Answer:
-1.10526
Explanation:
The computation of the price elasticity of demand is shown below:
Price elasticity of demand is
= (Change in quantity demanded ÷ average of quantity demanded) ÷ (Change in price ÷ average of price)
where,
q1 = 5
q2 = 4.5
p1 = $2
p2 = $2.2
So,
= {(4.5 - 5) ÷ (4.5 + 5) ÷ 2} ÷ {(2.2 - 2) ÷ (2.2 + 2) ÷ 2 }
= {-0.5 ÷ 4.75 } ÷ {0.2 ÷ 2.1 }
= -0.10526 ÷ 0.0952
= -1.10526
A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $20,000. The sales expected if the company produces and sells 20,000 units is:_______
a. $25,000.
b. $20,000.
c. $30,000.
d. $50,000.
e. $5,000.
Answer: B
Explanation:
Budgets that are flexible can be changed to reflect changes in revenue and expenses during the fiscal year, taking into account anticipated unpredictability. Hence sell amount will be $ 120,000.
What is Flexible budget ?Companies first take into consideration expected fixed costs, or at least those that they don't anticipate changing as the year goes on.
A flexible budget is one that adjusts according to the volume of activity or the output of units. The fixed budget is constant and under never circumstances changes.
A flexible budget, on the other hand, can be changed to meet the needs of the firm. A fixed budget is never flexible. That implies that it is the same for all levels of activity.
The original budget's selling price and cost suppositions are carried over into the flexible budget.
Fixed and varying expenses doto not switch categories. The variable amounts are updated based on the actual level of activity, in this instance sales units for the income statement.
First find the selling price of the units.
= Sales / Number of units produced
= 96,000 / 16,000
= $6 per unit = $6
If 20,000 units are sold, the sales would be:
= Number of units sold * selling price
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= 20,000 * 6
= $120,000
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Gaber Land Corp. is evaluating a 4-acre (front 2-acre and back 2-acre) waterfront property for development. Gaber is considering a design that includes a 32-unit building on each lot. Determine the total initial cost using the per unit model
Complete Question:
Gaber Land Corp. is evaluating a 4-acre waterfront property for development into rental condominiums. The front 2-acre lot is more expensive to purchase than the rear 2-acre lot, and condo leases closer to the waterfront can be more expensive than those units in the rear. Gaber is considering a design that includes a 32-unit building on each lot.
Data includes the following:
Initial Costs
Lot purchase prices: $400,000/acre front lot, $100,000/acre back lot Legal fees, applications, permits, etc.: $80,000
Site clearing and preparation: $3000/acre
Paving roadways, parking, curbs, and sidewalks: 25% of total lot at $40,000/acre.
Construction costs: $3,000,000 per building
Recurring Costs
Taxes and insurance: $5000/month per building
Landscaping: 25% of lot at S1000/acre/month
Security: $1000 building for $1500/month
Other costs: $2000/month
Revenue (assume 90% annual occupancy)
Front lot units: $2500/unit/month
Rear lot units: $1750/unit/month
Other revenue: $5000/month
Answer the following: (1) Use the concept of the per-unit model to estimate the total initial cost. annual cost, and annual revenue of this prospective project, and (2) If you made the simplifying assumption of no changes to costs and revenues for 10 years, estimate the profitability of this prospective investment ignoring the effects of money's value over time.
Answer:
Gaber Land Corp.
1a. Total Initial cost: $193,252,000
1b. Annual cost: $5,064,000
1c. Annual revenue: $5,935,200
2. Profitability of Project for 10 years:
Total Revenue $5,935,200 x 10 years = $59,352,000
Total costs $5,064,000 x 10 years = (50,640,000)
Profitability $8,712,000
The profitability totalling $8,712,000 for ten years will be reduced by the allocated cost of building for the same period in order to determine the net income.
