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2 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]2 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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TRUE or FALSE??? HELP!!

Fantom [35]

True , True , True , True , True

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2 years ago

Read 2 more answers

Suppose Aiyanna's pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very litt

snow_tiger [21]

Answer:

The correct answer is option A.

Explanation:

Price elasticity of demand measures the change in the quantity demanded due to a change in the price of the commodity. In order to increase the demand for pizza, Aiyanna decides to lower the price of pizza by 5% per week.

With passage to time, the demand for a commodity becomes more and more elastic. This is because, with time, the consumers are able to get adjusted to price change. So each successive week demand will become more price elastic.

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3 years ago

Assignment: Chapter 01: Concept Check Quiz

Talja [164]

Answer:

Spellberg Inc.

Ramon Frustration with monotonous job:

d. Job variety, good compensation, and independence

Explanation:

Ramon is tired of a monotonous job, he needs job variety. For lack of appreciation for hard work, he needs good compensation. To enjoy some level of independence, he feels the lack of freedom from his former role, so he needs a job that commanded job variety, good compensation, and independence. This is surely offered by a role in sales, where he will be meeting with a variety of customers with varying degrees of interaction. He is out to solve people's problems, and a role in sales is the best to meet this need.

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3 years ago

Which of the following examples demonstrates the law of demand?A) Mary buys fewer Milky Ways at $0.80 per Milky Way after the pr

777dan777 [17]

Answer:

The correct answer is letter "C": Kelvin buys more donuts at $0.80 per donut than at $0.95 per donut, other things equal.

Explanation:

The demand law states that if the price of a good or service decreases, the quantity demanded for that good or service will increase. On the other hand, if the price of a god or service increases, the quantity demanded will decrease. The price-quantity demanded of the demand law is inversely proportional, <em>ceteris paribus</em>.

Thus, Kelvin's case is an example of the demand law since he purchases more donuts when the price is lower ($0.80) and purchases fewer donuts when the price is higher ($0.95).

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3 years ago

A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with

Andreyy89

Answer:

Difference between A and B =$42398.5

Process B is better as its PW value is smaller than Process A.

Explanation:

In order to use present worth, both Alternatives must have same time period. Since Process B has 4 years means 16 quarters so we make process A to have 16 quarters two with 2% interest rate per quarter.

Note:

We are going to use Compound Interest tables to simplify our work. Formulas can also be used.

For Process A:

Present value of process A= $-200,000-200,000(P/F,2\%,8)-10,000(P/A,2\%,16)+25,000(P/F,2\%,8)+25,000(P/F,2\%,16)$