If you increase the interest rate on an amortized loan, does the payment increase or decrease? Why
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
The payment increases with a rise in interest ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Financial Accounting questions
-
The interest rate on an $859.50 debt was 10 1/4%. For how many months was the loan outstanding if it was settled with a payment of $907.22?
-
1. Which of the following is true with respect to bankruptcy? a. Per the federal bankruptcy code, a municipality can be declared bankrupt but not insolvent. b. Several major cities have avoided...
-
The Glory Mountain State Ski Are expects to attract 292,500 skier days during the coming ski season. A skier day represents one skier at the mountain for one day. In addition to a $ 2,000,000 per...
-
Given a risk-adjusted discount rate of 14%, calculate the discounted payback period for the following cash flow of a project. If the maximum target discounted payback period is 3 years, comment on...
-
An 11 kg block of steel is at rest on a horizontal table. The coefficient of static friction between block and table is 0.52. (a) What is the magnitude of the horizontal force that will put the block...
-
Classify each of the structures as statically determinate, statically indeterminate, stable, or unstable. If indeterminate, specify the degree of indeterminacy. The supports or connections are to be...
-
When do we use sub-flows?
-
As part of your audit of the Abba Company accounts payable function, your audit program includes a test of controls addressing the company policy requiring that all vouchers be properly approved. You...
-
1. Consider the following modification to the MergeSort algorithm: divide the input array into fourths (rather than halves), recursively sort each sort each forth, and finally combine the results...
-
Compare and contrast a traditional cable network with a hybrid fiber-coaxial network.
-
What does it mean that the current principal balance of a loan being repaid as an amortized loan is the present value of the future payment stream?
-
Sam Hinds, a local dentist, is going to remodel the dental reception area and two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $18,000. A-Dec will finance...
-
Use PsycINFO to find abstracts of articles that included race, ethnicity, gender, or nationality as a key variable. Consider topics such as body image, rumination, academic achievement, or identity...
-
In this chapter we learned that the net worth of a firm is called shareholders equity. In the context of a bank the shareholders equity is usually called the banks capital. Briefly explain what this...
-
An article in the Wall Street Journal contained the following: Burberry Group issued a surprise profit warning on Tuesday. . . . The announcement sent Burberrys stock down 21%. a. What is the...
-
When Chrysler Corporation was considering setting up its own auto finance company, it sent a memo to its dealers that contained the following: Chrysler Group is in private discussions with multiple...
-
Henry Blodget worked for Merrill Lynch during the dot-com boom. The New York attorney general accused Blodget of having praised Internet stocks in public and criticized the same stocks in private. In...
-
In a speech in October 2012, Federal Reserve Governor Daniel Tarullo made the following observation: Money market funds remain a major part of the shadow banking system and a key potential systemic...
-
Jernigan Co. receives 240,000 when it issues a 240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of...
-
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
-
You have a savings account in which you leave the funds for one year without adding or withdrawing from the account. What would you rather have: a daily compounded rate of 0.045%, a weekly compounded...
-
What is the effective annual rate of a mortgage rate that is advertised at 7.75% (APR) over the next twenty years and paid with monthly payments?
-
What is the effective rate of a monthly car loan that is advertised at 9.5% (APR)?
-
blem 3: Consider the soil profile below. If the effective stress at point C is 111 kPa, find the value of h. (30) e=0.61 Gs=2.66 Ground Surface 4m 5m e=0.48 Gs=2.67 A PP A
-
Q4 (40 marks). Two identical rigid foundations are given. Calculate the differential settlement ratio (8/L) after 100 days and long term after construction of the foundations. Hint: Average total...
-
An embankment is given (H = 5 m and y = 20 kN/m). Determine the vertical stress increase at points A, which is 5 m below the ground surface. Assume the embankment is constructed on the ground...
Study smarter with the SolutionInn App