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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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During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer inc
Crazy boy [7]

Answer:  The amount of gross margin Mazer would report if the company uses absorption costing is $1350.

Explanation:

Given that,

Mazer Manufacturing Company produced = 2,000 units of inventory

Units Sold = 1,800 units

Variable product cost = $4 per unit

Fixed manufacturing overhead cost =  $2,500

Sales price of the products = $6 per unit

Fixed manufacturing cost per unit = \frac{Total\ cost}{units\ produced}

= \frac{2500}{2000}

= $1.25 per unit

Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit

= 4 + 1.25

= $5.25

∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold

= Units sold × sales price - Units sold × Unit Product cost under Absorption costing

= 1800 × 6 - 1800 × 5.25

= 10800 - 9450

= $1350

5 0
3 years ago
When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective?
Alenkasestr [34]
True. When you analyze the key elements of a country's economic perspective environment, it is best to apply a systems perspective. When you follow the systems perspective you should be taking all of the behaviors, attributes and actions of a system when it's in its environment. instead of individualizing people and things within, it's an overall evaluation of the system. 
4 0
3 years ago
Providing something to a target market that is unique and valuable beyond simply offering a lower price than that of the competi
Scrat [10]

Answer:

Product or service differentiation competitive advantage

Explanation:

Product or service differentiation is the procedure of distinguishing the service or the product from others in order to make the product or service more attractive for a specific target market.

And Product or service differentiation is a competitive advantage which is tactic of strategic positioning for an business or firm could undertake in order to set its services or products and the brands apart from those of the others.

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7 0
3 years ago
7.A shop makes all its sales for cash.
Elis [28]

Answer:

A.) CASH BOOK

Explanation:

7 0
3 years ago
10) Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13
QveST [7]

Answer:

Explanation:

What is given:

Budgeted overhead = 175,500

Budgeted labour hours = 13,000

So Budgeted overhead per hour = 175500/13000 = 13.5

Actual labor hours = 14,500

Amount of manufacturing overhead allocated for the year based on direct labour hours = 14,500*13.5 = 195,750

4 0
3 years ago
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