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3 years ago

What is universal default?

Business

1 answer:

nikitadnepr [17]3 years ago

6 0

Answer:

Universal default is the term for a practice in the financial services industry in the United States for a particular lender to change the terms of a loan from the normal terms to the default terms (i.e. the terms and rates given to those who have missed payments on a loan) when that lender is informed that their customer has defaulted with another lender, even though the customer has not defaulted with the first lender.

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Clickable text or images that take you to different sites on the World Wide Web are called

pashok25 [27]

Answer:hyperlinks

Explanation:

3 0

2 years ago

Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 y

siniylev [52]

The calculated present value of the annuity is $915,166.70.

Explanation and Solution:

Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.

The formula for the present value of the annuity is given by:

$P = \frac{1- (1+i)^{-n} }{i} * R$

Where;

R = annual payment = $75,000

i = interest rate = 5.25%

P = Present value of annuity

n = number of years = 20 years

P = $\frac{1- (1+5.25)^{-20} }{5.25} * 75,000$

P = $915,166.70

5 0

3 years ago

Using the indirect method calculate the amount of net cash flows from operating activities from the following data.

e-lub [12.9K]

Answer:

Net cash: $199,600

Explanation:

First, we need to identify the increase and decrease in accounts:

+) Decrease in Account Payable = Beginning Account Payable - Ending Account Payable = 12,000 - 11,200 =$8,000

+) Decrease in Account Receivable = Beginning Account Receivable - Ending Account Receivable = 20,000 - 17,600 = $2,400

+) Increase in Prepaid Expense = Ending - Beginning = $5,600 - $4,000 = $1,600

Net cash flows from operating activities of the company can be calculated in indirect method as follow:

Net income $166,000

Adjustments to reconcile the net income to net cash flow from operating activities:

Decrease in account payable ($11,200)

Depreciation Expense $40,800

Amortization of intangible assets $3,200

Decrease in Account Receivable $2,400

Increase in Prepaid Expense ($1,600)

=> Net cash provided = Net income - Decrease in accountable + Depreciation Expense + Amortization of intangible assets + Decrease in Account Receivable - Increase in Prepaid Expense

= 166,000 - 11,200 + 40,800 + 3,200 + 2,400 - 1,600 = $199,600

Net cash: $199,600

3 0

3 years ago

You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is

sasho [114]

Answer: $25078

Explanation:

Firstly, we'll find the real interest rate which will be:

(1 + R) = (1 + r)(1 + h)

(1 + 10%) = (1 + r)(1 + 4.8%)

(1 + 0.1) = (1 + r)(1 + 0.048)

1.1 = (1 + r)(1.048)

r = 4.96%.

Now the annual deposit will be gotten by using the annuity future value which will be:

3 million = C(1.0496^40-1) / 0.0496

3 million = C(5.3995) / 0.0496

3 million = 119.627C

C = 3 million/119.627

C = 25078

Therefore, the real amount that must be deposited each year to achieve the goal is $25078

8 0

3 years ago

Which of the following is an example of unsecured debt?

klemol [59]

According to apex it is medical bills

7 0

3 years ago

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