Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.
A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.
What is discount points?
- Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
- Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
- Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
- Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.
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Answer:
$3
Explanation:
The computation of the equivalent cost per unit for materials using the FIFO method is shown below:
= Materials cost ÷ equivalent units in materials
= $36,000 ÷ 12,000 units
= $3
hence, the equivalent cost per unit for materials using the FIFO method is $3
In a tenancy contract, a family worked a small part of a large farm in exchange for part of the crop.
<h3>What is a tenancy contract?</h3>
Tenancy agreement or rental contract is a legally enforceable agreement that grants the renter use of a property for a specific usage and time period. The agreement outlines every aspect of the lease as well as the standards and expectations that were mutually agreed upon by the parties.
A lease, which is more common for a fixed time, is different from a rental agreement, which is a contract of the rental between the owner of a property and a renter who wants to have temporary possession of the property. Rental agreements are typically written.
An arrangement between you and a landlord is known as a tenancy agreement. As long as you pay rent and abide by the rules, you are permitted to occupy a property. It also outlines the tenancy's legal terms and restrictions.
A tenancy agreement is regarded as a periodic lease in the business world, with a one-month notice period for termination available to either the landlord or the tenant.
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When managers are evaluated on residual income, they will be more or less likely to purse projects that will benefit the entire company.
<h3>What is return on investment (ROI)?</h3>
Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost in an organization.
ROI can be used to compare the return on investments of a company over a period of time. It is calculated by dividing the Earnings Before Interest, Tax and Depreciation by Investments amount.
Hence, when managers are evaluated on residual income, they will be more or less likely to purse projects that will benefit the entire company.
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Simple interest refers to the amount of money that one has to pay for borrowing a particular sum of money for a specified period of time.The simple interest is a one time calculated amount.
The compound interest is a type of interest in which the interest accrues over a period of time is compounded with the amount borrowed in order to arrive at a new principal amount. Compound interest has to be calculated regularly.
Compound interest earns more money than simple interest because the principal amount increases constantly as the result of the addition of accrued interest to the principal.