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gregori [183]
3 years ago
8

The loan officer at 2nd National Bank tells Lana she can afford a monthly payment of $1,900 on her new home loan. Assuming this

is an interest-only loan, and the principal balance is $410,000, what interest rate is Lana getting?
Business
1 answer:
Olegator [25]3 years ago
3 0

Answer:

5.56%

Explanation:

Annual payment = Monthly payment * 12

Annual payment = $1,900 * 12

Annual payment =  $22,800

So, she can afford to pay $22,800 in a year

The interest rate is Lana getting = Annual payment / principal balance

= $22,800 / $410,000

= 0.0556

= 5.56%

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Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price
Cloud [144]

Answer:

Yield with 6-day maturity is 7.70%

Yield with 18-day maturity is 2.57%

Explanation:

The formula for yield on repurchase is given as:

y = ( PAR – P ) / P x (360 / t )

P=Purchase price

PAR=Repurchase price

t= number of days of the transaction

In first scenario,PAR is $39 million,P is $38.95 million and t=6

y=($39000000-38950000)/38950000*(360/6)

y=7.70%

In the second scenario,details remained the same except for t that is 18

y=($39000000-38950000)/38950000*(360/18)

y=2.57%

This implies the longer the maturity the lesser the yield since yield is computed on daily basis.

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3 years ago
The quantity portion of the staffing definition means that organizations must be concerned about staffing levels and their adequ
azamat
The principle of the question is false to my own knowledge from my great great grandpa.
8 0
3 years ago
The relationship between an employer and an employee can be thought of in terms of a(n) __________, a description of what an emp
myrzilka [38]

The answer is psychological contract.

A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.

Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.

`

In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.

Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.

To know more about employer and employee relationship click here:

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8 0
2 years ago
Which of the following is not one of the risks that you, as an entrepreneur would take on?
svp [43]
This is a question for you. Which one would you choose? I don’t think there is a wrong answer.
6 0
2 years ago
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Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7
professor190 [17]

Answer:

$33,540,000

Explanation:

initial investment:

  • opportunity cost of land (resale price of land) = $10,700,000
  • building cost of the facilities = $21,900,000
  • other expenses related to the site (grading) = $940,000
  • total $33,540,000

The purchase cost of the land is considered a sunk costs, since it is not relevant now. What is relevant is the price at which the land could be sold at the moment of starting the project.

7 0
3 years ago
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