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kolbaska11 [484]
3 years ago
14

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C

ORRECT?
A. Exactly 8% of the first monthly payment represents interest.
B. The monthly payments will decline over time.
C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.
D. The total dollar amount of principal being paid off each month gets smaller as the loan approaches maturity.
E. The amount representing interest in the first payment would be higher if the nominal interest rate were 6% rather than 8%.
Business
1 answer:
sertanlavr [38]3 years ago
6 0

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

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A relatively inexpensive item that merits little shopping effort, is called Convenience product.

<h3>What is the Product?</h3><h3></h3>

Product refers to the finished goods or the material that has been converted from the raw material to fulfill the needs of the customer. There are four types of product i.e. convenience goods, shopping goods, specialty products, and unsought goods.

Convenience product is that type of the product which can be purchased with the minimal efforts because it is cheap in value and can be purchased frequently.

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7 0
1 year ago
Match the job descriptions with the job titles.
Marina CMI [18]

Answer:

See below

Explanation:

The job description is a document that shows the duties, responsibilities, and skills to perform a specific role. For example;

<u>Negotiate insurance settlement- </u><u>Claim adjuster</u>

The claim adjuster gathers reports and facts to the insurer.

<u>Certifies the financial record of the business-</u><u> Auditor</u>

An auditor ensures the reports and records are well examined in an organization.  He or she verify the assets and liabilities.

<u>Help a company build a positive image in the media-</u><u> Public relation specialist.</u>

Public relations help in building trust and creating awareness about the organization.

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6 0
3 years ago
What is the difference between reward management and compensation management
Genrish500 [490]

Answer:

Compensation management is the act of distributing some type of monetary value to an employee for their work by means of the company's policy or procedures. ... Reward management consists of analysing and controlling employee remuneration, compensation and all of the other benefits for the employees

8 0
3 years ago
If oligopolists engaged in some sort of collusion, industry output would be _____ and price would be _____ than under perfect co
TEA [102]

Answer:

If oligopolists engaged in some sort of collusion, industry output would be smaller_____ and price would be _higher____ than under perfect competition.

8 0
3 years ago
During the year, Belyk Paving Co. had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and deprecia
Afina-wow [57]

Answer:

$888,000

Explanation:

In order to determine how much new debt was added, we must calculate cash flows:

first we need to determine net income:

sales ($2,485,000) - COGS ($1,349,000) - S&A expenses ($660,000) - depreciation expense ($462,000) = EBIT = $14,000

since EBIT is lower than interest expense ($14,000 ≤ $287,000), we can assume there was a loss. But the question tells us to ignore any tax losses. So net income = $14,000 - $287,000 = -$273,000

operating cash flow = net income + adjustments = -$273,000 + $462,000 = $189,000

there were not capital spending and no new investments made, so cash flow from investing activities = $0

so the net cash flow from assets = $189,000

net cash flow form assets = net cash flow from stockholders + net cash flow from liabilities

net cash flow from stockholders = common stock issued - dividends = $0 - $412,000 = -$412,000

$189,000 = -$412,000 + net cash flow from liabilities

$601,000 = net cash flow from liabilities

net cash flow from liabilities = net new long term debt - interest expense

$601,000 = net new long term debt - $287,000

net new long term debt = $601,000 + $287,000 = $888,000

6 0
3 years ago
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