User Account

All Pages

Why is amortization beneficial to the lender

Assignment Help Accounting Basics
Reference no: EM132996835

Question - Assume you work for a lending institution and one of your regular customers has approached you to borrow $200,000 to purchase a fleet of trucks for her company.

Explain what it means to amortize a loan. What tools would you use to amortize a loan?

Why is amortization beneficial to the lender?

Why is it beneficial to the borrower?

Reference no: EM132996835

Questions Cloud

Explain the differences in the variances : Question - Explain the differences in the variances (favorable and unfavorable) and the significance of variances
Discuss the concept of interrelationship of politics : Discuss the concept of interrelationship and interdependence of politics, political movements and policing. In your discussion, identify at least 2 positive
How would artsy adjust for the fee on bank reconciliation : On the last bank statement, a service fee for printing new checks amounted to $31. How would Artsy adjust for the fee on the bank reconciliation
What impact the addition of homeland security : Pick one of the policing strategies provided in the content overview. In your discussion posting summarize the policing strategy, provide an example.
Why is amortization beneficial to the lender : Explain what it means to amortize a loan. What tools would you use to amortize a loan? Why is amortization beneficial to the lender
How ethnocentrism may cloud a person judgment : How ethnocentrism may cloud a person's judgment. How someone from the suburbs may interpret the situation differently since they are not experiencing.
Prepare journal entries to record the purchase : Prepare journal entries to record the purchase of the copyright and the annual amortization of the copyright on December 31, 2020
How the invention of concrete affected roman expansion : How the invention of concrete affected Roman expansion. How did concrete aid the Romans, and what architectural techniques could they now use?
Provide screenshots of the accounts : Provide screenshots of the accounts and explain the reasoning for your choice and how it meets your banking needs

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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