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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

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If a gain of $225,000 is incurred in selling (for cash) a building having a book value of $900,000, the total amount reported in

Valentin [98]

Answer:

$1,125,000

Explanation:

Given;

Gain from asset disposal = $225,000

Book value of asset disposed = $900,000

Therefore,

Amount of cash received from the sale = $900,000 + $225,000

= $1,125,000

This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000

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3 years ago

Grand Canal Incorporated issued 10-year bonds six years ago with an annual coupon rate of 9.625% APR. The bonds have a face valu

aleksklad [387]

Answer:

$1,125.98

Explanation:

market price of the bonds = present value of face value + present value of coupons

PV of face value = $1,000 / (1 + 0.0599)⁴ = $792.39

PV of coupons = coupon x {1 - [1/(1 + r)ⁿ]} / r = 96.25 x {1 - [1/(1 + 0.0599)⁴]} / 0.0599 = 96.25 x 3.34659 = $333.59

market value = $792.39 + $333.59 = $1,125.98

6 0

3 years ago

Jim wants to start investing in bonds. He checks with two brokers to ask them for suggestions of bonds to buy. Broker J, who cha

svetoff [14.1K]

Answer: C

Explanation:

Broker K's suggestion will cost Jim $148.57 less than Broker J's suggestion

7 0

4 years ago

Read 2 more answers

The amount paid per year for the use of credit is called

dsp73

does it give choices

if not I think it is annual fee

6 0

3 years ago

Relationship marketing assumes that many consumers and business customers prefer to switch relationships among different organiz

erastovalidia [21]

Answer:

false

Explanation:

relationship marketing is a strategy to focus on better relationships with current customers because customers wants to have ongoing relationship with just one provider.

3 0

3 years ago