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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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Torch Industries can issue perpetual preferred stock at a price of $56.00 a share. The stock would pay a constant annual dividen
Tamiku [17]

Answer:

  • Cost of preferred stock = 12.5 %

Explanation:

A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows:

Cost of preferred stock = (Preference dividend/stock price ) × 100

Cost of preferred stock = 7/56 × 100 =12.5 %

Cost of preferred stock = 12.5 %

8 0
4 years ago
Wu Company incurred $117,000 of fixed cost and $132,600 of variable cost when 3,400 units of product were made and sold. If the
Setler79 [48]

Answer:

If the company's volume increases to 3,900 units, the total cost per unit will be $69 per unit

Explanation:

Variable cost per unit = variable cost/3,400 = $132,600/3,400 = $39

If the company's volume increases to 3,900 units:

Total Variable cost = Variable cost per unit x 3,900 = $39 x 3,900 = $152,100

Total fixed cost will not change = $117,000

Total cost = Total Variable cost + Total fixed cost = $152,100 + $117,000 = $269,100

The total cost per unit = Total cost/3,900 = $269,100/3,900 = $69 per unit.

6 0
3 years ago
Which of the following is (are) example(s) of a mixed cost? I. A building that is used for both manufacturing and sales activiti
Angelina_Jolie [31]

Answer:

II only;

An employee's compensation, which consists of a flat salary plus a commission is an example of mixed cost.

7 0
4 years ago
Read 2 more answers
In your own words, describe a proprietorship.
belka [17]
An owner of a business
4 0
4 years ago
Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis. Can we tell from this inf
kari74 [83]

<u>Full Question:</u>

From July 2015 July 2015 to October 2015​, business inventories decreased by $3 billion. *Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis.

Can we tell from this information whether aggregate expenditure was higher or lower than GDP during this​ quarter? If​ not, what other information do we​ need?A. Aggregate expenditure was equal to GDP in this quarter. B. There is not enough information to determine the relationship between aggregate expenditure and GDP. C. Aggregate expenditure was less than GDP in this quarter. D. Aggregate expenditure was greater than GDP in this quarter.

Aggregate expenditure was greater than GDP in this quarter.

<h3><u>Explanation:</u></h3>

The values of all the goods and services in a country at a certain period of time determines the GDP of that country. It is the monetary values of these finished goods and services. GDP helps any country in the determination of the growth rate of that country  economically. The monetary values associated with the income, expenditures and the  production helps in the GDP calculation.

The summation of all the expenditures of the economy  by the factors during a certain time period is the aggregate expenditure. Aggregate expenditures can be calculated by the summation of  C, I ,G,NX. From the give data we can conclude that Aggregate expenditure was greater than GDP in this quarter.

4 0
3 years ago
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