Explanation:
a) Data and Calculations:
Initial costs:
Lot purchase prices:
Front lot, $400,000/acre x 2 = $800,000
Back lot $100,000/acre x 2 = 200,000
Legal fees, applications, permits, etc. 80,000
Site clearing & preparation: $3000/acre 12,000 ($3,000 * 4)
Paving roadways, parking, curbs, and sidewalks:
25% of total lot at $40,000/acre. 160,000
Construction costs:
$3,000,000 per building 192,000,000
Total initial costs $193,252,000
Annual costs:
Taxes and insurance: $5000/month per building $3,840,000
Landscaping: 25% of lot at S1000/acre/month 48,000
Security: $1000 building for $1500/month 1,152,000
Other costs: $2000/month 24,000
Total annual costs $5,064,000
Revenue (assume 90% annual occupancy)
Front lot units:
$2500/unit/month (32 * 4 * 2,500 * 90% * 12) = $3,456,000
Rear lot units:
$1750/unit/month (32 * 4* 1,750 * 90% * 12) = 2,419,200
Other revenue: $5000/month ($5,000 * 12) = 60,000
Total annual revenue = $5,935,200
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,700 and monthly sales increase by $19,800
John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $421,800. He estimates that the boat he wants will cost $341,400 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 12% (compounded annually) to buy the boat at retirement?
Answer:
John Fillmore must invest $53,739.68 of his inheritance annually to buy the boat at retirement.
Explanation:
To determine this, we employ the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount of the boat he wants = $341,400
M = Annual investment required = ?
r = Annual interest rate = 12%, or 0.12
n = number of yeas = 6
Substituting the values into equation (1) and solve for M, we have:
$341,400 = M * (((1 + 0.12)^5 - 1) / 0.12)
$341,400 = M * 6.35284736
M = $341,400 / 6.35284736
M = $53,739.6824846741
Approximating to 2 decimal places, we have:
M = $53,739.68
Therefore, John Fillmore must invest $53,739.68 of his inheritance annually to buy the boat at retirement.
If the growth rate of the money supply is 8%, velocity is constant, and real GDP grows at 4% per year on average, then the inflation rate will be _____%.If the growth rate of the money supply increases to 13%, velocity is constant, and real GDP grows at 2% per year on average, then the inflation rate will be _____%.If the growth rate of the money supply increases to 13%, velocity grows at 11%, and real GDP grows at 2% per year on average, then the inflation rate will be ______%.
Answer:
Explanation:
The formula to solve the question is:
∆M + ∆V = ∆P + ∆Y
where,
∆M = relation among money growth
∆V = changes in money velocity
P = change in prices
∆Y = change in real GDP
1. For question 1,
∆M = 8%, ∆V = 0, ∆Y = 4
∆M + ∆V = ∆P + ∆Y
8% + 0 = ∆P + 4%
∆P = 8% - 4%
Inflation rate = 4%
2. ∆M = 13%, ∆V = 0, ∆Y = 2%
∆M + ∆V = ∆P + ∆Y
13% + 0 = ∆P + 2%
∆P = 13% - 2%
∆P = 11%
Inflation rate = 11%
3. ∆M = 13, ∆V = 11, ∆Y = 2
∆M + ∆V = ∆P + ∆Y
13% + 11% = ∆P + 2%
∆P = 13% + 11% - 2%
∆P = 22%
Inflation rate = 22%
Fifteen years ago, your parents opened an investment account with an initial deposit of $5,000. Today, that account is worth $38,563. What average annual rate of return did they earn on their investment?
A. 14.47%
B. 14.59%
C. 14.78%
D. 15.03%
Answer:
B. 14.59%
Explanation:
Nper = 15
PMT = 0
PV = -5,000
FV = 38,563
Type = 0
Using the Ms Excel
Rate of return = Rate(Nper, PMT, PV, FV)
Rate of return = Rate(15, 0, -5000, 38,563, 0)
Rate of return = 0.145900003
Rate of return = 14.59%
Under the Real Estate Law of California, an agent is required to give a copy of the listing agreement to his principal at:__________.
a. the close of escrow.
b. the beginning of escrow.
c. once the buyer has signed it.
d. at the time of signing.
Answer:
d. at the time of signing.
Explanation:
Under Section 10142 of real estate law agent has to submit a copy of the listing agreement to the principal.
Section 10142 of the real estate law of California is attached with this is attached please find it.
A relevant cost is:_______.
a. the foregone benefit of choosing to do one thing instead of another.
b. a cost that differs across decision alternatives.
c. a cost that has already been incurred.
d. a cost that is the same regardless of the alternative the manager chooses.
Answer:
b. A cost that differs across decision alternatives.
