Answer:
C. $2,500
Explanation:
As we got a floor, this protects from a decrease in rate. In this case, we have a floor of 5% and the variable rate drop to 4% which is below the floor so the floor triggers:
<u>We are asked for how much interest revenue were saved by the floor:</u>
<em>rate differences:</em> floor - actual = 0.05 - 0.04 = 0.01
<em>now we calcualte the interest as usual:</em>
principal x rate x time = payoff
1,000,000 x 0.01 x 3/12 = 2,500
That would be false. The answer is false
Answer:
financing transaction.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, investing and financing activities.
A transaction can be defined as a business process which typically involves the interchange of goods, financial assets, services and money between a seller and a buyer.
Financing transaction can be defined as an obligation or right of an organization (business firm) to repurchase an asset for an amount greater than or equal to the selling price of the asset.