Answer:
$174,500.
Explanation:
Budgeted sale in June would made up of the collections:
Month of sale collection
45% × June = 45% × 170,000 = 76500
Month following sale
50% × May sales = 50% × 180,000 = 90000
Second month following sales
= 5% × April sales = 5% × 160,000 = 8000
Budgeted cash collection for June
= 76,500 +90,000 +8,000
= $174,500.
A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in time. such an agreement is known as a/an purchase-money mortgage.
What is purchase-money mortgage?
A purchase-money mortgage is a mortgage that the seller of home issues to the borrower as part of the sale of the property. This is typically done in circumstances where the buyer is unable to qualify for a mortgage through conventional banking channels. It is also known as seller financing or owner financing. In circumstances when the buyer is taking over, the seller's mortgage, and seller financing makes up the difference between the mortgage's outstanding balance and the property's sales price, a purchase-money mortgage may be employed.
What is one of the disadvantages of the purchase money mortgage?
One drawback is that you are still, and will continue to be, the home's legal owner. In the event that those buyers turn out to be dishonest, you can be left with damaged properties. Another drawback is that it could be challenging to evict or foreclose on a buyer who defaults on a loan.
Learn more about purchase-money mortgage: brainly.com/question/20711780
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That would be an example of traditional economy.
Answer:
b. Develop and present financial planning recommendations.
Explanation:
Since in the question it is mentioned that there is a recommendation for buying a personal liability with respect to the umbrella policy so in the steps of the financial planning process, the step that should be considered is to develop & present the recommendation with regard to the financial planning as the financial planning is important than can save your future
hence, the correct option is B.
Answer:
The concept of equivalence, also known as economic equivalence, describes the reduction of a series of cash inflows (benefits) and cash outflows (costs) to a single point in time, using a single interest rate, which enables the cash flows to be compared or equated. This implies that while the amounts and timing of the cash flows (both inflows and outflows) may differ, an appropriate interest rate, factoring in the time value of money, will cause one set to be equal to the other. Therefore, to establish economic equivalence, series of cash flows that occur at different points in time must be equalized using a single interest rate through present value calculations.
Explanation:
The concept of equivalence describes a combination of a single interest rate and the idea of the time value of money. This combination helps to determine the different amounts of money at different points in time that are equal in economic value, such that a person would not hesitate to trade one for the other.
For example, if the interest rate is 10% in Year 1 and in Year 2 and you are to be paid $1,000 in Year 1, it will not make any difference to you if you are paid $1,100 in Year 2. This is because, given the prevailing interest rate of 10%, the value you receive in Year 1 and Year 2 are equivalent.