Explanation:
When managers make business decisions, some costs are incurred when such decisions are made. They are called relevant cost. The main purpose of relevant cost is to avoid duplication of data that are not necessary, which could further make business decisions complicated.
Example of relevant cost is when a business or an organization checks whether or not to sell a business unit. The cost incurred in such decision is called relevant cost.
Costs of insurance vary by state, risk profile and amount of coverage. Visit insurance company websites and find out how much each of these insurance policies would cost you: In Indiana Please
1.home owner's insurance for $100,000
2.medical insurance for yourself and three family members (there is no set price because medical insurance covers a percentage of costs and has co-pays)
3.automobile insurance for two cars for $50,000 each.
Answer:
Home owner’s insurance: most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance. The costs for such a policy would be $500 deductible.
Medical Insurance: For a four person household with a family income of $75,000 in Virginia would be approximately $600 a month. This would not include supplementary insurance.
Automobile insurance: To insure to cars up to $50,000 in damages each, would cost $1,200 a year, paid every 6 months. This assuming that only 2 people in the household have driver’s licenses.
Explanation:
This was the sample answer given
Answer:
Homeowners insurance: most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance. The costs for such a policy would be $500 deductible. Medical Insurance: For a four person household with a family income of $75,000 in Virginia would be approximately $600 a month. This would not include supplemental insurance. Automobile insurance: To insure two cars up to $50,000 in damages each, would cost $1,200 a year, paid every 6 months. This assumes that only 2 people in the household have driver’s licenses.
Explanation:
for pluto i did change it up a little
Use the following information to answer next three questions: IO PI IRR LIFEProject 1 $300,000 1.12 14.38% 15 yearsProject 2 $150,000 1.08 13.32% 6 yearsProject 3 $100,000 1.20 16.46% 3 yearsAssume that the cost of capital is 12%.If the firm has a maximum capital expenditures budget of $450,000, and if the projects are independent and mutually exclusive but not repeatable, which project(s) should be accepted?Projects 1 and 2Projects 1 and 3Projects 2 and 3Projects 1, 2, and 3Project 1
Answer:
Project 1
Explanation:
IO PI IRR LIFE
Project 1 $300,000 1.12 14.38% 15 years
Project 2 $150,000 1.08 13.32% 6 years
Project 3 $100,000 1.20 16.46% 3 years
Assume that the cost of capital is 12%.
We should invest in the projects that have the highest profitability index (PI) first.
PI = present value of project's cash flows / initial outlay
Projects with a high PI should also have high IRRs and this applies to this situation:
Project 3 has a PI of 1.2 and an IRR of 16.46%Project 1 has a PI of 1.12 and an IRR of 14.38%Project 2 has a PI of 1.08 and an IRR of 13.32%If the protects weren't mutually exclusive and the company had enough money for the 3 of them, then it should invest in all of them. But that is not the case, here, since the company has to decide in which project it will invest (only 1 project). The first option should be project 3, but since it cannot be repeated, and its life is short, I would go for project 1.
Besides, it is the only possible answer since you have to choose only 1 project (remember projects are mutually exclusive).
ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, the amount of stockholders equity would
Answer:
increase by $336,000.
Explanation:
Options are "1. increase by $176,000. 2. increase by $336,000. 3. increase by $160,000. 4. be unaffected."
Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.
a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 6%. Note: The face value of the bond is $1,000. (Do not round intermediate calculations. Round your answers to 3 decimal places.) b. What is the duration if the yield to maturity is 10%
Answer:
A) the formula to calculate modified duration of bonds:
modified duration = [1 - (1 + y)⁻ⁿ] / y
modified duration = [1 - (1 + 6%)⁻³] / 6% = 2.673 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 2.673 years x 1.06 = 2.833 years
B) modified duration = [1 - (1 + 10%)⁻³] / 10% = 2.487 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 2.487 years x 1.1 = 2.736 years
a. The duration should be 2.833 years.
b. The duration should be 2.736 years.
The calculation is as follows:Modified duration = [1 - (1 + y)⁻ⁿ] ÷ y
= [1 - (1 + 6%)⁻³] ÷ 6%
= 2.673 years
Macaulay duration = modified duration × (1 + yield)
= 2.673 years × 1.06
= 2.833 years
B) modified duration = [1 - (1 + 10%)⁻³] ÷ 10%
= 2.487 years
Macaulay duration = modified duration × (1 + yield)
= 2.487 years × 1.1
= 2.736 years
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All of the following are documents used for inventory control except:______.
a. a purchase order.
b. a vendor's invoice.
c. a petty cash voucher.
d. a receiving report.
