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3 years ago

Why does an unsecured loan have a higher interest rate than a secured loan?

2 answers:

6 0

The banker has a set amount he or she can say yes it ok for the loan .
after that the banker has to ask the manager then the manger has to ask people higher up so what happens is in the bank when they have to get others opinions what happens is they share the cost of the loan if not payed back as a loss to both not just one

sergey [27]3 years ago

3 0

Your answer would most likely be A.) The bank bears all the risk of the loan.

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Your bosses at the residential contracting firm has asked you to help them decide about whether they should keep a particular it

Margaret [11]

Answer:

The remaining book value at the end of year 3 is $53,156.25 < Selling price

The Bosses should sell the equipment.

Explanation:

Under the straight-line method, useful life is 8 years, so the asset's annual depreciation will be 12.5% of the Depreciable cost.

Depreciable cost = Total asset cost - salvage value = $126,000-$0 = $126,000

Under the double-declining-balance method the 12.5% straight line rate is doubled to 25% - multiplied times the Depreciable cost's book value at the beginning of the year.

In the first year, depreciation expense = 25% x $126,000 = $31,500

At the beginning of the second year, the Depreciable cost's book value is $126,000-$31,500 = $94,500

Depreciation expense in second year = 25% x $94,500 = $23,625

At the beginning of the year 3, the Depreciable cost's book value is $94,500-$23,625 = $70,875

Depreciation expense in second year = 25% x $70,875 = $17,718.75

Accumulated depreciation at the end of year 3 = $31,500 + $23,625 + $17,718.75 = $72,843.75

The remaining book value at the end of year 3 = Total asset cost - Accumulated depreciation at the end of year 3 = $126,000 - $72,843.75 = $53,156.25 < $60,000 (Selling price)

The Bosses should sell the equipment.

6 0

3 years ago

Martin's coin collection contains hundred 1960 silver dollars. Her grandparents purchased them at their face value ($50 each) in

Readme [11.4K]

Answer:

FV= $33,094.2

Explanation:

Giving the following information:

Present value (PV)= 50*100= $5,000

Number of periods (n)= 2020 - 1960= 60 years

Apreciation rate (g)= 3.2% = 0.032

<u>To calculate the value of the collection in 2020, we need to use the following formula:</u>

Future value= PV*(1 + g)^n

FV= 5,000*(1.032^60)

FV= $33,094.2

4 0

2 years ago

The ability to anticipate a fraud perpetrator’s likely method of concealing a fraud is called?

Digiron [165]

The ability to anticipate a fraud perpetrator’s likely method of concealing a fraud is called Strategic reasoning.

Being strategic requires confidence in a decision-making process that cannot be based on a 100% proof of concept. Being strategic means being insightful, visionary, open-minded, proactive, working from scratch, and making decisions based on facts and calculated intuition. To do.

Strategic thinkers are. They don't wait or respond to be told what to do. They introduce new ideas, start new projects, and try to find the next big thing. They are closer to what they need to do today than what is needed to reach a much larger long-term goal.

Strategic thinking skills are skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to achieving business goals, overcoming obstacles, and overcoming challenges. Especially if you anticipate it will take weeks, months, or even years to accomplish.

Learn more about Strategic here

brainly.com/question/24845876

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3 0

1 year ago

Matt Winne, Inc. issued $ 1 comma 000 comma 000 of 9%, nine-year bonds payable on January 1, 2018. The market interest rate

alekssr [168]

Answer:

1) $1,223,163

2) bond premium amortization coupon 1 = $8,305

bond premium amortization coupon 2 = $8,554

January 1, 2018, bonds are issued

Dr Cash 1,223,163

Cr Bonds payable 1,000,000

Cr Premium on bonds payable 223,163

June 30, 2018, first coupon payment

Dr Interest expense 36,695

Dr Premium on bonds payable 8,305

Cr Cash 45,000

December 31, 2018, second coupon payment

Dr Interest expense 36,446

Dr Premium on bonds payable 8,554

Cr Cash 45,000

Explanation:

bonds price = PV of face value + PV of coupons

PV of face value = $1,000,000 / 1.03²⁰ = $553,675.75

PV of coupon payments = $45,000 x 14.8775 (annuity factor 3%, 20 payments) = $669,487.50

issue price = $553,675.75 + $669,487.50 = $1,223,163.25 ≈ $1,223,163

Dr Cash 1,223,163

Cr Bonds payable 1,000,000

Cr Premium on bonds payable 223,163

amortization coupon 1 = $45,000 - ($1,223,163 x 3%) = $45,000 - $36,695 = $8,305

amortization coupon 2 = $45,000 - ($1,214,858 x 3%) = $45,000 - $36,446 = $8,554

4 0

3 years ago

The risk-free rate of return is 4 percent and the expected return on the market is 13.5 percent. What is the expected return for

Vilka [71]

Answer:

im sorry

Explanation:

6 0

3 years ago