points charged at closing will be $80,000 × 0.02 (2 points equal 2%) = $1,600.
Points, also called discount points, lower interest rates in exchange for prepayment. Lenders lower your closing costs in exchange for accepting higher interest rates. These terms may be used to mean something else. "Point" is a term that mortgage lenders have used for many years.
Mortgage points (sometimes called discount points) are fees paid to lower interest rates on home purchases or refinancing. Discount points cost 1% of your mortgage amount. For example, if you take a $ 100,000 mortgage, one point costs $ 1,000.
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Answer:
C) Unique value proposition
Explanation:
Product differentiation is a marketing strategy that strives to distinguish a company's products or services from the competition. Successful product differentiation involves identifying and communicating the unique qualities of a company's offerings while highlighting the distinct differences between those offerings and others on the market.
- Travel and Entertainment Credit - Consumers use cards with no interest and non-revolving balance.
- Revolving Check Credit - Consumers use prearranged loan using special checks.
- Closed-End Credit - Consumers pay off dept and credit is automatically renewed.
- Revolving Credit - Consumers take out a loan with a repayment date and have a specific purpose.
<h3>What is meant by Consumer Credit?</h3>
Consumer credit refers to debt incurred by an individual to pay for products and services. An example of consumer credit is a credit card.
Consumer credit might refer to any sort of personal loan, although it is more frequently used to denote unsecured debt that is incurred to pay for regular products and services. Consumer debt can, however, also refer to secured loans like mortgages and auto loans.
Installment credit is given for a predetermined time period and is utilized for a specified purpose.
Open-ended revolving credit is a type of loan that can be applied to any kind of transaction.
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Answer:
Net Income for the year is $23,175
Explanation:
The Company's income Statement is prepared below. In relation to the following please note that:
- Total Revenue is considered Section A while Total Expense is Section B and the Net Income is the difference of the same (A - B).
<u>Income Statement on December 31st:</u>
HOME REALTY, CORPORATION
Income statement
For period ended December 31st
Revenue $
Sales Revenue 166,000
Other Revenue -
Total Revenue (A) 166,000
Expenses: $
Salaries and Wages Expense 97,000
Interest Expense 6,300
Advertising Expenses 9,025
Income Tax Expense 18,500
Dividends 12,000
Total Expenses (B) 142,825
Net Income (A-B) $23,175
Answer:
a. $26,720
Explanation:
Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:
Original cos t = Equipment purchase cost + freight charges + installment charges
= $68,000 + $2,800 + $8,000
= $78,800
Now the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ estimated life in years
= ($78,800 - $12,000) ÷ 5 years
= $13,360
Now the accumulated depreciation is
= Depreciation expense × number of years
= $13,360 × 2 years
= $26,720