Answer:
c. a petty cash voucher.
Explanation:
For controlling the inventory following documents are to be used i.e.
1. Purchase order
2. Vendor invoice
3. Receiving report
These three documents we called as an voucher package
But it does not involved the petty cash voucher
Therefore the correct option is c.
And, the same is to be considered
In Opulencia, the marginal propensity to save is only 0.10. In an effort to promote the virtues of saving, the government starts a campaign encouraging citizens to increase their marginal propensity to save to 0.20. How would this greater saving affect the impact of the multiplier?
A) The multiplier rises, making spending more powerful.
B) The multiplier falls, making spending less powerful.
C) The multiplier stays the same.
D) The multiplier will disappear altogether.
Answer:
B) The multiplier falls, making spending less powerful.
Explanation:
As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.
Also,
MPS + MPC = 1
And,
Multiplier = 1 ÷ (1 - MPC)
or
= 1 ÷ MPS
In addition to this, MPS has the negative relationship with the multiplier
that means if the MPS increased then the multiplier decreased and vice versa
Therefore the option B is correct
Acme Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $15,000 and total fixed costs by $9,000. By what amount will net income increase?
a. $6,000
b. $9,000
c. $3,000
d. $0
Answer: C
Explanation:
For a soft drink compant, dividing the market up based on fashion preferences is an example of which segmentation variable?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
Answer:
The correct answer is the option C: Psychographic
Explanation:
To begin with, in the field of marketing the term known as segmentation refers to the strategy of dividing the target market into different groups that characterizes themselfs because of having common features in their lifestyles of something like that for example. So when segmentation takes place there are different types of it, the psychographic segmentation is the one that focus on the psycological part of the people and their common likes, attitudes, aspirations and more. Therefore that one they are segmentating according to fashion preferences they are doing a psychographic segmentation
Sunoco in Canada realizes the importance of physical evidence to determining the value of the service being provided.As a result,it has refurbished its restrooms and committed its station operators to maintaining hygienic restrooms.A clean-smelling restroom is an example of a positive:____________.
A) Artifact
B) Functional form
C) Ambient condition
D) Spatial format
E) Service symbol
Answer: ambient condition
Explanation:
Based on the scenario in the question, a clean-smelling restroom is an example of a positive ambient condition.
Ambient condition simply refers to a term typically used by designers when referring to the ventilation systems. It should be noted that ambient conditions gas to do with temperature, and humidity.
Ambient working conditions are essential for a company. From the question, refurbishing of the restrooms and maintaining hygienic restrooms shows that a positive ambient condition is being created.
Which financial statement would include a listing of a companies assets
Answer:
Balance Sheet
Explanation:
In accounting, Balance sheet will show a complete listing of assets, liabilities and Equity of a company within a specific time period. (For most companies, the balance sheet will be made at each end of the year)
under the Assets segment, Balance sheet will specify several accounts arranged based on their liquidity. Cash usually put at the top of the list since it's considered as the most liquid assets.
People use balance sheet to give a general measurement on Company's financial health. If for example, they noticed that the liability is significantly larger than their assets, investors might feel discourage to invest in the company.
Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.
What was the firm's ROE?
a. 12.79%
b. 13.47%
c. 14.18%
d. 14.88%
e. 15.63%
Answer:
ROE = 0.14175 or 14.175%
Explanation:
The DuPont equation to calculate ROE or return on equity breaks the ROE into three components namely Net Income or Net Profit margin, Total assets turnover and equity multiplier. This is used to see what factor are affecting the Return on Equity generated by the business. ROE under DuPont can be calculated as follows,
ROE = NI Margin * Total Assets Turnover * Equity Multiplier
ROE = 0.0525 * 1.5 * 1.8
ROE = 0.14175 or 14.175%
The economy is part of that influences all organizations
Suppose a retail store was offering 10% off all prices on all goods. The incentive to take advantage of the 10% savings is:_____.
