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ivann1987 [24]
3 years ago
13

Which of the following statements regarding a 20-year (240-month) $225,000, fixed-rate mortgage is CORRECT? (Ignore taxes and tr

ansactions costs.)a. The outstanding balance declines at a slower rate in the later years of the loan's life.b. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years.c. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant.d. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant.e. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
Business
1 answer:
ira [324]3 years ago
5 0

Answer:

c. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant

CORRECT The interest will decrease while principal increase leaving a net effect of zero through the life of the loan

Explanation:

a. The outstanding balance declines at a slower rate in the later years of the loan's life

FALSE the principal decreases at a higher rate in the lather years as the interest component decreases.

b. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years

FALSE to know this we need to know the rate

d. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant

FALSE as a portion of the principal is being paid, the interest component decreases over time

e. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.

FALSE the porportion to pay the principal increase through time.

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Universal Travel Inc. borrowed $500,000 on November 1, 2013, and signed a 12-month note bearing interest at 6%. Interest is paya
valentinak56 [21]

Answer:

C.$5,000.

Explanation:

November 1, 2013

Amount of Loan = $500,000

As the Interest is payable at maturity, at December 31, 2013 only one month of interest expense is accrued, which is not paid, Following Journal entry will be passed tor record the interest expense.

Dr.  Interest Expense               $2,500

Cr.  Interest Payable on Note  $2,500

Interest Expense = $500,000 x 6% x 2/12 = $5,000

6 0
3 years ago
Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investme
olganol [36]

Answer:

a. purchases of capital goods, all new residental constructionand inventory investment

Explanation:

It is the investment measure used for determining the GDP. It is an important part of GDP as it is used as an indicator for the productive capacity i.e. future. It involves the purchase i.e. replacement, net addition made to the capital assets, and the investment made in inventories

So according to this, the option a is considered as it involved all three thins that are shown above

5 0
3 years ago
Turnover Pulse hypothesis states that ____ eaters faced high rates of extinction during the ice ages
Alisiya [41]

The turnover Pulse hypothesis states that generalist eaters confronted excessive charges of extinction during the ice a long time.

The pulsed climate variability framework indicates there are durations of extreme weather variability every 400 or 800 kyr pushed via the eccentricity maxima while lakes rapidly develop and fill tons of the Rift Valley and then unexpectedly disappear.

Phylogenetic turnover quantifies the evolutionary distance among species assemblages and is principal to expertise the main drivers shaping biodiversity. its miles affected each by means of the geographic and environmental distance between websites.

The theory is that the savannah became increasing because of increasingly more arid situations, which then drove the hominin version.

Learn more about Pulse hypothesis here: brainly.com/question/23086833

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5 0
2 years ago
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired b
gavmur [86]

Answer:

$15

Explanation:

Accounting profit is calculated as revenue less total cost.

Accounting profit = Revenue - Cost

$20 - $5 = $15

An accountant calculates accounting profit.

3 0
3 years ago
Identify the goal of outsourcing governance procedures. Group of answer choices To report on the fairness of the presentation of
VashaNatasha [74]

Answer:

To ensure that the outsourcing initiative succeeds, even as personnel, business needs, and operating conditions change

Explanation:

Outsourcing

This is simply regarded as a form of an arrangement through which one company in contact with another organization mainly to give or provide services that ordinarily could be provided by company employees.

Reasons why organizations outsource

1. To cut costs

2. To improve focus

3. To upgrade capabilities and services

4. Fasten or accelerate time to market etc.

There are several issues associated with outsourcing. They includes:

1. There is the problem of decreasing employee Morale

2. Quality problems

3. Legal issues

3. Negative impact on customer relationships and satisfaction

4. Data security and integrity issues etc.

The objective of outsourcing is to save money and/or provide better service. It aim to lessen or free up development staff to cutoff peaks and valleys in the staffing cycle.

7 0
3 years ago
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