16. A borrower is faced with choosing between two loans. Loan A is available for $75,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. a. If the loan is repaid after 20 years, which loan would be the better choice? b. If the loan is repaid after five years, which loan is the better choice?

Q: Prev

A: The Loan provided to friends is clearly a “Non-Business” loan and so it is to be treated as…

Q: please explain 120/360

A: Solution: Interest amount is computed using formula = Principal * Interest rate * time Where time is…

Q: Explain the Rule of 72.

A: In investment and saving management, the doubling period techniques provide the valuation of the…

Q: E11.18

A: Annual Interest on Bonds = Face value of bonds x rate of interest x year = 2400000*7%*1 year  =…

Q: Using the information below, compute the raw materials inventory turnover Raw materials used…

A: An inventory turnover ratio is a type of financial ratio that shows the efficiency of a company in…

Q: Q7-1. What is interest? Explain.

A: Interest is a financial term regularly used when money is lent or received as a loan. Interest…

Q: section 1231 summary

A: Tax is the liability which has to be paid by the individual and the corporation to the Federal…

Q: When are data in 3NF?

A:

Q: the customer per small p the customer per large p= s Stork Enterprises have f gnize this tax…

A: A. Total tax charged to the customer per small package = 6% x $45 = $2.70Overall charge per small…

Q: explain the the benifts of IFRS9

A: The international financial reporting standard 9 is generally specifying how a particular…

Q: Which of the following GRI standards is topic-specific related? O GRI 102 O GRI 200 O GRI 103 GRI…

A: GRI Standards is one of the modular system that is being used. It contains three series of standards…

Q: 2/120? а. 36 b. 8 С. 24

A: Factors for 152: 1, 2, 4, 8, 19, 38, 76, and 152 Factors for 120: 1, 2, 3, 4, 5, 6, 8, 10, 12, 15,…

Q: E11.5

A: Face value of bonds outstanding on December 31, 2020 = Total Beginning Balance of Bonds Payable -…

Q: What is the binary representation for 13 in decimal? a. 1110 b. 1111 c. 1100 d. 1101

A: Binary representation is a base 2 number system that uses two numbers 0 and 1 to represent a number.…

Q: Classify the nature of the following data set,2,7,1,8,3,1,9       Raw data       Processed data…

A: Data means the collection of information. Data have the primary source of information. Firstly, the…

Q: Explanation 1031 like-kind exchange

A:

Q: the differencwe between the new IFRS 15 and old IFRS 15

A: The acronym IFRS stands for International Financial Reporting Standards that provide the rules,…

Q: Carefully explain the cross-sectional test of the CAPM.

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the relationship…

Q: am. 124.

A: The Riemann integral is a type of integral that is defined using a limit of a sum. It is named after…

Q: Solve for i 17,495=299 -1- (1 + i) - 60

A: The present value of annuity depends on the period and interest rate and payment done and these…

Q: whats 1100+90

A: The question was a simple arithmetic problem that required adding two numbers together. In this…

Q: nkkkk

A: We can decide upon the better choice of loan by computing the future value of both the loans. Lower…

Q: how this 0.625 comes ?

A: Coupon bond comes with semiannual coupons at a certain rate.  This is the amount of cash received in…

Q: practical issues of wacc

A: Every entity uses a mix of equity and debt to fund its operations. This mix is recognized as the…

Q: So the answer is  1394 or2450?

A: The deductible business expenses are the expenses which are incurred for business. If the expenses…

Q: Answer to Part C = 42250

A: Given, Maturity =10 Years Market interest rate: 6% Stated interest rate = 5%   Price of the bond is…

Q: » 24 Which of the following transactions would be recorded in the general journal?

A: 24. The following transactions would be recorded in the general journal are given below:…

Q: Given that im) = 0.1488144 and dm) 0.1417814, find m. %3D

A: i(m) = 0.1488144 d(m) = 0.1417814

Q: E12.17

A: Retained earnings refer to the amount earned by the organization till the date of preparation of the…

Q: ou put 491-28 why is it 28 and not - 175?? Can you explain that please?

A: Most of the credit card companies compute their finance charges based on average daily balance.…

Q: Which of the following is not a special-purpose journal? A. SJ В. GI C. CRJ D. CDJ

A: Special Purpose Journals:- Transactions that are of similar nature get summarized so that it can be…

Q: Problem 9-12 (IAA)

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: 2. P5,300 quarterly at 2.67% compounded monthly

A: An equivalent simple annuity is used when the project has different lives and a company has to…

Q: What is FASB ASC Topic 842 about?

A: FASB ASC is the authoritative source of U.S. Generally Accepted Accounting Principles (GAAP)…

Q: Please describe a scenario that is modeled by the following scenario: .0574 (12-18) 1+ 12 385 145130…

A: The scenario represented using the given computation is the future value of the annuity.

Q: M&M Proposition I and II using your own words.

A: M&M proposition means miller & Modigliani. It consists of 2 propositions. Proposition  I…

Q: a. The range of S is 58 while that of Pis 29 across the two states. What is the hedge ratio of the…

A: Hedge Ratio: In finance, the hedge ratio is a comparison between the value of a position protected…

Q: 1- Give the journal entry for each transaction. 2- Post each transaction to T accounts.

A:

Q: 10078+0987=

A: The aggregate of two or more number is called addition. The + symbol is used for addition.

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.