Answer:Directly related to the list price of the good
Explanation:
Suppose that 2 years after the issue date (as in Part a) interest rates fell to 8%. Suppose further that the interest rate remained at 8% for the next 8 years. What would happen to the price of the bonds over time
Answer:
the first part of the question is missing, so I looked fro a similar one:
Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments.
the market price of the bond after 2 years:
PV of face value = $1,000 / (1 + 4%)¹⁶ = $533.91
PV of coupon payment = $50 x 11.652 (PV annuity factor, 4%, 16 periods) = $582.60
market price = $1,116.51
the market price of the bond after 5 years:
PV of face value = $1,000 / (1 + 4%)⁶ = $790.31
PV of coupon payment = $50 x 5.2421 (PV annuity factor, 4%, 6 periods) = $262.11
market price = $1,052.42
the market price of the bond after 7 years:
PV of face value = $1,000 / (1 + 4%)² = $924.56
PV of coupon payment = $50 x 1.8861 (PV annuity factor, 4%, 2 periods) = $94.31
market price = $1,018.87
Cosplay Unlimited sells 1,140 outfits per year at an average price of $143. The terms of the sale are 1/15, net 40. The discount is taken by 71 percent of customers. What is the company's accounts receivable balance?
a. $19,651.73
b. $17,865.21
c. $9,937.52
d. $8,632.13
e. $7,326.74
Answer: c. $9,937.52
Explanation:
The Accounts receivable balance can be calculated by;
= Outfits per years * Average Price * (Collection period/365)
Collection period;
71% take the discount which means that they pay in 15 days while the rest pay in 40.
= (71% * 15) + (29% * 40)
= 22.25 days
Accounts Receivable balance = 1,140 * 143 * (22.25/365)
= $9,937.52
Based on the following information, calculate the cost of goods sold and ending inventory using FIFO, LIFO, and weighted average assuming a perpetual inventory system is in place.
Beginning Balance - 90 units at $11
March 3 - Purchase 300 units for $15
April 4 - Sell 240 units for $28
June 30 - Purchase 250 units for $18
August 16 - Sell 180 units for $30
Answer:
Cost of Sales :
FIFO = $ 6,030
LIFO = $6,840
Weighted Average = $6,354.60
Ending Inventory :
FIFO = $4,176
LIFO = $3,150
Weighted Average = $3,636.60
Explanation:
FIFO
This method assumes that the first inventory purchased will be the first to be sold
Cost of Goods Sold :
90 units × $11 = $990
150 units × $15 = $2,250
150 units × $15 = $2,250
30 units × $18 = $540
Total = $ 6,030
Ending Inventory :
232 units × $18 = $4,176
LIFO
This method assumes that the last inventory purchased, will be the last to be sold
Cost of Sales :
240 units × $15 = $3,600
180 units × $18 = $3,240
Total = $6,840
Ending Inventory :
90 units × $11 = $ 990
60 units × $15 = $ 900
70 units × $18 = $ 1,260
Total = $3,150
Weighted Average
A new average cost per unit is calculated with every purchase made.
New Average Cost = (90 units × $11 + 300 units × $15) ÷ 390 units
= $14.08
Cost of Sale , April 4 = 240 units × $14.08
= $3,379.20
New Average Cost = (150 units × $14.08 + 250 units × $18.00) ÷ 400 units
= $16.53
Cost of Sale, Aug 16 = 180 units × $16.53
= $2,975.40
Total Cost of Sales = $3,379.20 + $2,975.40
= $6,354.60
Ending Inventory = 220 units × $16.53
= $3,636.60
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a.variable cost of goods sold b.fixed manufacturing costs c.variable selling and administrative expenses d.fixed selling and administrative expenses
Answer:
c. variable selling and administrative expenses
Explanation:
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the variable selling and administrative expenses. Variable cost is comprised of cost of goods sold and selling and administrative expense when we deduct cost of goods sold from sales we get manufacturing margin and when we deduct further selling and administrative expense we get contribution margin.
AJAX Inc. has subsidiaries in Vietnam, Bangladesh, and China. AJAX pays an annual insurance premium to OPIC (the Overseas Private Investment Corporation). AJAX is probably protecting itself from _____.
a. natural disasters overseas.
b. financial instability.
c. unfair competition.
d. nationalization.
Answer:
The correct answer is the option B: Financial instability.
