True of loan collateral

Assignment Help Financial Management
Reference no: EM131813006

1. Which of the following is true of loan collateral?

Loans secured by collateral always have higher finance charges than unsecured loans.

Collateral is an item of value used to secure the interest portion of a loan.

Collateral is an item of value used to secure the principal portion of a loan.

Collateral is always required by banks to lend to customers with good credit ratings.

Loans are secured by collateral that is readily marketable at a price high enough to cover the interest portion of the loan.

2. The amount of a loan is $ 15,000 that expires in 12 months at a rate of 16%, Calculate its value considering each case independently

a) The present day

b)  one year and 26 days

c) 8 months

d) 5 months and 18 days

e)15 months

Reference no: EM131813006

Questions Cloud

Impact of quantitative analysis practitioners : Impact of Quantitative Analysis Practitioners. Does this support or undermine the efficient market hypothesis?
The present value of this stream of cash flows : The first payment in one month. If the current, effective, interest rate is 7.8% p.a., what is the present value of this stream of cash flows?
What is meant by synergy and merger of equals : What is meant by “synergy” and “merger of equals?” How have these concepts been used successfully in M & As? How have they been used unsuccessfully?
Liabilities make up one aspect of financing : Business activities have to be financed. Liabilities make up one aspect of financing.
True of loan collateral : Which of the following is true of loan collateral? Calculate its value considering each case independently
Deposit now in order to fund fiona college expenses : Bibi and Henry are celebrating the birth of their daughter, Fiona. How much must they deposit now in order to fund Fiona’s college expenses?
Processing in speech perception in details : We can perceive space visually, and through the sense of hearing. How are these two ways of perceiving space similar and different? Give an example please
Prepare a pie chart that breaks down the percentage : Develop a pie chart that breaks down the percentage of total downtime that is attributed to each downtime cause during the month.
What are the formulas of triose : a) What are the formulas of triose, pentose and hexose?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd