Two brothers are planning to establish a caf restaurant. Bien is fond of coffee while Bryan...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Two brothers are planning to establish a café restaurant. Bien is fond of coffee while Bryan is fond of pastries. Both have contributed part of their savings but upon the assessment of the values, they need more capital. The amount needed is Php. 500.000.00, and they decided to divide it equally. Bien plans to get a policy loan of Php 100,000.00 from his life insurance and apply from a microfinance for the remaining. The requirement for both policy loan and microfinance is an application form and agreement form. The effect on the policy loan is that it will reduce the amount of Bien's life insurance with the principal and interest. On the other hand, the microfinance has 3.5% interest rate per month payable for 5 years. Bryan has a 5-year real estate property costing Php 350,000.00 at par. He plans to take a loan of Php 500,000.00 from a bank, giving the title of his land as collateral. The bank has an interest rate of 9% per annum, payable for 10 years. Questions: 1. Is Bien's loan application a wise decision? Why or why not? 2. Is Bryan's loan application a wise decision? Why or why not? 3. What can you suggest or advice the brothers about their loan plans? Explain your answer. Scoring Rubrics: 9-10 pts 6-8 pts 3-5 pts 1-2 pts The idea is well explained and analyzed with factual basis or supporting computation. The idea is explained and analyzed but without factual basis or supporting computation. The idea is explained and analyzed ambiguously but is acceptable. The idea is not accurately analyzed, and the explanation is far from the concept or main idea. Two brothers are planning to establish a café restaurant. Bien is fond of coffee while Bryan is fond of pastries. Both have contributed part of their savings but upon the assessment of the values, they need more capital. The amount needed is Php. 500.000.00, and they decided to divide it equally. Bien plans to get a policy loan of Php 100,000.00 from his life insurance and apply from a microfinance for the remaining. The requirement for both policy loan and microfinance is an application form and agreement form. The effect on the policy loan is that it will reduce the amount of Bien's life insurance with the principal and interest. On the other hand, the microfinance has 3.5% interest rate per month payable for 5 years. Bryan has a 5-year real estate property costing Php 350,000.00 at par. He plans to take a loan of Php 500,000.00 from a bank, giving the title of his land as collateral. The bank has an interest rate of 9% per annum, payable for 10 years. Questions: 1. Is Bien's loan application a wise decision? Why or why not? 2. Is Bryan's loan application a wise decision? Why or why not? 3. What can you suggest or advice the brothers about their loan plans? Explain your answer. Scoring Rubrics: 9-10 pts 6-8 pts 3-5 pts 1-2 pts The idea is well explained and analyzed with factual basis or supporting computation. The idea is explained and analyzed but without factual basis or supporting computation. The idea is explained and analyzed ambiguously but is acceptable. The idea is not accurately analyzed, and the explanation is far from the concept or main idea.
Expert Answer:
Answer rating: 100% (QA)
1 Is Biens loan application a wise decision Why or why not To assess the wisdom of Biens loan application we need to consider the details of his loan plan Bien plans to get a policy loan of Php 100000... View the full answer
Related Book For
Financial And Management Accounting An Introduction
ISBN: 9781292244419
8th Edition
Authors: Pauline Weetman
Posted Date:
Students also viewed these finance questions
-
What type of Leader do you want to be? How will you balance between being a taskmaster while creating a fun environment for the employees? Explain briefly with references.
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The Sales Discounts account is a contra account to which of the following accounts? Cost of Goods Sold Sales Returns and Allowances Purchases Discounts Sales Revenue
-
A ray reflects from a spherical mirror at point P. Explain why a radial line from the center of curvature through point P always bisects the angle between the incident and reflected rays.
-
Match each of the following unsorted lists with the maximum number of swaps that will be made by the given algorithm. __ 1 __ bubbleSort(8-element list) __ 2 __ selectionSort (4-element list) __ 3 __
-
An experienced senior auditor was assigned to investigate a possible fraudulent situation characterized by extremely high, unexplained merchandise shortages at one location of the companys department...
-
Calculate the mass of an atom of (a) helium, (b) iron, and (c) lead. Give your answers in grams. The atomic masses of these atoms are 4.00 u, 55.9 u, and 207 u, respectively.
-
in aviation 1, Which area do you think safety analysts should focus on the most today: technical factors, human factors, or organizational factors? 2, Explain the difference between findings, causes,...
-
Question 1 (10 marks): Objects a and b are moving in a 2D space. Assume that the motion path of these objects can be modeled using the following equations: For object a: f(x) = x + 10x For object b:...
-
Prepare balance sheet from the following particulars : Current ratio 2.5, Acid test ratio 1.5, Working capital 3,00,000, Cash is equal to 50% of Bills receivable, Bills receivable amount is equal to...
-
The COVID-19 pandemic changed the way many businesses approach strategic planning and management. The pandemic has also challenged the abilities of top-level leaders, who must now look to the future....
-
In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials. Actual production Direct materials purchased (actual) Standard cost of...
-
Pocalla Inc.'s April 30 inventory of raw materials is $103,000. Raw materials purchases in May are $550,000 and factory payroll cost in May is $392,000. Overhead costs incurred in May are indirect...
-
"IFCa sister organization of the World Bank and member of the World Bank Groupis the largest global development institution focused exclusively on the private sector in developing countries." It...
-
Explain the concept of technological redlining Give an example to demonstrate its social significance Explain how this concept contributes to inequality in our society.
-
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
-
Continuing to use the annual reports of a company that you obtained for Chapter 1, look for the evidence in each report of the existence of the directors, the auditors and the various regulatory...
-
The biscuit machine in question C8.1 was sold at the end of Year 4 for a price of 3,000. Required (a). Prepare the spreadsheet for Year 4 analysing the transactions and events of the year. (b)....
-
You are the Student Union management committee representative in charge of student transport affairs. Members have proposed that the Union should operate a campus bus service to operate between the...
-
What two major guides do businesses use to determine acceptable levels of performance?
-
What does an accounts receivable turnover ratio of 9.1 indicate?
-
What does a rate earned on average total assets show?
Study smarter with the SolutionInn App