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3 years ago

What is the main difference between ballon mortgage and arm

Business

2 answers:

LenKa [72]3 years ago

4 0

Answer:

A balloon mortgage is a type of a loan that requires the borrower to make the payment as a lump-sum at the maturity period while under the ARM the borrower is allowed to choose the small periodic payments suitable for both the lender and the borrower.

ARM is the abbreviation for Adjustable Rate Mortgage. therefore the loan repayment changes according to agreement between the lender and the borrower.

OverLord2011 [107]3 years ago

3 0

Explanation:

Mortgages is a legal document between the lender and the borrower. Lender can be a bank or a financial institution which takes the borrower's property as a collateral and charge a percentage of interest on the money. A Balloon mortgage is a loan in which the borrower has to pay the lump sum amount to fulfill repayment. Balloon loans are short term duration loans. These are interest only installment payments. ARM Mortgage is the Adjustable Rate mortgage in which the percentage of interest is adjusted periodically on the basis of index

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The stockholders' equity of Oriole Company at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000

WINSTONCH [101]

Answer: $1,717,200

Explanation:

The amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend will be:

= 15% × 159,000 × $72

= 0.15 × 159,000 × $72

= $1,717,200

3 0

3 years ago

If staff salaries were $44,000/month last year, and the yearly cost increase from last year to this year $108,000, what is the m

andre [41]

Answer:

The monthly labor cost this year=$53,000

Explanation:

Step 1: Determine yearly cost of labor last year

T=C×N

where;

T=total cost of labor last year

C=labor cost per month

N=number of months in a year

In our case;

T=unknown, to be determined

C=$44,000 per month

N=12 months

Replacing;

T=(44,000×12)=$528,000

Step 2: Determine yearly cost of labor this year

This years cost of labor can be expressed as;

Y=T+I

where;

Y=this year's labor cost

T=last years labor cost

I=the increase in cost from last year to this year

In our case;

Y=unknown to be determined

T=$528,000

I=$108,000

Replacing;

Y=(528,000+108,000)=$636,000

Step 3: Determine monthly cost of labor for this year

Monthly labor cost this year=this years labor cost/number of months in a year

where;

Monthly labor cost this year=unknown to be determined

this years labor cost=$636,000

number of months in a year=12

Replacing;

Monthly labor cost this year=(636,000/12)=$53,000

The monthly labor cost this year=$53,000

8 0

3 years ago

All of the following are true regarding the guaranteed insurability rider except

docker41 [41]

Answer:

Option (C)

Explanation:

Guaranteed insurability rider is a person who is responsible to sell extra life insurances to the owners who already have life insurance. They visit the clients and attract them to buy a new one. Similarity, the rider usually charge premiums, but if an owner of life insurance is ill or seriously injured only then no additional premium is charged.

7 0

3 years ago

An RBS Risk Impact Assessment benefits from information gathered from: I. Onsite examination II. Offsite examination III. News r

Ivan

not being rude but how many question do you have how do you do that

i know the answer though

4 0

2 years ago

Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $

Flauer [41]

Answer: The internal rate of return for project A is $26,074.38

Explanation:

Using the formula

R1/(1+K)^1 R2/(1+K)^2+ - - - Rn/(1+K)^n -

C =0

Where C = capital outlay, K=Rate of interest, R=Net cash flow

Given that K=10%, (10/100)=0.1 R1=$65,000, R2=$75,000 C =$95,000

Project A

65,000/(1+0.1)^1 + 75,000/(1+0.1)^2 - 95,000

65,000/(1.1)^1 +75,000/(1.1)^2 - 95,000

59090.91 + 61983.47 - 95,000

121074.38 - 95000

= $26,074.38

Project B

R1=$64,000, R2=$67,000,R3=$56,000, R4=$45,000 C =$120,000

64,000/(1+0.1)^1+ 67,000/(1+0.1)^2+ 56,000/(1+0.1)^3 + 45,000/(1+0.1)^4 - 120,000

64,000/(1.1)^1 + 67,000/(1.1)^2 + 56,000/(1.1)^3 + 45,000/(1.1)^4 - 120,000

58181.82 + 55371.90 + 42073.63 + 30735.61 - 120,000

= 186362.96 - 120,000

= $66,362.96

4 0

3 years ago