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.
The taxes have to change by $ 50 million.
<h3>What is marginal propensity?</h3>
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income.
MPC is depicted by a consumption line, which is a sloped line created by plotting the change in consumption on the vertical "y" axis and the change in income on the horizontal "x" axis.
To learn more about MPC sums, refer
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Answer:
a. $14,000 and $14,000
b. $17,000 loss
Explanation:
a. The computation of the depreciation expense using the straight line method is shown below:
Straight-line method:
= (Acquired value of the truck - residual value) ÷ (useful life)
= (79,000 - $7,000) ÷ (5 years)
= ($70,000) ÷ (5 years)
= $14,000
In this method, the depreciation is same for all the remaining useful life
So for year 1 and year 2 the same amount of depreciation is to be charged
b. Now for computing the gain or loss first we have to determine the book value which is shown below:
For two years, the depreciation would be
= $14,000 × 2 years
= $28,000
Now the book value would be
= Acquired value of an asset - accumulated depreciation
= $79,000 - $28,000
= $51,000
So, the loss would be
= Book value - sale value
= $51,000 - $34,000
= $17,000
