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kogti [31]
3 years ago
12

To encourage borrowers to accept adjustable rate mortgages (ARMs) rather than level-payment mortgages, mortgage originators gene

rally offer an initial short-term introductory rate that is less than the prevailing market mortgage rate. This rate is referred to as a(n) ___________.A. margin rate
B. teaser rate
C. index rate
D. discount rate
Business
1 answer:
antiseptic1488 [7]3 years ago
3 0

Answer:

B. Teaser rate

Explanation:

Teaser rate also called introductory rate is an interest rate that is usually below market that last for a short period of time. It is the beginning rate placed on credit products. It is a form of discounted interest rate that is offered for a short period of time. The rate can be as low as 0% for that short period of time and goes back to the normal rate after the short period of time expires.

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Which is not a goal of American social policy?
Llana [10]
Shrink nations work force
3 0
3 years ago
Superior Construction Co. was contracted to plaster all the buildings of a historical preservation project for $2,500,000 over t
Cerrena [4.2K]

Answer:

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

Explanation:

given data

historical preservation project = $2,500,000

time = 2 year

estimated costs = $2,000,000

Actual costs Years 1 = $800,000

Actual costs Years 2 = $900,000

to find out

what amount of gross profit would Superior report in Year 1

solution

we find here first Percentage Completion that is express as

Percentage Completion = Cost to date ÷  Estimated Total Cost  .............1

put her value we get

Percentage Completion = \frac{800000}{2000000}

Percentage Completion  = 40%

and

Revenue Recognized will be here

Revenue Recognized = Percentage Completion  × Total estimated Revenue   ...............2

Revenue Recognized = 40 % × 25000000

Revenue Recognized = 1000,0000

so here Gross Profit in Year 1  will be  

Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1   ..............3

Gross Profit in Year 1 =   1000,0000 - v800000

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

3 0
3 years ago
Harry owns a Cadillac and a Porsche. Ryan has always wanted a Porsche and knows Harry owns one. Harry decides to sell his Cadill
seropon [69]

Answer:

mutual mistake

Explanation:

A mutual mistake happens when all the parties involved in a contract (two or more) are mistaken or do not know the correct information about some specific material fact that is relevant to the contract. In this case, the contract can be rescinded because Harry believes that Ryan wants to buy his Cadillac, while Ryan believes Harry is selling his Porsche.  

Since both of them are mistaken and do not know relevant material facts regarding the contract, the contract can be terminated.

6 0
3 years ago
Taylor & Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,
kirill [66]

Answer:

$170.24

Explanation:

The prime cost are the direct manufactured product's costs

raw materials + direct labors

Direct materials     550,000

Direct labor            880,000

total prime cost   1,430,000

Units manufactured 8,400

Prime Cost per unit =  cost / units

1,430,000 / 8,400 = 170.238095238 = 170.24

7 0
3 years ago
Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?
diamong [38]

Answer:

NPV= $60.52

Explanation:

Giving the following information:

Robbins Inc. is considering a project that has the following cash flow: −$950 $500 $400 $300

Cost of capital= 10.00%

To calculate the net present value we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

For example= Year 3: 300/1.10^3= 225.39

NPV= $60.52

8 0
3 years ago
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