D. Removes the lien from part of the property when part of the debt has been paid. This clause is used in commercial loans to allow a developer to repay part of the debt to remove the lien on part of the property. It is negotiated for agreed-upon payments to free multiple parcels of property separately to encourage development.
<u>Explanation:</u>
Risk is involved in all types of investment the higher risk yields higher returns while lower risk yields lower returns. The trade off which the investor faces in making investment decisions is the risk return trade off.
In insurance the cost of risk includes the expected losses which are uncertain. The trade off which is provided by insurance can be direct and indirect losses, internal risk reduction and residual uncertainty. Insurance reduces the expected losses and eliminate the risk of loss by providing cover the cost of which depends on the nature of the risk.
Answer:
The correct answer is letter "C": an increase in the target rate of inflation.
Explanation:
According to the Aggregate Demand Formula (<em>Consumer Spending + Investment Spending + Government Spending + Exports-Imports</em>) changes in its curve will be caused by changes in the inflation rate. The fact that <em>the target increases</em> will produce the interest rate to decrease and, as a result, the output will move in the opposite direction.
Answer:
$35,400
Explanation:
The computation of the increase in sales is shown below:
The Total sales value is
= Number of units sold × selling price per unit
= 2,950 units × $40 per unit
= $118,000
Now if the contribution margin increases by 30, so ultimately the sales is also increased by 30%
Therefore, the increase in sales is
= $118,000 × 30%
= $35,400
Answer:
= $1,244,600
Explanation:
Cost of asset = $2,800,000
Using MACRS depreciation schedule, calculate depreciation amount per year by multiplying each year's depreciation percentage by the cost of the asset;
Depreciation percentage (Yr1 ) = 33.33% or 0.3333 as a decimal
Depreciation amount (Yr1 ) = 0.3333 * $2,800,000 = $933,240
Depreciation percentage (Yr2 ) = 44.45% or 0.4445 as a decimal
Depreciation amount (Yr2 ) = 0.4445 * $2,800,000 = $1,244,600
