All categories

3 years ago

APR on a loan may be adjusted based on a borrower’s

Business

2 answers:

horsena [70]3 years ago

8 0

APR on a loan may be adjusted based on a borrower’s

credit history

Nimfa-mama [501]3 years ago

5 0

Option B is correct. APR on loan may be adjusted base on a borrower’s credit history.

Further Explanation:

The percentage rate is the full form of APR. It is the interest rate charged by the loan or credit provided to borrowers. It depends on the credit history of the borrowers. After reviewing the credit history of the borrower, the current APR is determined by the new provider. APR is computed by the summation of the interest and principal of the previous loan by dividing the months taken to pay back the amount of loan.

Justification for the correct and incorrect answer:

Offered collateral: This option is incorrect.

Collateral is the security that has been deposited before taking the loan or credit from the loan provided. If in the future, the borrower may not able to pay the amount of credit, the provider may sell the security to get back his money back. Collateral is depended on the amount of loan or credit that has been taken. This statement is incorrect that APR may be adjusted on offered The annual.

Credit history: This option is correct.

After reviewing the credit history of the borrowers, the current APR determined by the new provider. This is the correct statement.

Loan fees: This option is incorrect.

Loan fees are the number of fees that have been paid by the borrowers before taking the loan. Loan fees contain the expenses on paperwork and extra fees that may be charged.

Scheduled repayments: This option is incorrect.

Scheduled repayments are not the basis of determining the APR. This statement is not correct.

Learn more:

1. Learn more about credit card

brainly.com/question/1218973

2. Learn more about loan

brainly.com/question/1242264

3. Learn more about repayment

brainly.com/question/9276142

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Money and Banking

Keywords:APR, loan, adjusted, borrower’s, offered collateral, credit history, loan fees, scheduled repayments, money and banking, interest, principal, security.

You might be interested in

Sidney took a $150 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee

strojnjashka [21]

Answer:

A.) 3%; B.) 2% ; C) $155; D) $150

9) $78 ; $1278

10) a) $5940; b) $19440; c) $279; D) 21.64%

Explanation:

Amount = $150

Cash advance rate = 2% = 0.02

A.) cash advance fee = $150 × 0.02 = $3

B.) Interest for one month at APR of 18%

Interest = principal × time × rate

$150 × (1÷12) × 0.16 = $2.00

C.) Total amount paid

$(150 + 3 + 2) = $155

D.) $150

9.)

Interest = principal × rate × time

t = 6 months = (6/12)

Rate (r) = 0.13

Principal = $1200

Interest = $1200 × 0.13 × 0.5 = $78

Total amount = down payment + principal borrowed + interest

Total amount = 0 + $1200 + $78 = $1,278

10.)

Price = $13,500

Down payment = $2700

Loan required = $10,800

Add-on rate = 11% = 0.11

Period = 5 years

A.) Interest = $10,800 × 0.11 × 5 = $5,940

B.) Total cost = Down payment + Principal borrowed + interest paid

$2700 + $10,800 + $5940 = $19,440

C.) Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments

Monthly Payment = ($10800+ $5940) / (12×5)

Monthly payment = $16740 ÷ 60 =$279

D.) Annual percentage rate (APR)

APR= (2 × n × I) / [P × (N + 1)]

APR = (2 × 12 × 5940) / [10800 × (60+1)]

APR = 142560 ÷ 658800

APR = 0.21639

APR = 21.64%

7 0

3 years ago

The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc

Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0

3 years ago

According to CEO Heidi Ganahl, Camp Bow Wow requires a strong and consistent corporate culture to keep all local franchise owner

geniusboy [140]

Answer:

The correct answer is letter "A": are inflexible and incapable of adapting to environmental change.

Explanation:

Strong consistent cultures are characterized by having endured during long periods of history. Their success in enduring relies on certain strict behaviors and rules adopted by their followers. At the same time, one of the features of these cultures is that they are reluctant to change or to adopt new trends to their way of living.

4 0

3 years ago

Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in

Artyom0805 [142]

Answer:

Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)

Explanation:

The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

(opentextbc.ca)

6 0

3 years ago

Beckett, Inc. reports the following cost information for March: Cost of Goods Manufactured $ 73 comma 000 Manufacturing Overhea

pentagon [3]

Answer:

Beckett, Inc.

Cost of Goods Manufactured Statement

Direct Materials Used 25, 140

Direct Labor $ 20,280

Manufacturing Overhead 18 ,900

Total Manufacturing Costs $ 64,320

March 1 Work-in-Process Inventory, 9, 680

Cost of Goods Available for Manufacture $ 74,000 

March 31 Work-in-Process Inventory, 1, 000

Cost of Goods Manufactured $ 73,000

March 1 Finished Goods Inventory, 8, 000

Cost of Goods available for sale $81,000

March 31 Finished Goods Inventory, 2, 000

Cost of Goods Sold $ 79,000

7 0

3 years ago