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harkovskaia [24]
2 years ago
13

Sandra is purchasing a home with a first mortgage loan for $548,250, which is the conforming loan limit for the area where she l

ives at the time that she secures approval. Her interest rate is not a prime rate, and in order to determine if it triggers the threshold for higher-priced mortgage loans, her creditor must determine if the APR for the loan exceeds the average prime offer rate by:
Business
1 answer:
Lostsunrise [7]2 years ago
7 0

Question Completion with Options:

2.5 percentage points

1.5 percentage points

3.5 percentage points

6.5 percentage points

Answer:

Sandra's creditor must determine if the APR for the loan exceeds the average prime offer rate by:

1.5 percentage points

Explanation:

The first mortgage loan principal should not exceed the conforming loan limit for the area where Sandra lives at the time that she secures the loan approval. It behooves on Sandra’s creditor to determine if the annual percentage rate (APR) for the mortgage loan exceeds the average prime offer rate (or the sample rate that is a representative of the APRs charged by creditors for mortgage loans that have low-risk pricing characteristics) by 1.5 percentage points.

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Splish Brothers Inc. issues $4.8 million, 5-year, 7% bonds at 102, with interest payable on January 1. The straight-line method
Radda [10]

Answer and Explanation:

The Journal entries are shown below:-

Interest expense Dr, $316,800

Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)

            To Interest payable $336,000    ($4,800,000 × 7%)

(Being interest expense and bond premium amortization is recorded)

Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities

5 0
3 years ago
Rob, Dave, and Kelly understand the financial risks involved in starting their own brewery; that's why they've established their
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I do believe its A.. yeap its A
8 0
2 years ago
Read 2 more answers
2. An entrepreneur must make sure to budget carefully since they oversee their own company's finances.
Fynjy0 [20]

Answer:

True .....this is because the entrepreneur is the risk bearer of the business...he is liable for any profit/loss.

8 0
2 years ago
Mike is applying for a home loan and wants to buy a house worth $150,000 in a neighborhood close to his work. however, he only h
hichkok12 [17]

Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.

6 0
3 years ago
Miller's office building with an adjusted basis of $625,000 and a fair market value of $885,000 is condemned on December 30, 201
Amiraneli [1.4K]

Answer:

1a. Recognized Gain $20,000

1b. Basis $625,000

Explanation:

1a. Calculation for Miller's recognized gain using this formula

Miller's recognized gain =Condemnation award-Costs of building a new office

Let plug in the formula

Miller's recognized gain=$850,000-$830,000

Miller's recognized gain=$20,000

Therefore Miller's recognized gain will be $20,000

1b.Miller's basis

Based on the information given we were told that Miller's office building had an adjusted basis of the amount of $625,000 which simply means that Miller's BASIS for the new office BUILDING will be the amount of $625,000

Therefore the Basis is $625,000

4 0
2 years ago
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