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Damm [24]
3 years ago
8

Adams is selling his property to Katter for $94,000, and Katter is assuming an existing mortgage at 4-1/2% interest per annum wi

th the unpaid balance of $9,200. Mortgage payments are due the first of each month and include interest up to but NOT including the day of payment. The last payment was made March 1, and settlement is to be March 26. Compute the interest proration that will be credited to the buyer using a 365-day year, and holding the buyer responsible for the day of closing.
Business
1 answer:
MAXImum [283]3 years ago
6 0

Answer:

$69.53

Explanation:

loan's balance = $94,000

interest expense per year = $94,000 x 4.5% = $4,230

interest expense per day = $4,230 / 365 = $11.5890411

the seller is responsible for 25 days of interest = 25 x $11.5890411 = $289.73

the buyer is responsible for 6 days of interest = 6 x $11.5890411 = $69.53

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Last years ending inventory was overstated. This error would cause...
Vsevolod [243]

Answer:

This periods end assets to be overstated

Explanation:

As inventory is summarized in the assets if the final inventory is overstated it will generate an overstate in the following years.

7 0
3 years ago
Isabel, a human resources assistant, wants to conduct safety training for employees. So, she's creating a graphic to inform empl
strojnjashka [21]

Answer:

I think its C if it's not then sorry

8 0
3 years ago
On January 1, 20X9, Pallet Company acquires 80 percent ownership in Slat Corporation for $200,000. The fair value of the noncont
polet [3.4K]

Answer:

<em>Consolidated Assets 850,000</em>

Explanation:

We need to calcualte the alue of the purchased portion of Slat.

total assets - non-controlled = proportional owned assets

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non-controlling    (50,000)

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7 0
3 years ago
Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline
love history [14]

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

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therefore, the overall profit is  $1,550,000

7 0
3 years ago
What is the effect of limited supplies? *
Liula [17]

Answer:

higher prices

Explanation:

supply and demand (I think)

4 0
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