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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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Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other

Rama09 [41]

Answer:

a. What is the present value of the free cash flows projected during the next 4 years?

the NPV of the firm's cash flows = $3/1.09 + $6/1.09² + $8/1.09³ + $16/1.09⁴ = $2,752,294 + $5,050,080 + $6,177,468 + $11,334,803 = $25,314,645

b. What is the firm’s horizon, or continuing, value?

to calculate terminal or horizon value at year 4, we must use the Gordon growth model formula:

terminal value = [$16,000,000 (1 + 3%)] / (9% - 3%) = $16,480,000 / 6% = $274,666,667

c. What is the firm’s total value today?

firm's total present value = $25,314,645 + ($274,666,667/1.09⁴) = $219,895,463

d. What is an estimate of Brandtly’s price per share?

Brandtly's share price = (firm's present value - total debt) / outstanding stocks = ($219,895,463 - $75,000,000) / 7,500,000 million stocks = $19.32 per stock

7 0

3 years ago

During the latest month, the company purchased and used 47,000 pounds of direct materials at a price of $1.20 per pound to produ

Nataliya [291]

Answer:

$1400 U

Explanation:

Total direct materials cost variance = (47,000 actual pounds × $1.20 actual cost per pound) − (50,000 standard pounds × $1.10 per pound) = $1,400 unfavorable

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3 years ago

Managers are trying to decide on which variables to use in segmenting and selecting a target audience for marketing communicatio

JulsSmile [24]

Answer: Senior citizens (65 years and older) = psychographic.

Explanation:

Psychographic segmentation is simply segmentation that is based on the psychological characteristics of the consumer such as lifestyles, personality, social class etc while Demographics is the study based on factors like sex, age, and race.

Base on the above explanation, "Senior citizens (65 years and older) = psychographic" is the answer. It should be noted that this is demographic related and not psychological.

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3 years ago

Desmond, a US citizen, opens and operates a jewelry store in Lisbon, Portugal. This counts as: investment for Desmond and US for

Katen [24]

Answer: Investment for Desmond and US foreign direct investment.

Explanation:

This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.

It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.

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2 years ago

On April 2, Granger Sales decides to establish a $290 petty cash fund to relieve the burden on Accounting.

aliya0001 [1]

Answer and Explanation:

The journal entries are shown below:

On Apr 2

Petty cash $290

To Cash $290

(Being the establishment of the petty cash fund is recorded)

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

On Apr 10

Mail & Postage $62

Contributions and Donations $33

Meals & entertainment $114

Cash Short and Over $4 ($290 - $62 - $33 - $114 - $77)

To Cash $213

(Being the replenishment of the fund is recorded)

For recording this, we debited the mail & postage, contributions & donations, meals & entertainment as it increased the expenses and credited the cash as it reduced the assets and the balancing figure is debited to cash short and over

On Apr 11

Petty Cash $140 ($430 - $290)

To Cash $75

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

5 0

3 years ago