Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?

a.) The annual payments would be larger if the interest rate were lower.
b.) If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan.
c.) The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower.
d.) The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.
e.) The proportion of interest versus principal repayment would be the same for each of the 7 payments.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926861

Have any Question? 


Related Questions in Basic Finance

Wholesale hanks hardware had beginning retained earnings of

Wholesale Hank's Hardware had beginning retained earnings of $18,670. During the year, the company paid dividends of $2,050, and reported total sales of $203,846. Their tax rate is 35 percent. For the year, costs were $8 ...

The board of directors of api a relatively new electronics

The board of directors of API, a relatively new electronics manufacturer, has decided to beginning paying a common stock dividend to increase the attractiveness of the stock in the free market. The board plans to pay $2. ...

How do pension funds lsquouse assets in their portfolioshow

How do pension funds ‘use' assets in their portfolios? How does this depend on the degree of maturity of the pension fund?

How do reits differ from other mutual fundsare all reits

How do REITs differ from other mutual funds? Are all REITs pretty much the same? What are their differences?

An important source of temporary cash is trade credit which

An important source of temporary cash is trade credit, which does not actually bring in cash, but instead slows its outflow. Vendors often provide discounts for early payment. What is the formula to determine the effecti ...

Assignment questionsa list and briefly describe the three

Assignment Questions A. List and briefly describe the three general areas of responsibility for a chief financial officer (CFO) of a selected non-financial company which is listed on Australian Stock Exchange (ASX). Expl ...

For this assignment you will analyze a home mortgage loan1

For this assignment, you will analyze a home mortgage loan. 1. Find a description, asking price, and real estate taxes of a house for sale, and decide on a purchase price you would be willing to pay (assuming you have th ...

Please answer the following questions1 find the required

Please answer the following questions: 1. Find the required return for a stock, given that the current dividend is $2.75 per share, the dividend growth rate is 6.5 percent, and the stock price is $105.00 per share. 2. A ...

Task - task covers study schedule weeks 5-shy12

Task - Task covers study schedule weeks 5-­12 inclusive. Q2-­1 Naming cells in spreadsheets Critically evaluate a YouTube video on naming cells in spreadsheets. What are the advantages of naming cells in formulas Paste a ...

What type of securities do gses sell what is the purpose of

What type of securities do GSEs sell? What is the purpose of GSEs? Who owns the GSEs? What happened to the federal government guarantee of securities issued by Fannie Mae and Freddie Mac in 2008?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate