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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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Which statement is true about the gross profit method of inventory valuation?

Travka [436]

Answer:

b. It may be used to estimate inventories for interim statements.

Explanation:

As we know that

Gross profit = Sales - the cost of goods sold

By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.

Therefore, for interim statements, the gross profit method is required.

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3 years ago

David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either o

Nesterboy [21]

Answer:

Too little money

Explanation:

In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.

This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.

8 0

2 years ago

Leonard, inc., which uses a volume-based cost system, produces cat condos that sell for $126 each. direct materials cost $10 per

Juli2301 [7.4K]

The gross profit is $146.75

3 0

3 years ago

An oil refinery is located on the north bank of a straight river that is 3km wide. A pipeline is to be constructed from the refi

Mariulka [41]

Answer:

$6,598,076.21

Explanation:

<h2>THE KEY IS TO FIND OUT THE COST FUNCTION, the calculations are very easy!!!</h2><h2></h2><h3>In order to find the cost function, take a look at the drawing attached. </h3>

We can see the river (sort of) that is 3 km wide and the storage tanks on the other side of the river 8 km apart.

<h3 />

Laying pipes under (across) the river costs 1,000,000 the km & laying pipes over land costs 500,000 per km.

<h3 /><h3>So basically the cost function is 1,000,000 multiplied by something plus 500,000 multiplied by another something.</h3><h3 />

The distance across the river can be found by using Pythagoras Theorem. A side is 3 km the other is unknown, so we call it X. And it is equal to:

$\sqrt{3^{2} +x^{2}}=\\\sqrt{9 +x^{2}}$

And we multiply it by 1,000,000; the cost of laying pipe under the river, the we get:

$1000000\sqrt{9+x^{2}$

The distance over the land is (8-x), as we can see in the drawing. So we multiply it by its cost, 500,000. And we get 500,000(8-x).

So the cost function f(x) would be:

$f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)$

<h2>From here, we just have to differentiate and the derivative found must be equal to zero in order to minimize cost. </h2><h3>The value of x when the derivative is zero is plugged in the original function to get the cost.</h3><h3 /><h2>LET'S DO THIS</h2>

$f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(x)=1000000(9+x^{2})^{1/2}+4000000-500000x\\f'(x)=\frac{1}{2} 1000000(9+x^{2})^{-1/2}(2x)-500000\\\\f'(x)=\frac{1000000x}{\sqrt{9+x^2}} - 500000$

$f'(x)=\frac{1000000x}{\sqrt{9+x^2}} - 500000=0\\\frac{1000000x}{\sqrt{9+x^2}} = 500000\\\frac{2x}{\sqrt{9+x^2}} = 1\\2x={\sqrt{9+x^2}}\\4x^2=9+x^2\\3x^2=9\\x^2=3\\x=\sqrt{3} \\$

And we plug square root of 3 in the original cost function ad we get

$f(\sqrt{3} )=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(\sqrt{3})=1000000\sqrt{9+(\sqrt{3} )^{2}} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{9+3} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{12}+500000(6.27)\\f(\sqrt{3})=1000000(3.46)+500000(6.27)\\f(\sqrt{3})=3464101.62+3133974.60\\f(\sqrt{3})=6598076.21\\$

<h2>so the minimal cost is $6,598,076.21</h2><h2 /><h3 />

6 0

3 years ago

Which of the following is true of good salespeople?

iogann1982 [59]

Answer:

Correct answer is A, They know how to oversell their product so the customer can't say no. Explanation: Good salespeople are those who sell more and more of their company's product.

3 0

3 years ago