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amid [387]
3 years ago
9

An adjustable rate mortgage originator is adversely affected by _______ interest rates while the borrower is adversely affected

by _______ interest rates. Multiple Choice increasing; decreasing increasing; increasing decreasing; decreasing decreasing; increasing stable; decreasing
Business
1 answer:
In-s [12.5K]3 years ago
4 0

Answer:

DECREASING interest rates affects the originator while INCREASING rates affects the borrower.

Explanation:

An Adjustable Rate Mortgage (ARM) is a loan with an interest rate that changes or varies.

The ARMs may start with lower monthly payments than fixed-rate mortgages, but know that Your monthly payments could change. It may not go down or it will just go down a little even if interest rates go down.

An Adjustable interest mortgage is a loan whose interest rate is not steady or the same. Its interest rate is adjustable.

It is characterized by frequent changes of the interest rate,

A periodic change in interest rate. and a total change in interest rate over the life of the loan, sometimes called life cap.

An adjustable rate mortgage transfers all the risk from the lender to the borrower.

The Advantage of a 30-year fixed rate mortgage is that it is an almost risk-free mortgage. And even though an adjustable rate mortgage may carry a lower initial rate, it's almost certain that the rate will rise at some point in the future. You can buy a very expensive house, and it feels as though you paid almost nothing for it.

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Kearney Inc. has a factory with the following characteristics: direct labor of $82056, direct materials of $52432 fixed overhead
frutty [35]

Answer:

The amount of cost from Pool A that is allocated to LQ6 is $7,802.

Explanation:

Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:

Direct labor = $82,056

Variable overhead = $146,362

Number of labor hours used by LQ6 = 162

Factory's labor costs per hour = $27

Therefore, we have:

Factory's labor cost of LQ6 = Number of labor hours used by LQ6 * Factory's labor costs per hour = 162 * $27 = $4,374

Variable over allocated to LQ6 from Pool A = (Factory's labor cost of LQ6 / Direct labor) * Variable overhead = ($4,374 / $82,056) * $146,362 = $7,801.83518572682

Rounding to whole number of $ as required, we have:

Variable over allocated to LQ6 from Pool A = $7,802

Therefore, the amount of cost from Pool A that is allocated to LQ6 is $7,802.

4 0
3 years ago
A researcher examining the effects of an experimental surgery on epilepsy randomly assigns epileptic patients to three different
sergey [27]
The answer to this question is the "WAIT-LIST CONTROL". When a  researcher is examining the effects of an experimental surgery on epilepsy randomly assigns epileptic patients to three different conditions. The first condition is that the participants receive the surgery. The second condition is that the patients receive the medication while third condition, the patients receive the surgery one month after the other group of patients. The third group of patients who need to wait for another one month is in the WAIT-LIST CONTROL and can only be accommodated after the other group is done.
6 0
3 years ago
Compare and contrast the risks and goals of entrepreneurs and inventors.
suter [353]

The difference between an inventor and an entrepreneur is that, an inventor develops new services and goods but he does not have them to the market. An entrepreneur risks resources may it be human, capital or natural in order to bring to the market improved and new products.

The risk which is incurred between entrepreneur and inventor is that, entrepreneur undergoes huge financial risks because a lot of money is being invested while inventor has low financial risk since there is no big investment which is being required.


4 0
3 years ago
Read 2 more answers
Exercise 13-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in mill
spin [16.1K]

Answer:

See below

Explanation:

Data given

Cash and cash equivalents $760 $77

Accounts receivables net $2,080 $1,890

Inventory $830 $810

Other current assets $440 $433

Total current assets $4,110 $3,210

Total current liabilities $2,100 $1,590

Net credit sales $8,258

Cost of goods sold $5,328

1. Current ratio = Current assets/Current liabilities

= 4,110/2,100

= 1.96

2. Accounts receivable turnover = Credit sales/Average accounts receivables

= 8,258÷ [(2,080+1,890)/2]

= 8,258 ÷ 1,985

= 4.16 times

3. Average collection period = Average accounts receivables/Credit sales × 365 days

= (1,985/8,258) × 365

= 87.7 days

4. Inventory turnover = Cost of goods sold/Average inventory

= 5,328/[830 + 810)/2]

= 5,328/820

= 6.5 times

5. Days in inventory = Average inventory/Cost of goods sold × 365

= (820/5,328) × 365

= 56.2 days

3 0
3 years ago
In April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana to its plant in Florida
Verdich [7]

Answer:

A) $158.40

B) $77.90

C) $42

Explanation:

The question is to determine the tax figures for both the State Unemployment Tax Act (SUTA) for Louisiana and Florida and the net Federal Unemployment Tax Act (FUTA) on Sherm's wages.

A) Amount of SUTA tax the company must pay to Louisiana on Sherm's wages

Out of the $14,190 wages of Sherm for the year, $4,950 was paid in Louisiana

Meaning the State SUTA tax in Louisiana = $4,950 x the tax rate for SUTA in Louisiana = 3.2%

= $4,950 x 3.2% = $158.40

B) Amount of SUTA tax the company must pay to Florida on Sherm's wages

Out of $14,190, $4,950 was paid in Louisiana meaning (14,190 - 4,950) = 9,240 was paid in Florida

However, the taxable wage limit is $7,000

threefore, SUTA in Florida = ($7,000-$4950 x 3.8%

= $77.90

C) Amount of the net FUTA tax on Sherm's wages

Using the same taxable wage limit of $7,000

FUTA tax = $7,000 x 0.6% = $42

8 0
3 years ago
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