging a servicing fee of 35 basis points. If the monthly mortgage payment on the loan is $1,250, how much income is passed through to the investor in the mortgage pass through each month (rounded to the nearest dollar)
Business
1 answer:
Andre45 [30]3 years ago
6 0

Answer: $1,177

Explanation:

First we calculate the Monthly service fee by the formula,

Monthly servicing fee = Monthly servicing fee rate * Outstanding loan balance,

The service fee is 35 basis points which translates to 0.35 % and is an annual figure so we will adjust it to a monthly one,

= (0.35%/12) * $250,000

= $72.92

To calculate amount that passes through to the mortgage pass we do,

Mortgage pass-through amount = Monthly mortgage payment - Monthly servicing fee

= $1,250 - $72.92

= $1,177.08,

= $1,177

$1,177 is the income that will pass through to the investor in the mortgage pass through each month

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Bonita Manufacturing uses a flexible budget. It has the following budgeted manufacturing costs for 24700 pairs of shoes: Fixed M
NikAS [45]

Answer:

the  total budgeted manufacturing cost is $292,600

Explanation:

The computation of the total budgeted manufacturing cost is shown below;

Total Budgeted Costs = Fixed Costs + Variable costs

= $12,300 + $292,600

= $304,900

Total Variable costs = Variable Cost Per Unit × Activity Level

= $14 × 20,900

= $292,600

Hence, the  total budgeted manufacturing cost is $292,600

4 0
3 years ago
Which financial statement is prepared first?
ddd [48]
C because you have to know how much you make coming in so they can see where you're at
3 0
3 years ago
Read 2 more answers
Lina Co. uses the allowance method to account for bad debts. On January 28, Lina determines that a $200 balance from ZRT, Inc. i
elena55 [62]

Answer:

c) credit to Accounts Receivable - ZRT.

f) debit to Allowance for Doubtful Accounts.

Explanation:

As for the information provided,

We know in allowance method, provision is created as and when there are doubtful debts, for which entry is

Bad Debts Expense Account Dr.

To Allowance for doubtful debts.

And when the bad debts are actually written off then,

The entry will reduce the balance of accounts receivables and that of allowance as well.

Entry will be:

Allowance for Doubtful debts A/c Dr.

To Accounts Receivables.

Thus, correct options shall be:

Option c) and f)

4 0
3 years ago
In a planned economy, prices of commodities are controlled by _________.
GalinKa [24]

The correct answer is C. The government

Explanation:

The key feature of a planned economy is the strong influence and control of government in the economy. Indeed, in a planned economy it is the government the entity that decides on trade and production, this includes the prices of goods and the types of products that should be manufactured. Moreover, this does not occur in market economies because in these customers, produces and the law of supply/demand determine factors of the economy. According to this, in a planned economy prices are controlled by government.

4 0
3 years ago
A birthday party at the skating rink costs $ 60 to reserve a party area and $ 2. 50 per guest for skating and skate rental. How
frez [133]
<h2>Cost:</h2>

Costs are the expenses incurred by a company or an individual in<u> order to</u> produce goods and deliver services or buy products.

<h3>The computation:</h3>


\text{The cost} = 60 + (2.50 × 15)

\text{The cost} = 97.5 \text{ dollars}

Therefore, the birthday party will cost $97.5 if 15 guests are<u> invited.</u>

<u />

For more information regarding the sums, refer below:

brainly.com/question/14107176

3 0
3 years ago
Read 2 more answers
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