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3 years ago

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

Business

1 answer:

jeyben [28]3 years ago

8 0

Answer:

The term used to describe the reduction of the balance owed on a loan with each payment made over a period of time is:

d. amortization.

Explanation:

Amortization of a loan is the gradual reduction of the balance owed on a loan because payments are being made over a period of time. Each payment is, therefore, a reduction of the borrowed fund. This gradual reduction through periodic payments is called amortization of the borrowed fund. Loan amortization, therefore, implies the spreading out of the loan payments over time. It is not the same as asset amortization, which is a kind of depreciation.

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a(n) _____ operation does not start processing or assembling products until it receives a customer order.

Scorpion4ik [409]

A Make-to-Order Operations operation does not start processing or assembling products until it receives a customer order.
This type of strategy is used to minimize product abundance that exist in the market. Usually, being done by the company whose products sold under a large price (such as car or boats)

4 0

3 years ago

A company wishes to raise $27 million by issuing 15-year semi-annual coupon bonds with face value of $1,000 and coupon rate of 6

Evgen [1.6K]

Answer:

We first need to find out the present value of each $1,000 bond and then we can figure out how many of these bonds we require to raise $27 million

The n of payments is 15*2 because semi annual payments for 15 years so our N will be 30

The YTM is 7.70/2 because of semi annual payments = 3.85

The Face value is of 1,000 so FV= 1,000

The payments our 1000*0.066=66 divided by 2 because semi annual payments so PMT= 33

We will put these values in a financial calculator to compute the PV of a $1000 bond.

PV= 903

So now we know that the company can get $903 for each $1,000 bond as the bonds present value is 903.

Now in order to find out how many bonds need to be issued to raise 27 million we will divide 27 million by 903, as 903 is the amount we can raise by issuing a single bond.

27,000,000/903=29,900.3 so 29,901

The company will have to issue 29,901 bonds of face value $1,000 to raise $27 million

Explanation:

3 0

4 years ago

Madison Corporation purchased 40% of Jay Corporation for $300,000 on January 1. On June 20 of the same year, Jay Corporation dec

Mandarinka [93]

Answer:

$420,000

Explanation:

Given the above information,

Dividend

= $75,000 × 40%

= $30,000

Share in income

= $375,000 × 40%

= $150,000

Balance in investment account

= Beginning balance + Share in income - Dividend

= $300,000 + $150,000 - $30,000

= $420,000

Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000

4 0

3 years ago

Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2021. At January 1, CSI reported an inventory of $170,000

Fofino [41]

Answer:

$65,000

Explanation:

Calculation to determine what The estimated inventory loss due to Hurricane Fred would be

Beginning inventory$170,000

Add Net purchases195,000

Goods available for sale365,000

($170,000+$195,000)

Less: Cost of goods sold (300,000)

($480,000/160%)

Estimated ending inventory$65,000

($365,000-$300,000)

Therefore The estimated inventory loss due to Hurricane Fred would be $65,000

8 0

3 years ago

Formula for average inventory

morpeh [17]

The average of inventory is the average amount of inventory available in stock for a specific period.

To calculate the average of inventory, take the current period inventory balance and add it to the prior period inventory balance. Divide the total by two to get the average inventory amount.

6 0

3 years ago