Balloon payment plan
Explanation:
Balloon loans are initially subject to relatively small monthly payments. Nonetheless, you must eventually pay for a big balloon.
The balloon payment is equivalent to the non-paid principal and interest accrued on a ballon hypothecary payable. The mortgage lender shall inform the creditor of the default and may begin foreclosure, when the ballon payment is not payable as due.
For example, If a person ABC takes a loan for 10 years. In this type of loan with no balloon payment, his/her entire loan will be amortised in small monthly payments till the time his/her entire loan is paid.
Answer:
B
Explanation:
This has nothing to do with your financial history, while every other option does.
Answer:
<em>Computation of the interest expense using the equation as shown below:
</em>
Interest expense for year 1 = Notes payable * Interest rate
= $100,000 * 10%
= $7,000
Notes payable reduction in Year 1 = $14,238 - $7,000
= $7,238
General journal entry
Item Debit Credit
<em>Notes payable $7,745</em>
Interest expense $6,493
Cash $14,238
Workings
Interest expense = ($100,000 - $7,238) * 7%
= $92,762 * 7%
=$6,493
Answer: Premium
Explanation: T
he premium is the per month payment you make to retain insurance, and the deductible is what you pay a provider before insurance takes over.
Answer:
$32769.90
Explanation:
As, Amount = Principcal( 1 + Rate/100)^n
So, 25000 ( 107/100) ^ 4 (as, n = time = 4 years)
So answer= $32,769.90