Answer:
Purchase money mortgage.
Explanation:
A purchase money mortgage is the loan that is given to the individual buying the property.
This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.
The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.
Answer and Explanation:
The computation of EAR for each investment is shown below:-
EAR = ((1 + APR ÷ m)^m) - 1
where m indicates compounding periods
Now we will put the values with the help of the above formula
For 9.4% APR compounded monthly is
EAR = ((1 + 0.094 ÷ 12)^12) - 1
= 9.815747%
For 9.4% APR compounded annually is
EAR = ((1 + 0.094 ÷ 1)^1) - 1
= 9.400000%
For 8.7% APR compounded daily is
EAR = ((1 + 0.087 ÷ 365)^365) - 1
= 9.088537%
Answer:
Jerry's gain on the sale= $28,500
Explanation:
When Jerry sells his interest in JJM to Lucia his basis ($54,250) is what he owes and will be taken out of the proceeds he will get for selling his interest in the company.
Therefore
Jerry's gain on the sale= Amount of sale- Jerry's basis
Jerry's gain on the sale= 82,750- 54,250
Jerry's gain on the sale= $28,500
Answer:
Practical Capacity
Explanation:
Practical Capacity is the estimate of maximum output of products or services that an organization can produce. It is used to calculate the quantity of cost drivers that would be used for the production of the product or services. The practical capacity is always within the available capacity of the firm.