Answer: A) Remainderman
Explanation:
A Remainderman may sound like something from a horror movie but it is a property law term that refers to a person that is billed to take over or inherit an estate after the LIFE ESTATE of the previous owner is terminated.
Life Estate is an agreement where a person owns a property or asset for the duration of their life but as soon as they pass on, the asset or property reverts back to the original owner of a THIRD party.
The Remainderman is the person who the property reverts to.
In the above scenario therefore, the woman is in possession of a Life Estate but the Stepson is the Remainderman.
Based on the scenario above, the economic concept which Frakie is faced with is OPPORTUNITY COST. Opportunity cost refers to a benefit or value that a person could have received but which he gave up in order to take another course of action. Thus, an opportunity cost represents an alternative given up when a decision is made.
Answer:
A Mortgage Backed Bond is:
e. A loan in which security interest in real estate is granted by a borrower.
Explanation:
A mortgage backed bond is tied to or secured on a real estate asset. This implies that the bond is not just a promise to pay a debt obligation but the attached promise is secured or backed by some real assets. There is extra security provided for the bond because specific assets are identified as securities for the bond. Since the bonds are associated with some real assets, the assets can be traded in the event that the debt obligations are not met.
Answer:
Cash provided by operating activities $39,650
Explanation:
The computation of the cash provided by operating activities under the direct method is as follows:
Sales Revenue $30,600
Decrease in Account Receivable $4,600
Interest Revenue $5,600
Increase in Interest Receivable - $1,150
Cash provided by operating activities $39,650
We simply applied the above sequence so that the correct value could come
And, the same is to be considered
Answer:
Annuity will be $33112.644
Explanation:
We have given future value ( FV ) = $4000000
Rate of interest r = 5% = 0.05
Number of periods n = 40
We know that future value is given by ![Futurte\ value(FV)=\frac{A}{r}[(1+r)^n-1]](https://tex.z-dn.net/?f=Futurte%5C%20value%28FV%29%3D%5Cfrac%7BA%7D%7Br%7D%5B%281%2Br%29%5En-1%5D)
Here A is annuity
So ![4000000=\frac{A}{0.05}[(1+0.05)^{40}-1]](https://tex.z-dn.net/?f=4000000%3D%5Cfrac%7BA%7D%7B0.05%7D%5B%281%2B0.05%29%5E%7B40%7D-1%5D)
![200000=A[(1+0.05)^{40}-1]](https://tex.z-dn.net/?f=200000%3DA%5B%281%2B0.05%29%5E%7B40%7D-1%5D)
So annuity will be $33112.644
