All categories

3 years ago

What may be a concern if you have an adjustable rate mortgage (ARM)?

Business

2 answers:

kipiarov [429]3 years ago

8 0

Answer:

a. After the initial fixed rate period, your rate may increase.

Explanation:

An adjustable-rate mortgage (ARM) is a mortgage whose interest rate applied to the outstanding balance keeps changing throughout the loan's life. At the sign -up, the ARM will have a relatively long fixed-rate period before interest rates begin to change.

With the adjustable-rate mortgage, the lender is at liberty to change the interest rate after the lapse of a certain period. The interest rate will keep changing from time-to-time until the entire debt is paid. This type of mortgage usually starts with a low-interest rate, at times, below the market rates. Nonetheless, the interest rate can increase or decrease significantly over the life of the loan. A significant increase in the interest rate is a worry to customers.

love history [14]3 years ago

8 0

Answer:

Explanation:

edge

You might be interested in

Your manufacturing plant is operating at full capacity. In order to meet growth forecasts, you need to expand. A new addition to

lesya692 [45]

Answer:

$2,250,000

Explanation:

The computation of the estimated next year sales is shown below:

= Sales last year at full capacity + Sales last year at full capacity × next year percentage × capacity percentage

= $2,000,000 + $2,000,000 × 50% × 25%

= $2,000,000 + $250,000

= $2,250,000

We simply applied the above formula so the correct estimated sales for the next year could come

7 0

4 years ago

When a person purchases stock in a company, he is in reality loaning money to the company.?

tia_tia [17]

No , he is not.

When a person purchases stock in a company, he became parts of the owners of the company.

The company does not we him anything. If company is making profit, he get a dividend payment. If don't, it's his risk for buying the stocks

hope this helps

8 0

4 years ago

Read 2 more answers

Atlantis Inc. is in need for funds for its expansion plan. It approaches Uni Bank with its business plan for financial assistanc

rewona [7]

When Atlantis Inc has Uni Bank source their expansion, they are using a D. external source of funding. An external source refers to something being funded outside of their direct business funds. They are using another company to fund their business expansion which overtime will be paid back to them.

7 0

4 years ago

The following information is available for Sunland Company

Oksanka [162]

Answer:

Sunland Company

Balance Sheet as at December 31, 2022

ASSETS

Non - Current Assets

Equipment (net) 110,500

Total Non - Current Assets 110,500

Current Assets

Inventory 2,900

Supplies 3,740

Accounts receivable 3,400

Cash 6,200

Total Current Assets 16,240

Total Assets 126,740

EQUITY AND LIABILITIES

Equity

Common stock 50,600

Retained Earnings 36,660

(126,740 - 39,480 - 50,600)

Total Equity

Liabilities

Current liabilities

Accounts payable 4,800

Interest payable 520

Unearned service revenue 860

Salaries and wages payable 800

Total Current liabilities 6,980

Non - Current liabilities

Notes payable 32,500

Total Non - Current Liabilities 32,500

Total Liabilities 39,480

Total Equity and Liabilities 126,740

Explanation:

A Balance Sheet shows the Assets, Liabilities and Equity as at the Reporting date.

The Retained Earnings have been calculated as 126,740(Total Assets) - 39,480 (Total Liabilities) - 50,600 (Common Stock) = $50,600.

3 0

3 years ago

Samson Company reported total manufacturing costs of $320,000, manufacturing overhead totaling $52,000, and direct materials use

Artemon [7]

Answer:

$204,000

Explanation:

Given that

Total manufacturing costs = $320,000

Manufacturing overhead = $52,000

Direct materials = $64,000

The computation of direct labor cost is shown below:-

Direct labor cost = Total manufacturing costs + Manufacturing overhead + direct materials

= $320,000 - $52,000 - $64,000

= $204,000

Therefore for computing the direct labor cost we simply applied the above formula.

3 0

3 years ago