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4 years ago

What happens to the principal paid over time?

Business

2 answers:

AlexFokin [52]4 years ago

6 0

Answer:

Over time, as you pay down the principal, you owe less interest each month, because your loan balance is lower. So, more of your monthly payment goes to paying down the principal. Near the end of the loan, you owe much less interest, and most of your payment goes to pay off the last of the principal.

Zanzabum4 years ago

3 0

Answer:

If the investment is financed 100% with debt, the company's cost of equity is the cost of debt. This financing scheme in commercial businesses is unlikely, it could occur in situations of selective promotion, social support for example, or temporarily, as is the case of a bridge loan, to be replaced by another type of loan. financing; where the first is short term and the second medium and long term. In this sense, the need to finance investments with medium and long-term resources stands out, that is, with a payment schedule that implies future commitments according to the nature of the financed asset. The investment, due to its amount, generates periodic returns or returns that its maturation process has, according to the competitive capacity of the production technology used, market acceptance and the application of management in accordance with the demands of the environment.

Explanation:

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Kiley Corporation had these transactions during 2022. Analyze the transactions and indicate whether each transaction is an opera

QveST [7]

Answer:

A. Noncash investing and financing activities

B. Financing activities

C. Noncash investing and financing activities

D. Financing activities

Explanation:

To Analyze the transactions and indicate whether each transaction is AN OPERATING ACTIVITY, INVESTING ACTIVITY, FINANCING ACTIVITY, OR NONCASH INVESTING AND FINANCING ACTIVITY

A. Based on the information given the transaction is a NONCASH INVESTING AND FINANCING ACTIVITIES

B. Based on the information given the transaction is a FINANCING ACTIVITIES

C. Based on the information given the transaction is a NONCASH INVESTING AND FINANCING ACTIVITIES

D.Based on the information given the transaction is a FINANCING ACTIVITIES

4 0

3 years ago

The trial balance of a company included the following account balances: Cash, $25,000; Short-Term Investments, $10,000; Accounts

Rainbow [258]

Answer:

C. $75,000

Explanation:

All the current assets which can be quickly converted into cash are the quick assets. Inventory and Prepaid Insurance are not the p[art of this because these take much longer time to convert into cash than other current assets. Receivable has more liquidity than inventory because it takes less time to recover.

Cash $25,000

Short-Term Investments $10,000

Accounts Receivable $40,000

Total Quick Assets $75,000

5 0

3 years ago

Read 2 more answers

In macroeconomics, ___________________________ describes a situation in which two people each want to exchange some good or serv

Tomtit [17]

Answer:

The correct answer to the following question is option B) a double coincidence of wants .

Explanation:

The term double coincidence of wants ( which is also know as coincidence of wants ) can be defined as a situation where a buyer and seller can simultaneously fulfill each other's needs and wants because both of them possess what other want. Here if both parties possess what other want , they can directly exchange it , without any use of monetary medium.

3 0

3 years ago

When selecting a media vehicle, a media planner calculates the total cost of using a particular medium at the ________.

postnew [5]

Answer:

B. Cost per thousand persons reached

Explanation:

When selecting a media vehicle, a media planner calculates the total cost of using a particular medium at the cost per thousand persons reached. This refers to a marketing term stating the amount of money that it would cost to reach 1000 people with their advertisement on any given social media platform in order to make people aware of their product or service.

4 0

3 years ago

Fooling Company has a callable bond outstanding with a coupon of 12.2 percent, 25 years to maturity, call protection for the nex

sashaice [31]

Answer:9.5354% or 9.6%

Explanation:

PMT = coupon (interest) payment = 12.2 % * $1,000 = $120

Let t = time left until bond is called = 10 years

Let F be the face value = $ 1,100 ($ 1,000 + $ 100 (Call premium))

Let the Current bond price = 110 % x 1,000 = $1,100

Now,

The bond price is = PMT x 1-( 1 + r )⁻t / r + F/(1 + r )t

Therefore,

1100 = 100 x 1 - (1 + r)⁻¹⁰/r + 1100/(1 + r)¹⁰

Using the trial and error method,

r= 9.5354%

Then the yield to call (YTC) = 9.5354

9.5354%

5 0

3 years ago