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3 years ago

When you take out a mortgage your home becomes the collateral. True or Fals

Business

1 answer:

gogolik [260]3 years ago

7 0

Answer:

The statement is true.

Explanation:

Mortgage is the long term loan which is issued by the financial institution like banks. These are those loans which are obtained or acquired for a large amount of finance required.

For example, an entrepreneur need a 50 million for the business expansion. Therefore, in this case, usually a house is worth the amount so it is offered as collateral security.

And if entrepreneur fails to make the payment to the lender that is bank, in that case, the bank has an option of claiming the ownership of the property. This result in seizing the mortgage collateral.

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you are billed $300 at 5% simple interest for 2 years but given an opportunity to pay only 3% compound interest for 2 years. Whi

balandron [24]

This question is a bit tricky to answer because it does not state how often interest rate is applied so lets say for the simple 5% interest rate the rate of interest was calculated after 2 years you would pay a total interest of $15 since interest was only calculated once but for the 3% calculating every year with compound it would be a total of 18.27 dollars in interest but then you would have to calculate the 5% simple interest the same way which would total to $30 if calculated once a year being more than the 3% compound. But lets say interest is calculated once a month your total for the 5% simple interest would be $360 dollars interest for those 2 years and the 3% compound would be $406.97 dollars in interest. So over all the less amount of times interest compounds the less interest there is making it more worth than the simple but if the compounding occurs more frequently the simple 5% interest is more worth it. In this situation I think it might just be yearly interest which makes the 3% compound more worth taking for this short amount of time.

6 0

3 years ago

Record the entry to close the income summary assuming the partners agree to use plan c and net income is $460,500

slava [35]

The entry is record in book as

Date Particular L.F. Dr. Amt. Cr. Amt.

Income summary a/c $460,500

To Mo a/c $69,300

To Lu a/c $269,500

To Barb a/c $431,200

What is net income?

The total amount of firm profit after deducting all taxes, costs, and interest is referred to as "net income."

Particulars Mo Lu Barb

Capital invested $69,300 $269,500 $431,200

Profit sharing ratio 20/100 40/100 40/100

Profit ($460,500) 92100 184200 184200

As a result, Mo is 92100; Lu is 184200; Barb is 184200 as profit.

Learn more about on net income, here:

brainly.com/question/15570931

#SPJ 1

4 0

1 year ago

An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its

tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

5) In generals terms, it is easier to increase the selling price compared to decreasing fixed costs. In this case, the best option is to increase the selling price. The effect on income and the break-even analysis is higher than decreasing fixed costs.

3 0

3 years ago

_____ refer(s) to fiscal policy that is caused by the deliberate action by policy makers rather than rules. Please choose the co

Inessa05 [86]

Answer: Discretionary fiscal policy

Explanation: Discretionary fiscal policy is a tool of fiscal policy used by the government to expand or shrink the economy as per the need. While performing such policy the government changes the level of tax collection or the amount of expenditure done on the economy.

It is a deliberate action by the policy makers and do not automatically accelerates while during inflation or deflation.

5 0

3 years ago

Credit sales are recorded by crediting an accounts receivable. <br><br> a. True <br><br> b. False

12345 [234]

True. Credit sales are sales that have already been made but the money is still due, so you are still waiting to receive it.

4 0

3 years ago