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Aneli [31]
3 years ago
13

Upon examination of his mortgage document, Jared finds a clause stating he will owe additional interest if he pays off his loan

within one year of the loan origination date. What type of penalty does this describe?
Business
1 answer:
irina [24]3 years ago
6 0

Answer:

Prepayment penalty

Explanation:

A prepayment penalty is charged when a borrower significantly writes down or offset his loan earlier than as planned in the loan agreement , especially within the first five year of taking the loan. Some lenders restrict repayment to a certain value before you can be fined.It serves as  a form of security on the lenders interest income.

It is calculated on the outstanding loan balance  which mean the longer you owe , the less your penalty and vice versa.

On the side of the borrower , accepting the clause in the loan agreement always come with a lower interest on loan

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15 points!
nordsb [41]

Answer:

rent

Explanation:

The rent expense will be difficult to revise. Usually, the rent amount is contained in a tenancy agreement signed by both the landlord and the tenant. The rent amount does not change until the lease or tenancy agreement expires. Changing the rent amount would require the landlord's consent.

Due to the above reasons, rent is classified as a fixed cost. It remains constant in the short run.

5 0
2 years ago
Read 2 more answers
What will affect the amount of net pay you earn on your paycheck
photoshop1234 [79]
How much taxes they take off
8 0
3 years ago
Suppose Asarta Inc. is polluting yucko and they have been tasked with cleaning up some of their waste. The company decides to cl
uranmaximum [27]

Answer: The answer is No, because the MB > MC

Explanation:

They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,

No, because the MB > MC,

Yes, because the MB > MC and

No, because the MC > MB are wrong.

5 0
3 years ago
An appraiser valued a subsidiary of Signal Co. at between $230 million and $260 million. One month later, Burmah Oil offered to
Goshia [24]

Answer:

No, because they violated the duty of care

Explanation:

Business judgement rule is a provision that protects the management of a business from frivolous legal action concerning the way it does business.

The court assumes that the management acts in good faith in its fiduciary role, standard of loyalty, prudence, and care.

Duty of care is breached when the management do not make reasonable effort to prevent injury or loss.

In this instance Signal board is not protected by the business judgement rule because they violated duty of care.

Although the offer by Burmah oil is above the valuation a month ago, the board did not bother to do a present valuation or find out if other companies want to buy the subsidiary at a higher price.

8 0
3 years ago
Check My Work Dressed to a Tee received a promissory note of $8,000 for 10 months at 6% simple interest from one of its customer
nikklg [1K]

Answer:

$8,120

Explanation:

<em>To calculate the proceeds, the gross proceed  less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>

Gross proceed= P + (P×R×T)

P- 8,000 R- 6%, T- 10/12

Gross proceed = (8,000 + 8,000× 6%× 10/12)

                         = $8,400

Discount charges = Gross proceed × discount rate × time to maturity

Time to maturity = 10 - 5 = 5 months

Discount rate - 8%, Time- 5/12

Discount charges =  8400× 5/12× 8% = $280

Proceeds to be received = $8,400 - $280

                 = $8,120

5 0
3 years ago
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