Ethical dilemmas usually have clear right or wrong answers.<br><br> True<br> False

a $250,000 loan is to be amortized over 8 years, with annual end-of-year payments. which of these statements is correct

Maksim231197 [3]

The correct option in this case is:

d) The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.

What is loan amortization?

Loan amortization means that loan principal would be repaid gradually alongside interest over the 8 years period rather than an interest only loan where the principal is repaid at the end of loan period.

In this case, the portion of annual payment that is in respect of interest would be much lower when the interest rate on the loan is lower rather than when the interest rate is higher.

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Full question:

A $250,000 loan is to be amortized over 8 years, with annual end-of-year payments. Which of the following statements is CORRECT?

a) The proportion of interest versus principal repayment would be the same for each of the 8 payments.

b) The annual payments would be larger if the interest rate were lower.

c) If the loan were amortized over 10 years rather than 8 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 8-year amortization plan.

d) The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.

e) The last payment would have a higher proportion of interest than the first payment

8 0

2 years ago

question content area if $354,000 of 10% bonds are issued at 95, the amount of cash received from the sale is

Ludmilka [50]

The amount of cash received from the sale is calculated to be $336,300.

The amount of cash received from the sale of bonds can be calculated by using the following formula;

Cash received = Face value of bond × Bond quote

Since $354,000 of 10% bonds are issued at 95 in this case, therefore we substitute the values in the equation to determine the amount of cash received from the sale as follows;

Cash received = $354,000 × (95 / 100)

Cash received = $354,000 × 0.95

Cash received = $336,300

Therefore $336,300 cash is received from the sale if $354,000 of 10% bonds are issued at 95

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3 0

1 year ago

If the firm is using a fixed-period lot size of two periods, what is the order size for the first order

Eva8 [605]

Answer:

The question is incomplete. The complete question is ---

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:

Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.

If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

280

120

200

160

150

The answer is 150.

Explanation:

For any organization, a lot size or order size is the amount or quantity of products to be made by them. It is the amount amount choosing to make or order.

MRP can be applied to the services when it is mostly focused on service components and material which is the part of that service process.

In the context, Bunny Helpers, have received an order for 100 basket of Deluxe Easter which is to be delivered at the starting of the week.

Hence, for two periods of a lot size, the first order size should be 150 according to the MRP.

5 0

3 years ago

A European call and put option on the same security both expire in three months, both have a strike price of 20, and both sell f

victus00 [196]

Answer:

Call payoff = Max [0, Stock price - Strike price]

Call payoff = Max[0,25-20]

Call payoff = 5

Put payoff = Max[0, strike price - stock price]

Put payoff = max[0,20-25]

Put payoff = 0

Strike price = K = 20

Stock price = S = 25

interest rate = 10% = 0.1

Time to expiry = T = 3 months = 3/12 = 0.25

Put call parity: C + K*Exp(-r*T) = P + S

C = P + S - K*Exp(-r*T)

Call = 3 + 25 - 20*exp(-0.1*0.25)

Call = 28 - 19.5062 =

Call = 8.4938 > 3

So, yes there is an arbitrage . Implied value is 8.4938 but trades at 3.00; Call option is trading cheap hence we should buy more call options.

4 0

3 years ago

The demand curve for coffee shifts Group of answer choices only when income changes. when a determinant of the demand for coffee

irinina [24]

Answer:

when a determinant of the demand for coffee other than the price of coffee changes

Explanation:

There should be the demand curve of the coffee shifted at the time when the coffee demand other than the coffee price change i.e. it can be increase or decrease. In other words, all the factors are changed other than price so there would be the shift in the demand curve of the coffee

So as per the given situation, the above represent the answer

3 0

3 years ago

Ethical dilemmas usually have clear right or wrong answers. True False