Explanation:
To begin with, the "Overseas Private Investment Corporation" or OPIC was the name given to a financial institution of the United States Government who main purpose was to help solve problems according to financial matters of companies who were going abroad to establish work and capital. Therefore that this institution was created with the objective of impulsing the United States' foreign policies. That is why that if AJAX pays an annual insurance premium to OPIC is because its trying to protect itself from financial instability that could bring the fact of going overseas to work, which in case that happens the OPIC will help them to resolve that situation
A user access agreement typically is __________ than the list of employee expected behaviors within an organization.
Answer:
Narrower
Explanation:
To make sure that all employees that work in an organization know all their responsibilities, that is ethical and legal. They are required to review and to also accept the terms that has been stated in the user access agreement form.
So for this question, the user access agreement is narrower than the list of employees expected behavior in an organization.
On Sep 18, Mesa returned $800 of the inventory. On Sep 20, Mesa paid Butte for the inventory. What journal entry did Mesa make on Sep 20
Answer:
Decrease the trade payables by a debit entry with the amount paid after the return is made. Also decrease the assets of cash by creating a credit entry to depict outflow of economic benefits.
Explanation:
Hi, your question is incomplete, i tried looking for the question online but i could not find it.
Here i will explain the journal entries that are usually made when there is a Purchase, Return and Payment of Inventory assuming the view of the customer or trade receivable.
1. Purchase
Here we have to increase the value of inventory by creating a debit entry and also increase the value of trade payable by creating a credit entry.
2. Return
The value of trade payables has to be decreased to the extent of the amount that would have been paid if the inventory was not returned. Also the inventory value has to decrease with the same amount as for the trade payable.
3. Payment
Decrease the trade payables by a debit entry with the amount paid the after return is made. Also decrease the assets of cash by creating a credit entry to depict outflow of economic benefits.
A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57 years at 12.98%, with .13 points. The loan payments will be monthly. The closing cost is estimated to be $2,168.
Calculate the APR.
A bank has agreed to lend you $524,000 for a home loan. The loan will be fully amortized over 40 years at 5.33%, with .58 points. The loan payments will be monthly. The closing cost is estimated to be $2,579 and you plan to refinance the mortgage in 6 years.
Calculate the prepaid interest.
Answer:
ARP = 13.2184 %
Prepaid interest = $3,057.66
Explanation:
The ARP stands for annual percentage rate. It is defined as the amount of interest that one has to pay annually for the total mortgage loan he or she takes. In the question, the ARP will be 13.2184 % for a loan amount of $127,000 at the rate of 12.98% that will be amortized in 57 years with 0.13 points.
The prepaid interest is the interest amount the borrower pays for the loan he takes before the first scheduled of the debt repayment. In the question, the prepaid interest amount is $3,057.66 for the loan amount $524,000 to be amortized in 40 years with 0.58 points and at 5.33%.
The credit facility alludes to a type of financial instrument in which an amount of money is granted to another party in exchange for the valuation or principal quantity being repaid in the future.
In so many circumstances, the creditor will add interest to the original amount, which the borrower will be liable to repay in addition to the principal amount.
The answers are:
The percentage of ARP is 13.2184 %
The amount of Prepaid interest is $3,057.66
The annual percentage rate is the amount of interest that a person must pay each year on the total mortgage loan that he or she takes out. The ARP will be 13.2184 percent for a loan amount of $127,000 at a rate of 12.98 percent, amortized in 57 years with 0.13 charges in the case in question.
The prepayment interest rate is the number of interest costs by the debtor for the loan he takes out before the first specified repayment date. The prepaid interest amount in the question is $3,057.66 for a loan of $524,000 to be amortized over 40 years at 0.58 points and 5.33 percent.
To know more about the calculation of the interest and the percent rate, refer to the link below:
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A competitive market is one in which:
a. few large sellers compete for a majority of the market share.
b. individual sellers and buyers have a lot of influence over market price.
c. government oversees its operation.
d. fully informed price-taking buyers and sellers easily trade a standardized good.
Answer:
d. fully informed price-taking buyers and sellers easily trade a standardized good.
Explanation:
A competitive market is a market where there is a large number of buyers and sellers that sell and purchased homogenous products. The sellers are to be considered as price takers also they cannot influence the price of the market. Plus, the demand for the perfect competition is perfectly elastic
Therefore the correct option is D.
